[Front Matter and Company Overview](index=1&type=section&id=Front%20Matter) [Filing Information](index=1&type=section&id=Filing%20Information) This annual report for the fiscal year ending December 31, 2024, is filed under IFRS by Haleon plc, a large accelerated filer - The report is an annual filing (Form 20-F) for the fiscal year ended **December 31, 2024**[3](index=3&type=chunk) - Haleon plc is classified as a **large accelerated filer** and a **well-known seasoned issuer**[6](index=6&type=chunk)[10](index=10&type=chunk) - The financial statements are prepared using **International Financial Reporting Standards (IFRS)** as issued by the IASB[11](index=11&type=chunk) [Haleon at a Glance](index=4&type=section&id=Haleon%20at%20a%20glance) Haleon is a global consumer health leader targeting 4-6% annual organic revenue growth and a net debt/EBITDA ratio of ~2.5x - Haleon's purpose is to deliver **better everyday health with humanity**[17](index=17&type=chunk) - The company has leadership positions in five global categories: Oral Health, VMS, Pain Relief, Respiratory Health, and Digestive Health and Other[18](index=18&type=chunk) Medium-Term Financial Guidance | Metric | Guidance | | :--- | :--- | | Annual organic revenue growth | 4-6% | | Organic operating profit growth | Ahead of organic revenue growth | | Net debt/adjusted EBITDA | Expected to be around 2.5x | | Dividend | To grow at least in line with adjusted earnings | [Strategic Report](index=5&type=section&id=Strategic%20Report) [2024 Highlights](index=6&type=section&id=2024%20highlights) Haleon achieved 5% organic revenue growth and strong cash flow in 2024, returning over £1 billion to shareholders while advancing strategic goals Key Financial Highlights 2024 | Metric | 2024 Value | 2023 Value | | :--- | :--- | :--- | | Revenue | £11.2bn | £11.3bn | | Operating Profit | £2.2bn | £2.0bn | | Operating Profit Margin | 19.6% | 17.7% | | Organic Revenue Growth | 5.0% | 8.0% | | Organic Operating Profit Growth | 9.8% | 10.8% | | Free Cash Flow | £1.9bn | £1.6bn | | Net Debt/Adjusted EBITDA | 2.8x | 3.0x | 2024 Revenue Breakdown | Breakdown | Category/Region | Revenue | Percentage | | :--- | :--- | :--- | :--- | | **By Geography** | North America | £4.0bn | 36% | | | EMEA & LatAm | £4.6bn | 41% | | | APAC | £2.6bn | 23% | | **By Market Category** | Oral Health | £3.3bn | 29% | | | VMS | £1.7bn | 15% | | | Pain Relief | £2.6bn | 23% | | | Respiratory Health | £1.7bn | 15% | | | Digestive Health and Other | £1.9bn | 18% | - The company returned **over £1 billion to shareholders** in 2024 through its first share buyback program and dividend payments[36](index=36&type=chunk) - Achieved its health inclusivity ambition to empower **50 million people a year**, one year ahead of the 2025 plan[39](index=39&type=chunk) [Chair's Statement](index=8&type=section&id=Chair's%20statement) The Chair highlighted strong progress, disciplined capital allocation, and a proposed 10% dividend increase to 6.6p per share - The company executed disciplined capital allocation, including the disposal of ChapStick and non-US Nicotine Replacement Therapy for **c.£0.8 billion** and investing **£0.5 billion** to increase its stake in the China OTC joint venture to 88%[44](index=44&type=chunk) - **Over £1 billion was returned to shareholders** through the first share buyback program and dividend payments, with a further **£500 million allocated for share buybacks in 2025**[45](index=45&type=chunk) - The Board proposes a total dividend of **6.6p per ordinary share**, a 10% increase, representing a payout ratio of approximately 37% of 2024 adjusted earnings[46](index=46&type=chunk) - New board members were appointed to add global FMCG, financial, and digital technology experience, including **Dawn Allen as CFO**[51](index=51&type=chunk) [Chief Executive Officer's Review](index=9&type=section&id=Chief%20Executive%20Officer's%20review) The CEO reported strong operational momentum, with 5% organic