Financial Data and Key Metrics Changes - The company reported a gross margin improvement of 160 basis points, contributing to strong cash flow and organic profit growth [7][19] - A&P (Advertising and Promotion) spending increased by 6.8% to 20.8% in the first half of the year, reflecting a strategic focus on growth drivers [19][21] - The company expects high single-digit operating profit growth for the year, driven by gross margin opportunities [55][78] Business Line Data and Key Metrics Changes - North America experienced a nearly 2% organic sales growth decline, attributed to a challenging consumer environment and inventory pressures [4][8] - Strong growth and market share gains were noted in oral health and digestive health brands, while pain relief and VMS (Vitamins, Minerals, and Supplements) showed mixed performance [11][12] - Centrum faced challenges in the U.S. market, with declines despite strong growth outside the U.S. [13][14] Market Data and Key Metrics Changes - EMEA, Latin America, and APAC markets performed well, with organic sales growth within the medium-term guidance of 4% to 6% [4][8] - Volume growth in EMEALATAM accelerated from 0.5% in Q1 to 1.6% in Q2, while Asia Pacific saw an increase from 3.3% to 3.9% [47][50] - The U.S. market showed a decline in volume, down 1.8% in Q2, impacting overall performance [48][49] Company Strategy and Development Direction - The company remains committed to its medium-term guidance of 4% to 6% growth, despite current challenges in the U.S. market [45][50] - Strategic investments are focused on supply chain productivity, innovation, and expanding access to lower-income consumers [18][39] - The company plans to continue its innovation-led premiumization strategy while addressing core business challenges [40][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging consumer environment in North America, with expectations of continued inventory pressures [8][16] - The company is optimistic about returning to growth in 2026, supported by new leadership and strategic initiatives [49][50] - Management expressed confidence in the resilience of the European market, particularly in oral health [52][53] Other Important Information - The nicotine replacement therapy business is a significant but challenging category, with a complex ownership structure impacting innovation [73][75] - The company is actively managing inventory levels with retailers to navigate the current economic environment [15][28] Q&A Session Summary Question: North America's performance and future growth expectations - Management noted that North America faced a nearly 2% decline in organic sales growth due to a challenging consumer environment and inventory pressures, with expectations for gradual recovery [4][8][16] Question: A&P spending and areas of reinvestment - A&P spending increased significantly, with a focus on driving growth through innovation and reaching lower-income consumers [19][21] Question: Share performance and competitive pressures - The decline in the percentage of business gaining or maintaining share was attributed to challenges with key brands like Advil and Centrum, with plans in place to stabilize performance [30][32] Question: Retailer environment and channel dynamics - Management discussed the impact of retailer destocking and channel shifts, particularly in the U.S. market, and emphasized the need to adapt to these changes [28][86] Question: Outlook for specific product categories - Management provided insights on the performance of Advil, Smoker's Health, and Centrum, highlighting ongoing challenges and upcoming innovations [60][66][68]

