Haleon 2025-26: Org +3%, FY26 +3-5%, U.S. Returns to Growth
FY25 (GBP) revenue £10.79B (-4% reported); Op income £2.42B (+10%); NI £1.63B (+13%); EPS £0.36 (+13%). Organic sales +3% FY25. U.S. -0.5%; APAC + EMEA/LatAm mid-single-digit. 60% of business gained or maintained share. Reorganized: 6 operating units replacing 3 regions; new Chief Growth Officer role. FY26 organic guide +3-5%, U.S. expected to return to growth. Medium-term ambition 4-6%.
Key takeaways
- +3% FY25 organic growth (vs reported -4% on FX + portfolio). Solid for a mature consumer health company. Oral Health franchise + emerging markets carrying.
- U.S. -0.5% drag — turning in FY26. Q2 shelf resets + new leadership + innovation expected to return U.S. to growth. Mgmt confidence on the ramp.
- APAC + EMEA/LatAm mid-single-digit growth. India double-digit + accelerating; China mid-single-digit with Tmall + Douyin strong. Emerging market premiumization driving.
- Major reorganization announced. 6 operating units replacing 3 regions; new Chief Growth Officer role combining category structure, marketing, insights, analytics, commercial excellence. Brings sharper accountability + faster decision-making.
- FY26 organic guide +3-5%, medium-term 4-6%. Mgmt expects to be in middle of medium-term range based on current visibility. Categories supportive (premiumization, low-income consumer opportunity).
Business
Haleon plc is the world's largest consumer health company, formed by 2022 spin-off from GSK. Five product franchises:
- Oral Health (~30% of revenue): Sensodyne + Parodontax + Aquafresh + Polident/Poligrip + Pronamel. Largest + highest-growth franchise FY25.
- VMS (Vitamins, Minerals, Supplements) (~20% of revenue): Centrum + Caltrate + Emergen-C + others. Vitamin/supplement category.
- Pain Relief (~20% of revenue): Advil + Voltaren + Panadol + Excedrin. Branded analgesics.
- Respiratory Health (~15% of revenue): Theraflu + Robitussin + Otrivin. Cold + flu + cough.
- Digestive Health + Other (~15% of revenue): Tums + Centrum + Sensodyne + assorted.
Geographic mix:
- North America (~35%) — soft in FY25, returning in FY26
- Europe (~25%) — modest growth
- Asia Pacific (~25%) — strongest growth
- LatAm + EMEA (~15%)
Strategic positioning: dominant consumer health with multiple #1 or #2 brands per category. Premiumization + emerging markets + e-commerce/digital the structural levers.
FY25 financial performance (GBP)
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue (£B) | 11.30 | 11.23 | 10.79 |
| Gross profit (£B) | 6.96 | 6.95 | 6.99 |
| Op income (£B) | 2.00 | 2.21 | 2.42 |
| Op margin | 17.7% | 19.6% | 22.4% |
| EBITDA (£B) | 2.35 | 2.51 | 2.77 |
| Net income (£B) | 1.05 | 1.44 | 1.63 |
| Diluted EPS (£) | 0.24 | 0.32 | 0.36 |
| FCF (£B) | 1.76 | 2.05 | 1.97 |
| Capex (£M) | -336 | -250 | -315 |
| Total debt (£B) | 9.46 | 10.10 | 8.59 |
| Dividends (£M) | -388 | -570 | -599 |
| Buyback (£M) | -38 | -121 | -640 |
The earnings print: Reported revenue -4% on FX + portfolio rationalization, but organic +3%. Op margin expanded 280bp to 22.4% — significant operating leverage on cost discipline + mix.
Buyback expanded materially to £-640M FY25 (vs £-121M FY24). Total debt down to £8.59B (-£1.5B YoY) — meaningful deleveraging.
Capital allocation
- Capex: -£315M FY25 (2.9% of revenue). Capital-light consumer products.
- Dividends: -£599M FY25 (+5% YoY).
- Buybacks: -£640M FY25 (~5× FY24). Material acceleration.
- M&A / Divestitures: Smaller portfolio actions; no major.
- Debt management: £8.59B (-£1.5B YoY) — significant paydown.
FY26 outlook (per Q4 2025 call, 2026-02-25)
| FY26 + Medium-Term | Direction |
|---|---|
| FY26 organic sales growth | +3% to +5% |
| U.S. organic | Return to growth |
| Medium-term organic ambition | 4-6% (expecting middle) |
| Q2 U.S. shelf resets | Distribution + innovation |
| Geographic + category drivers | Emerging markets premiumization, low-income consumer opportunity |
The +3-5% guide is conservative-to-realistic; the 4-6% medium-term ambition is the structural rate. Mgmt explicitly expects middle of medium-term range as confidence builds.
Key risks
- U.S. recovery execution: Q2 shelf resets must deliver. New leadership + innovation pipeline material.
- Currency: GBP-reported but multi-currency revenue. Major FX impact on reported.
- Category cyclicality: Cold + flu + respiratory category seasonality.
- Competition: Procter & Gamble + Reckitt + others competing in OTC + oral care + vitamins.
- Commodity inputs: Packaging, ingredients, freight. Pass-through generally works but with lag.
- Regulatory: Pharma-OTC rules vary by geography; product safety + quality discipline material.
Bottom line
HLN FY25 is the +3% organic growth + reorganization + U.S. soft year. Op margin +280bp to 22.4%, EPS +13%, total debt -£1.5B. FY26 organic +3-5% with U.S. returning to growth + APAC continuing + medium-term 4-6% ambition. Risks are U.S. execution + FX + category cycle + competition. Quality consumer health franchise with structural market positions.
Citations
- Haleon plc FY25 Annual Report (filed February 2026, UK FCA + SEC 20-F).
- Haleon Q4 2025 earnings call, 2026-02-25 — organic +3% FY25 (U.S. -0.5%, APAC + EMEA/LatAm mid-single-digit), 60% of business gained/maintained share, Oral Health strong, India double-digit + China mid-single-digit; reorganization (6 operating units, new Chief Growth Officer); FY26 organic +3-5%, U.S. return to growth, medium-term 4-6% ambition.
- Internal financial_statements view (consolidated annual + cash flow + capital structure; reflects GBP reporting).