revenue growth and £1.9 billion in free cash flow enabling deleveraging 2024 Financial Performance Summary | Metric | Growth Rate | | :--- | :--- | | Organic Revenue Growth | 5.0% | | Reported Revenue Growth | (0.6)% | | Organic Operating Profit Growth | 9.8% | | Reported Operating Profit Growth | 10.5% | - Achieved strong free cash flow of **£1.9 billion**, allowing for debt reduction to **2.8x net debt/adjusted EBITDA**[60](index=60&type=chunk) - **71% of brands gained or maintained market share**, supported by innovations like Sensodyne Clinical White[67](index=67&type=chunk) - The outlook for 2025 includes expected **organic revenue growth of 4-6%** and organic operating profit growth ahead of revenue[65](index=65&type=chunk) [Our Business Environment](index=10&type=section&id=Our%20business%20environment) Haleon operates in a growing c.£200 billion consumer health market, driven by an aging population and a consumer shift to self-care - Haleon operates in a fast-growing, **c.£200 billion global consumer health market**[68](index=68&type=chunk) Global Market Share Position (2023) | Category | Haleon's Market Share | Haleon's Rank | | :--- | :--- | :--- | | Oral Health (Therapeutic) | ~11% (c.45% in Therapeutic) | 3 (1 in Therapeutic) | | VMS | ~3% | 1 | | Pain Relief | ~13% | 1 | | Respiratory Health | 5.6% | Joint 1 | | Digestive Health | 4.2% | 4 | - Major long-term growth drivers include a growing and aging population, an expanding middle class in emerging markets, a consumer shift towards self-care, and pressure on public healthcare systems[77](index=77&type=chunk)[78](index=78&type=chunk) [Our Business Model](index=12&type=section&id=Our%20business%20model) The business model leverages human understanding and trusted science to drive a sustainable growth cycle of revenue, profit, and cash conversion - The business model's competitive advantage stems from combining **deep human understanding with trusted science**[81](index=81&type=chunk) - The company engages with **over 3.5 million Health Professionals** who recommend its products, driving new user acquisition[85](index=85&type=chunk) - In 2024, Haleon returned **over £1 billion to shareholders** through share buybacks and dividends and invested **c.£0.5 billion** to increase its equity in its China joint venture, TSKF[92](index=92&type=chunk) [Our Key Stakeholders](index=14&type=section&id=Our%20key%20stakeholders) Haleon engages seven key stakeholder groups, using insights from these interactions to inform strategic decisions and measure outcomes - Haleon engages with seven key stakeholder groups: Consumers, Customers, Employees, Governments, Health Professionals, Investors, and Suppliers[100](index=100&type=chunk) Stakeholder Engagement Examples and Outcomes (2024) | Stakeholder | Engagement Example | Outcome Example | | :--- | :--- | :--- | | Consumers | Handled c.1.3m consumer enquiries | Consumer satisfaction (CSAT) improved 16 points | | Employees | Annual engagement survey | Employee engagement score of 81% | | Health Professionals | Haleon Health Partner portal | Reached nearly 1m health professional registrations | | Suppliers | Innovation events | Over 600 suppliers attended innovation events | [Our Strategy](index=16&type=section&id=Our%20strategy) The company's strategy focuses on increasing household penetration, capitalizing on new opportunities, and maintaining financial discipline - The strategy is based on four pillars: 1) Increase household penetration, 2) Capitalise on new and emerging opportunities, 3) Maintain strong execution and financial discipline, and 4) Run a responsible business[102](index=102&type=chunk)[107](index=107&type=chunk) - A key growth driver is **increasing household penetration** by innovating to address unmet consumer needs[103](index=103&type=chunk) - The company aims to expand its portfolio by pursuing **Rx-to-OTC switches** and entering new consumer trend areas[104](index=104&type=chunk)[107](index=107&type=chunk) - Running