Haleon Plc (NYSE:HLN) shares dropped to a 52-week low on Thursday after the consumer health company cut its full-year guidance.
The group lowered its 2026 organic revenue growth expectation to roughly 2.5%, down from the prior range of 3%-5%.
Softness in Some Categories
"Our third quarter organic revenue growth of 2.6% was below our expectations as we navigated softness across some of our categories, including weaker cough, cold and flu consumption,” CEO Brian McNamara said in a statement.
“We delivered strong performances in Oral Health, and our turnaround plan in North America continues to make progress. We are clear on where we need to improve, and we are taking action to deliver stronger performance despite challenging markets,” McNamara added.
Third-Quarter Performance Highlights
Haleon generated 2.6% organic revenue growth in the third quarter with sales of 2.868 billion British pounds ($3.82 billion), reflecting a 2.1% pricing contribution alongside a 0.5% gain from volume and mix.
Innovation propelled Oral Health sales up 8.8% to £930 million, while North America expanded 2.5% to £992 million as Sensodyne and Centrum drove double-digit consumption gains across the U.S. market.
However, soft consumer demand for cold and flu remedies curtailed North American retail restocking.
Emerging markets still expanded 5.1%, powered by high-teens expansion in India, continued e-commerce momentum in China, and sequential gains across the Middle East and Africa.
Regulatory Roadblocks And Brazil Strategy
In China, an unexpected raw material classification change compelled Haleon to halt Centrum over-the-counter imports until further notice. Management confirmed that the issue does not affect product quality or safety, leaving food-registered Centrum lines completely unaffected.
The affected OTC products generated around £75 million in 2025 revenue.
Meanwhile, Haleon said it would accelerate the rollout of its optimized Brazilian go-to-market structure into the current quarter to match Brazil’s new tax framework.
Although designed to broaden customer reach and streamline supply chains, the acceleration will reduce fourth-quarter net revenue by £15 million to £20 million.
Capital Allocation And Earnings Targets
Despite lowering full-year organic growth targets, Haleon reiterated its guidance for high-single-digit adjusted operating profit growth at constant currency.
The company also anticipates net interest around £255 million, an adjusted effective tax rate near 24.5%, and broadly neutral translational foreign exchange impacts.
Management directed another £500 million to share buybacks, aiming to complete the repurchases ahead of full-year results in February.
HLN Price Action: Haleon shares were down 14.5% at $8.53 in early trading on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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