Financial Data and Key Metrics Changes - The company reported a decline in organic sales growth in North America of nearly 2% in Q2, contrasting with growth in EMEA, LatAm, and APAC, which were within the medium-term guidance of 4% to 6% [3][5][14] - Gross margin improved by 160 basis points, contributing to strong cash flow and organic profit growth [5][15] - A&P (Advertising and Promotion) spending increased by 6.8% to 20.8% in the first half of the year, reflecting a focus on growth drivers [16][19] Business Line Data and Key Metrics Changes - In North America, consumption grew slightly ahead of the market, with a 0.5% increase compared to a market decline of 0.5% [9][10] - Oral health and digestive health brands showed strong growth, with market share gains in brands like Tons and Benefiber [9][10] - Centrum experienced mid-single-digit growth outside the US but saw declines in the US, while Emergency brand continued to perform well [11][12] Market Data and Key Metrics Changes - The US market is facing challenges with low consumer confidence and inventory pressures, impacting overall performance [6][8][14] - EMEA and APAC regions showed positive trends, with volume growth accelerating in Q2 [47][51] - Central Europe reported high single-digit growth, while Western Europe experienced mid-single-digit growth, driven by strong performance in oral health [53][54] Company Strategy and Development Direction - The company remains committed to its medium-term guidance of 4% to 6% organic sales growth despite current challenges in the US market [49][56] - Focus on innovation and premiumization, particularly in key markets like India and Brazil, is part of the strategic plan [39][40] - The company aims to close the incidence treatment gap and expand reach to lower-income consumers while maintaining investment in A&P and R&D [16][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging consumer environment in the US, with expectations of continued inventory pressure and no significant improvement anticipated in the near term [14][22] - Confidence in the medium-term outlook remains strong, with expectations for improved performance in 2026 [49][56] - The company is actively managing its portfolio and focusing on driving market growth despite external challenges [36][41] Other Important Information - The nicotine replacement therapy (NRT) business is a significant part of the portfolio, with a complex ownership structure affecting innovation and growth [73][75] - The company expects a high single-digit growth in operating profit, supported by gross margin improvements and effective cost control [77][78] Q&A Session Summary Question: North America's performance and future growth expectations - Management noted that North America faced challenges due to a difficult consumer environment and inventory pressures, with expectations for a gradual return to growth [3][22][25] Question: A&P spending and areas of reinvestment - A&P spending increased significantly, with a focus on driving growth in key markets and improving ROI [16][19] Question: Share performance and competitive pressures - The decline in the percentage of business gaining or maintaining share was attributed to challenges with brands like Advil and Centrum, with plans in place to stabilize performance [28][30] Question: Impact of nicotine replacement therapy on growth - The NRT business had a significant impact on overall growth, with expectations for less decline in the second half of the year [76][80] Question: Channel shifts and inventory management - Management discussed the impact of channel shifts, particularly towards e-commerce, and the need for effective inventory management across channels [86][90]

2025 Half year results July 2025 Disclaimer This presentation contains certain statements that are, or may be deemed to be, "forward-looking statements" (including for purposes of the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Forward-looking statements give Haleon's current expectations and projections about future events, including strategic initiatives and future financial condition ...

Group 1 - Haleon has completed the acquisition of the remaining 12% stake in China-SK Pharmaceutical Co., Ltd, marking the end of a nearly 40-year joint venture with a total transaction value of 1.623 billion yuan [1][2] - The joint venture, established in 1984, was set to last until June 30, 2025, but the lifting of foreign ownership restrictions in China allowed Haleon to take full control [2] - The separation signifies a shift in the business landscape, as joint ventures have become less adaptable to the evolving strategies of multinational pharmaceutical companies [1][3] Group 2 - China-SK has been a significant player in the Chinese pharmaceutical market, focusing on pain management, respiratory health, skin health, and digestive health, with well-known brands such as Fenbid and New Contac [3][4] - Following the acquisition, Haleon plans to enhance its development strategy for China-SK, leveraging its strong brand portfolio and established sales network while investing in product lines based on consumer demand [4][5] - China is a key market for Haleon, driving global growth and enhancing brand competitiveness, with the acquisition seen as a major milestone in deepening its commitment to the Chinese market [5]

Group 1 - Haleon has completed the acquisition of the remaining 12% stake in its OTC joint venture, China-SK Pharmaceutical Co., Ltd., making it a wholly-owned subsidiary [1] - The acquisition signifies Haleon's commitment to the Chinese market, which is crucial for driving global growth and enhancing brand competitiveness [1] - China-SK has a strong historical presence and is recognized for its brands in pain management, respiratory health, skin health, and digestive health [1] Group 2 - Haleon aims to enhance daily health with its mission and will continue to support the innovation and development of OTC products in China [2] - The company plans to deepen its channel layout to reach a broader consumer base with its health products and services [2] - Haleon's product portfolio includes six core categories: oral health, nutritional health, pain management, respiratory health, digestive health, and skin health [3]