a responsible business is integral to the strategy, with goals focused on ESG, including **health inclusivity and environmental protection**[106](index=106&type=chunk) [Our Market Categories](index=17&type=section&id=Our%20market%20categories) Haleon drives growth across five key categories through innovation, emerging market expansion, and healthcare professional engagement [Oral Health](index=17&type=section&id=Oral%20Health) The Oral Health category, a global leader in therapeutic care, generated £3.3 billion in revenue driven by innovation and emerging market expansion Oral Health Performance | Metric | Value | | :--- | :--- | | 2024 Revenue | £3.3bn | | Global Market Share (2023) | 11% | - Successfully launched **Sensodyne Clinical White**, which ranked as the **1 innovation in the US Oral Health category** and drove market share growth[112](index=112&type=chunk) - Expanded into emerging markets with affordable products, such as the **Sensodyne 20 rupee pack in India** and the launch of parodontax in China[112](index=112&type=chunk) [Vitamins, Minerals and Supplements (VMS)](index=18&type=section&id=Vitamins,%20Minerals%20and%20Supplements%20(VMS)) The VMS category, a market leader, generated £1.7 billion in revenue by increasing penetration with tailored and affordable products VMS Performance | Metric | Value | | :--- | :--- | | 2024 Revenue | £1.7bn | | Global Market Share (2023) | 2.8% | - Expanded the Centrum range in Brazil with **affordable single-dose sachets**, introducing new consumers to the VMS category[117](index=117&type=chunk) - Launched **Emergen-C Crystals Immune+** and zero-sugar formulas in the US, contributing to category share growth[117](index=117&type=chunk) [Pain Relief](index=19&type=section&id=Pain%20Relief) The market-leading Pain Relief category generated £2.6 billion in revenue, supported by new topical product launches and professional engagement Pain Relief Performance | Metric | Value | | :--- | :--- | | 2024 Revenue | £2.6bn | | Global Market Share (2023) | 13% | - Launched **Advil Targeted Relief** in the US, the first topical pain relief product from the Advil brand[121](index=121&type=chunk) - Engaged approximately **42,000 Health Professionals** during the 4th Global Pain Awareness Week[121](index=121&type=chunk) [Respiratory Health](index=20&type=section&id=Respiratory%20Health) The Respiratory Health category, a joint market leader, generated £1.7 billion in revenue through product roll-outs and sustainability initiatives Respiratory Health Performance | Metric | Value | | :--- | :--- | | 2024 Revenue | £1.7bn | | Global Market Share (2023) | 5.6% | - Continued the successful roll-out of **Otrivin Nasal Mist** across Europe, driving share growth in launch markets[126](index=126&type=chunk) - Began rolling out new, easy-to-open, more recyclable paper packaging for Flonase, aiming to avoid **over 160 tonnes of plastic waste per year**[126](index=126&type=chunk) [Digestive Health and Other](index=21&type=section&id=Digestive%20Health%20and%20Other) This category generated £1.9 billion in revenue, highlighted by the strategic US launch of Eroxon and the divestment of its non-US Smokers' Health business Digestive Health and Other Performance | Metric | Value | | :--- | :--- | | 2024 Revenue | £1.9bn | | Global Market Share (2023) | 4.2% | - Launched **Eroxon** in the US, the first OTC, FDA-cleared treatment for erectile dysfunction[131](index=131&type=chunk) - **Divested the Smokers' Health business** outside of the US to focus resources on higher growth brands[130](index=130&type=chunk) [Our Culture and People](index=22&type=section&id=Our%20culture%20and%20people) Haleon fosters a purpose-led culture, achieving an 81% employee engagement score and maintaining strong health, safety, and ethical standards - Achieved an **81% overall employee engagement score** in 2024, an increase of 3% from 2023[63](index=63&type=chunk)[142](index=142&type=chunk) Company