Haleon has raised its forecast for annual organic revenue growth, as the consumer healthcare company is confident that demand for its oral and respiratory health products will stick despite a cost-of-living squeeze.
Consumers prioritising money towards essential, daily-use products amid the cost-of-living crisis in some parts of the world boosted sales for companies such as Haleon, which spun off from British drugmaker GSK last year.
U.S.-based rival Kenvue, the former consumer health unit of Johnson & Johnson, forecast full-year profit above market estimates in July.
Haleon, the world's largest standalone consumer healthcare firm, said its full-year organic revenue growth is now expected to come in at 7% to 8%, compared with an earlier forecast of the top-end of a 4% to 6% range.
Analysts on average expect growth of 6.2%, according to company-compiled estimates.
Haleon's organic revenue growth for the six-month period ended June 30 was 10.4%, beating analysts' expectations of 8.2%.
Its 'Power Brands' portfolio reported organic growth of 10.1% in the period, with Sensodyne, parodontax, Panadol, Denture Care and Otrivin among the stand-out brands, it noted.
”One year from listing, we are very pleased with Haleon’s first half results," commented Brian McNamara, chief executive. "We delivered double digit organic revenue growth, with both price and positive volume mix. Encouragingly, this trend was consistent across the first and second quarters. Our growth was also broad based across regions and categories."
McNamara added that more than half (55%) of the business either gained or maintained share in the first half, "reiterating the resilience of the brand portfolio".
Additional reporting by ESM