Core Insights - The article compares Haleon PLC Sponsored ADR (HLN) and Stryker (SYK) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Earnings Outlook - Haleon PLC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Stryker has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that HLN's earnings outlook is improving more significantly than SYK's [3][7] Group 2: Valuation Metrics - HLN has a forward P/E ratio of 21.28, compared to SYK's forward P/E of 29.60, indicating that HLN may be undervalued relative to SYK [5] - The PEG ratio for HLN is 2.92, while SYK's PEG ratio is 2.98, suggesting that HLN's expected earnings growth is more favorable [5] - HLN's P/B ratio is 2.24, significantly lower than SYK's P/B of 7.21, further supporting HLN's valuation as more attractive [6] - Based on these metrics, HLN receives a Value grade of B, while SYK is rated D, indicating a stronger value proposition for HLN [6]

Core Viewpoint - Haleon PLC Sponsored ADR (HLN) has experienced significant selling pressure, resulting in a 7.4% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if HLN is oversold, with a reading of 25.05 suggesting that heavy selling may be exhausting, indicating a possible price rebound [2][5]. - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify potential reversal points, making it a useful tool for investors seeking entry opportunities [3]. Group 2: Fundamental Indicators - There is a consensus among sell-side analysts that earnings estimates for HLN have increased by 0.3% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - HLN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

Group 1 - Haleon has appointed Carl Haney as Chief Research & Development Officer, effective August 1, 2025, following Franck Riot's departure after six years [1][2] - Carl Haney brings 13 years of experience from Estée Lauder and over 20 years from Procter & Gamble, focusing on innovation and R&D in consumer businesses [1][2] - The CEO of Haleon, Brian McNamara, expressed confidence in Haney's ability to drive transformative innovation and contribute to the company's new "Win as One" strategy [2][3] Group 2 - Franck Riot's contributions to Haleon were acknowledged, particularly in advancing the innovation agenda during the company's transition [3] - Carl Haney expressed enthusiasm about joining Haleon at a pivotal time, emphasizing the importance of R&D in achieving the company's goals of enhancing everyday health [3] - Haleon is positioned as a global leader in consumer health, with a diverse product portfolio across six major categories, including Oral Health and Pain Relief [4]

Core Insights - A recent survey indicates that over 80% of Canadians desire whiter teeth, but sensitivity and cost are significant barriers [1][2] - Many Canadians are turning to alternative whitening methods popularized on TikTok, with 40% using options like baking soda and activated charcoal, but 46% report increased sensitivity as a result [2] - There is a clear demand for affordable, convenient, and sensitivity-friendly whitening solutions, particularly with National Smile Day approaching [3] Company Insights - Sensodyne, a leading brand for sensitive teeth, has introduced Clinical White toothpaste, which is designed to provide effective whitening while protecting sensitive teeth [4][5] - Clinical White is clinically proven to whiten teeth up to two shades and offers 24/7 sensitivity protection without hydrogen peroxide, making it suitable for daily use [5][6] - The product is positioned as an ideal solution for consumers who enjoy coffee and red wine but want to maintain a bright smile without discomfort [6] Market Context - The survey highlights that sensitivity is the primary concern for 20% of Canadians when considering teeth whitening options [4] - Despite the availability of dentist-administered whitening treatments, only 26% of Canadians have tried them due to concerns about cost and sensitivity [2] - Sensodyne's Clinical White is launched just in time for National Smile Day, aiming to meet the demand for a pain-free whitening solution [6]

Core Insights - The article emphasizes the importance of identifying undervalued companies with strong fundamentals and growth potential, focusing on rigorous value investing strategies [1] Group 1: Investment Strategy - The company employs a value investing approach that combines thorough fundamental analysis with a focus on companies trading significantly below their intrinsic value [1] - Priority is given to businesses with robust cash flows, strong balance sheets, and competent management teams [1] - A long-term investment horizon is maintained to allow investment theses to materialize [1] Group 2: Goals and Outcomes - The aim is to generate superior risk-adjusted returns through disciplined research and patience [1] - The strategy is designed to help followers build lasting wealth through strategic value investments in quality businesses [1]