Gender Representation (as at 31 Dec 2024) | Level | Men | Women | Total | | :--- | :--- | :--- | :--- | | Directors | 5 | 6 | 11 | | Executive Team | 7 | 6 | 13 | | Senior managers | 773 | 653 | 1,434 | | All employees | 12,996 | 11,431 | 24,561 | Health and Safety Performance | Metric (per 100,000 hours worked) | 2024 | 2023 | | :--- | :--- | :--- | | Reportable Injury and Illness Rate | 0.13 | 0.14 | | Lost time injury and illness rate | 0.10 | 0.10 | - The company maintains a robust cyber security function, which provides frequent updates to the Executive Team and Audit & Risk Committee, with **no significant cyber-security incidents identified in 2024**[170](index=170&type=chunk) [Our Approach to Sustainability](index=26&type=section&id=Our%20approach%20to%20sustainability) The sustainability strategy focuses on health inclusivity, environmental impact, and ethics, achieving key carbon and social targets ahead of schedule Sustainability Performance vs. Targets | Aim | 2024 Performance | Target | | :--- | :--- | :--- | | People empowered (Health Inclusivity) | 50m+ | 50m by 2025 | | Net Scope 1 & 2 carbon reduction (vs 2020) | -50% | -100% by 2030 | | Scope 3 carbon reduction (vs 2022) | -10% | -42% by 2030 | | Virgin petroleum-based plastic reduction (vs 2022) | -1% | -10% by 2025 | | Recycle-ready packaging | 74% | Develop solutions for all by 2025 | - Empowered **over 50 million people** in 2024, achieving the 2025 health inclusivity target one year ahead of plan[183](index=183&type=chunk) - Achieved a **50% net reduction** in market-based Scope 1 and 2 carbon emissions versus the 2020 baseline[174](index=174&type=chunk) [Task Force on Climate-related Financial Disclosures (TCFD)](index=28&type=section&id=Task%20Force%20on%20Climate-related%20Financial%20Disclosures%20(TCFD)) Haleon's TCFD report outlines its governance and strategy for climate risks, identifying flooding and carbon pricing as key long-term challenges - The Board has overall accountability for climate-related risks and opportunities, with oversight delegated to the **Environmental & Social Sustainability (ESS) and Audit & Risk Committees**[192](index=192&type=chunk)[194](index=194&type=chunk) - Physical risk analysis identified **riverine/flash flooding and heatwaves** as the greatest long-term threats to key sites in Puerto Rico, China, and Ireland[217](index=217&type=chunk) - Transition risk analysis shows that under a 1.5°C scenario, **carbon pricing could pose a medium financial risk** if emissions targets are not met, with Scope 3 emissions being the largest exposure[238](index=238&type=chunk) - Changing consumer preferences for sustainable products represent both a medium risk and a significant opportunity, potentially adding **2.6% to revenue in 2032** under a 1.5°C scenario[242](index=242&type=chunk)[252](index=252&type=chunk) [Our Key Performance Indicators (KPIs)](index=36&type=section&id=Our%20key%20performance%20indicators) Haleon tracks strategic progress via KPIs, reporting 5% organic revenue growth, strong cash flow, and improved market share in 2024 2024 Key Performance Indicators | KPI | 2024 Result | 2023 Result | | :--- | :--- | :--- | | Organic revenue growth | 5.0% | 8.0% | | Organic operating profit growth | 9.8% | 10.8% | | Free cash flow | £1.9bn | £1.6bn | | Adjusted diluted EPS growth | 3.5% | -6.0% | | Net debt/adjusted EBITDA | 2.8x | 3.0x | | Business gained/maintained share | 71% | 58% | | Carbon reduction (Scope 1 & 2 vs 2020) | -50% | -48% | | Virgin petroleum-based plastic reduction (vs 2022) | -1% | +3% | | Employee engagement | 81% | 78% | - Executive remuneration is linked to KPIs through the **Annual Incentive Plan** and **Performance Share Plan**[282](index=282&type=chunk)[284](index=284&type=chunk)[287](index=287&type=chunk) [2024 Business Review](index=38&type=section&id=2024%20Business%20review) The 2024 business review highlights strong financial performance, active portfolio management, and