By Raechel Thankam Job and Richa Naidu July 30 Sluggish European demand and weak respiratory sales raised doubts on Thursday about whether Haleon can meet its sales targets, sending shares in the consumer health company lower despite better-than-expected first-half profit.
The British maker of Theraflu and Flonase cold medicines and Sensodyne toothpaste reported first-half organic revenue growth of 2.6%, in line with forecasts, but meaning a stronger second half is needed to hit its medium-term target of 4% to 6% growth
Amid cautious consumer spending, Haleon has been expanding distribution and improving shelf positioning in the United States, its largest market. That helped North American organic revenue growth reach 3.1% in the second quarter, ahead of expectations. However, growth in Europe was nearly flat, while respiratory sales fell 6.5%, a steeper decline than the 3.4% drop in the first quarter.
Shares had fallen as much as 3.3% by 1230 GMT. STRONGER SECOND HALF “We’re going to have a stronger second half than first half, and we’re confident in that,” CEO Brian McNamara told analysts, adding that growth would be driven by some emerging markets and a recovery in demand for cough-and-cold products. A weak flu season, particularly in North America, Europe and China, has weighed on the sector.