significant debt reduction and shareholder returns 2024 Financial Summary | Metric | 2024 (£m) | 2023 (£m) | % Change (Reported) | | :--- | :--- | :--- | :--- | | Revenue | 11,233 | 11,302 | (0.6)% | | Operating profit | 2,206 | 1,996 | 10.5% | | Adjusted operating profit | 2,500 | 2,549 | (1.9)% | | Profit after tax (attributable to shareholders) | 1,442 | 1,049 | 37.5% | | Diluted EPS (pence) | 15.7 | 11.3 | 38.9% | | Adjusted diluted EPS (pence) | 17.9 | 17.3 | 3.5% | - **Organic revenue grew 5.0%**, driven by a combination of price (+3.7%) and volume/mix (+1.3%)[291](index=291&type=chunk)[315](index=315&type=chunk) - The company divested ChapStick and the non-US Nicotine Replacement Therapy business, raising proceeds of **£0.8 billion**[290](index=290&type=chunk) - **Net debt was reduced by £607 million to £7.9 billion**, with leverage at **2.8x net debt to adjusted EBITDA**[296](index=296&type=chunk)[297](index=297&type=chunk) [Geographical Segment Performance](index=40&type=section&id=Geographical%20segment%20performance) Haleon achieved broad-based organic growth, with EMEA & LatAm leading at 7.9%, followed by APAC at 6.0% and North America at 1.1% 2024 Organic Revenue Growth by Geography | Region | Organic Revenue Growth | Price Component | Volume/Mix Component | | :--- | :--- | :--- | :--- | | North America | 1.1% | 2.3% | (1.2)% | | EMEA & LatAm | 7.9% | 5.9% | 2.0% | | APAC | 6.0% | 1.9% | 4.1% | | **Group Total** | **5.0%** | **3.7%** | **1.3%** | 2024 Organic Operating Profit Growth by Geography | Region | Organic Operating Profit Growth | | :--- | :--- | | North America | (2.1)% | | EMEA & LatAm | 20.2% | | APAC | 12.6% | | **Group Total** | **9.8%** | [Revenue by Market Category](index=44&type=section&id=Revenue%20by%20market%20category) Oral Health and VMS led organic growth at 9.6% and 7.6% respectively, while Pain and Respiratory Health performance was muted 2024 Revenue by Market Category | Market Category | Revenue (£m) | Organic Growth (%) | | :--- | :--- | :--- | | Oral Health | 3,312 | 9.6% | | VMS | 1,696 | 7.6% | | Pain Relief | 2,564 | 0.1% | | Respiratory Health | 1,677 | 0.9% | | Digestive Health and Other | 1,984 | 5.5% | - Oral Health growth was supported by the continued roll-out of **Sensodyne Clinical White**, which was the number one US Oral Health market launch in 2024[335](index=335&type=chunk) - Respiratory Health growth was muted due to lapping strong 2023 comparatives and a **softer cold and flu season in H2 2024**, particularly in the US[349](index=349&type=chunk) [Indebtedness, Liquidity and Financial Risk Management](index=46&type=section&id=Indebtedness,%20liquidity%20and%20financial%20risk%20management) Haleon reduced its net debt to £7.9 billion, achieving a 2.8x leverage ratio while maintaining a strong liquidity position of £4.1 billion Debt and Leverage | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Borrowings | £10,127m | £9,456m | | Net Debt | £7,907m | £8,514m | | Net Debt / Adjusted EBITDA | 2.8x | 3.0x | - The Group has **total liquidity of £4.1 billion**, including £2.25 billion in cash and £1.9 billion in undrawn credit facilities[357](index=357&type=chunk) - The currency mix of net debt is primarily **USD (56%) and EUR (25%)**, aligning with the currency mix of earnings to manage foreign exchange risk[361](index=361&type=chunk)[362](index=362&type=chunk) [Use of Non-IFRS Measures](index=47&type=section&id=Use%20of%20non-IFRS%20measures) Haleon uses non-IFRS measures like 'Adjusted Results' and 'Organic Growth' to provide a clearer view of underlying business performance - Adjusted results exclude items such as net amortisation and impairment of intangible assets, restructuring costs, transaction-related costs, separation costs, and disposals[365](index=365&type=chunk)[367](index=367&type=chunk) - Organic growth measures further exclude the impact of divestments, acquisitions, and foreign currency exchange movements to allow for a year-on-year comparison of underlying performance[378](index=378&type=chunk)[379](index=379&type=chunk) Reconciliation of IFRS to Adjusted Operating Profit (2024) | Item | Amount (£m) | | :--- | :--- | | **IFRS Operating Profit** | **2,206** | | Net amortisation and impairment of intangible assets | 147 | | Restructuring costs | 214 | | Transaction-related costs | (1) | | Separation and admission costs | 30 | | Disposals and others | (96) | | **Adjusted Operating Profit** | **2,500** | [Our Approach to Risk](index=55&type=section&id=Our%20approach%20to%20risk) Haleon employs a comprehensive risk framework to manage principal risks including growth targets, supply chain, ESG, and cyber security - The Board has ultimate accountability for risk management and defining risk appetite, with oversight delegated to the **Audit & Risk Committee (ARC)**[410](index=410&type=chunk)[412](index=412&type=chunk) - Principal risks include: failure to meet growth objectives, inability to attract and retain talent, supply chain resilience, trusted ingredients, environmental, social and governance (ESG) risks, cyber security, and geopolitical instability[419](index=419&type=chunk)[422](index=422&type=chunk)[423](index=423&type=chunk)[427](index=427&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[434](index=434&type=chunk) - The risk of **cyber security threats has increased** due to a rise in global incidents, supplier exposure, and the adoption of AI tools[431](index=431&type=chunk) - **Artificial Intelligence (AI) is identified as an emerging risk**, presenting both opportunities for performance and risks related to governance, data privacy, and security[436](index=436&type=chunk) [Viability Statement](index=61&type=section&id=Viability%20statement) The Directors confirm the Group's viability over a three-year period, supported by stress testing against severe but plausible risk scenarios - The Directors assessed the company's viability over a three-year period, concluding they have a **reasonable expectation that the Group can meet its liabilities** as they fall due[439](index=439&type=chunk)[443](index=443&type=chunk) - Stress testing was performed against severe but plausible scenarios, including a **major manufacturing site shutdown**, inability to access capital markets, and a **significant product recall**[441](index=441&type=chunk)[444](index=444&type=chunk) - The Group has available mitigating actions to withstand the impact of severe risk scenarios, such as **reducing A&P spend, cutting capital expenditure, and pausing M&A**[442](index=442&type=chunk) [Corporate Governance](index=63&type=section&id=Corporate%20Governance) [Our Board of Directors and Executive Team](index=63&type=section&id=Our%20Board%20of%20Directors) Haleon's Board comprises 11 members with strong gender diversity and a broad range of consumer, international, and financial skills Board Composition (as of 6 March 2025) | Role | Count | | :--- | :--- | | Chair | 1 | | Executive Directors | 2 | | Independent Non-Executive Directors | 8 | | **Total** | **11** | - The Board demonstrates strong gender diversity, with **6 women and 5 men**[451](index=451&type=chunk) - Key skills and experience on the Board include **Consumer and Retail (10 directors)**, **International (10 directors)**, and **Finance (8 directors)**[453](index=453&type=chunk) - **Dawn Allen was appointed Chief Financial Officer** on November 1, 2024, bringing extensive global FMCG and finance experience[456](index=456&type=chunk) [Letter from the Chair (Governance)](index=68&type=section&id=Letter%20from%20the%20Chair) The Chair's letter details the Board's focus on strategy, capital allocation, and succession planning, including a £500 million share buyback - The Board visited China to better understand the market, resulting in a decision to increase Haleon's interest in its **China JV from 55% to 88%**[488](index=488&type=chunk) - After deleveraging from c.4x to c.2.8x net debt/adjusted EBITDA since demerger, the company commenced a **£500 million share buyback program** in 2024[491](index=491&type=chunk) - The company undertook its **first external Board evaluation**, conducted by Christopher Saul Associates Limited[497](index=497&type=chunk) - Key succession activities included appointing **Dawn Allen as the new CFO** and welcoming Alan Stewart and Nancy Avila as new independent Non-Executive Directors[494](index=494&type=chunk)[496](index=496&type=chunk) [Governance Structure and Board Activities](index=69&type=section&id=Governance%20structure) Haleon's governance framework ensures clear accountability, with the Board and its four committees overseeing strategy, risk, and performance - The Board's governance structure includes four primary committees: **Audit & Risk, Environmental & Social Sustainability, Nominations & Governance, and Remuneration**[500](index=500&type=chunk)[502](index=502&type=chunk) - Key Board decisions in 2024 included approving the increase in the TSKF joint venture stake in China to 88% and approving a **£500 million allocation for share buybacks**[508](index=508&type=chunk) - The Board conducted its first external performance review, which concluded that the **Board and its committees operate effectively**[539](index=539&type=chunk)[541](index=541&type=chunk) - Workforce engagement is managed through a designated Non-Executive Director, Dame Vivienne Cox, who held **five sessions with employees in 2024** and reported findings to the Board[545](index=545&type=chunk)[550](index=550&type=chunk) [Audit & Risk Committee Report](index=76&type=section&id=Audit%20&%20Risk%20Committee%20Report) The committee maintained rigorous oversight of financial reporting and internal controls, including SOX compliance and brand impairment testing - The committee's key responsibilities include overseeing financial reporting integrity, the audit process, internal controls, and risk management systems[556](index=556&type=chunk)[561](index=561&type=chunk) - A significant reporting matter considered was the recoverable amount of indefinite life brands, leading to a **£135 million non-cash impairment charge for the Nexium brand**[567](index=567&type=chunk) - The committee maintained close oversight of **SOX Section 404 compliance** and concluded that internal control over financial reporting was effective as of December 31, 2024[581](index=581&type=chunk) - The total fees paid to the external auditor, KPMG, for the year ended December 31, 2024, were **£19 million**, of which £2 million was for non-audit work[592](index=592&type=chunk) [Environmental & Social Sustainability Committee Report](index=81&type=section&id=Environmental%20&%20Social%20Sustainability%20Committee%20Report) The ESS Committee oversaw significant progress in sustainability, focusing on health inclusivity, carbon reduction, and sustainable packaging - The committee's responsibilities include overseeing progress against the ESS agenda, emerging ESS issues, stakeholder engagement, and external ESS reporting[604](index=604&type=chunk) - Conducted deep dives on key topics including **health inclusivity, sustainable packaging, carbon reduction (SBTi), and nature-related disclosures (TNFD)**[606](index=606&type=chunk) - Oversaw the publication of Haleon's first **Responsible Business Report and Climate Action Transition Plan**, and monitored readiness for CSRD[606](index=606&type=chunk)[616](index=616&type=chunk) - Reviewed and confirmed the virgin petroleum-based plastic reduction target of **10% by 2025** and the goal for all product packaging to be **recycle-ready by 2025**[609](index=609&type=chunk) [Nominations & Governance Committee Report](index=83&type=section&id=Nominations%20&%20Governance%20Committee%20Report) The committee focused on Board succession, appointing a new CFO and three Non-Executive Directors to enhance financial and digital skills - Led the appointment of **Dawn Allen as CFO** and three new Independent Non-Executive Directors: Alan Stewart, Nancy Avila, and Bláthnaid Bergin[621](index=621&type=chunk) - The Board appointment process identified needs for **enhanced digital/technical expertise** and a successor for the Audit & Risk Committee Chair[633](index=633&type=chunk)[641](index=641&type=chunk) - As of March 2025, the Board met the **FTSE Women Leaders Review recommendations** and the **Parker Review objective** for ethnic minority representation[647](index=647&type=chunk) Board Diversity Statistics (as of 6 March 2025) | Category | Board Members | % of Board | | :--- | :--- | :--- | | **Gender** | | | | Men | 4 | 36% | | Women | 7 | 64% | | **Ethnicity** | | | | White | 8 | 73% | | Asian/Asian British | 2 | 18% | | Mixed/Multiple Ethnic Groups | 1 | 9% | [Directors' Remuneration Report](index=86&type=section&id=Directors'%20Remuneration%20Report) The report outlines how pay is aligned with performance, with the 2024 AIP paying out at 58.2% and the 2022-24 PSP vesting at 76% - The 2024 Annual Incentive Plan (AIP) outcome was **58.2% of maximum for the CEO**, based on financial performance and individual objectives[655](index=655&type=chunk)[674](index=674&type=chunk) - The 2022-2024 Performance Share Plan (PSP) awards will vest at **76% of maximum**, after the Committee applied downward discretion of c.9 percentage points[656](index=656&type=chunk)[675](index=675&type=chunk) - For 2025, the AIP financial metric weightings will be rebalanced to **40% organic revenue growth and 40% organic operating profit growth**[658](index=658&type=chunk)[663](index=663&type=chunk) - Executive Director salaries will increase by **3.5% for 2025**, in line with the average increase for the UK workforce[661](index=661&type=chunk) [Annual Report on Remuneration](index=90&type=section&id=Annual%20Report%20on%20Remuneration) This section details 2024 remuneration outcomes, including a total of £9.1 million for the CEO and specific AIP and PSP vesting results 2024 'Single Figure' of Remuneration (£'000) | Executive Director | Salary | Benefits | Pension | AIP | PSP | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Brian McNamara (CEO) | 1,292 | 122 | 90 | 1,520 | 6,038 | - | 9,062 | | Tobias Hestler (Outgoing CFO) | 604 | 34 | 42 | 701 | - | - | 1,381 | | Dawn Allen (Incoming CFO) | 133 | 15 | 9 | 150 | - | 2,127 | 2,434 | 2024 AIP Performance vs. Targets | Performance Measure | Weighting | Target | Actual | Outcome (% of max) | | :--- | :--- | :--- | :--- | :--- | | Organic revenue growth | 60% | 5.3% | 5.0% | 47% | | Organic operating profit growth | 20% | 7.5% | 9.8% | 78.8% | 2022-2024 PSP Performance vs. Targets | Performance Measure | Weighting | Maximum Target | Actual Outcome | Vesting Level | | :--- | :--- | :--- | :--- | :--- | | Cumulative free cash flow | 50% | £5.557bn | £5.318bn | 82% | | Net debt/adjusted EBITDA | 50% | 2.4x | 2.6x | 88% | | **Overall Vesting (after discretion)** | **100%** | | | **76%** | [Consolidated Financial Statements](index=114&type=section&id=Consolidated%20Financial%20Statements) [Report of Independent Registered Public Accounting Firm](index=114&type=section&id=Report%20of%20independent%20registered%20public%20accounting%20firm) KPMG issued an unqualified opinion on the financial statements and internal controls, identifying the Preparation-H asset valuation as a critical audit matter - The auditor, KPMG LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting[794](index=794&type=chunk) - The identified critical audit matter was the **'Assessment of the recoverable amount for the Preparation H intangible asset'** due to the subjective and complex judgments involved[802](index=802&type=chunk)[803](index=803&type=chunk) [Consolidated Financial Statements Tables](index=121&type=section&id=Consolidated%20Financial%20Statements%20Tables) This section presents the core IFRS-compliant consolidated financial statements for Haleon plc for the year ended December 31, 2024 Consolidated Income Statement Summary (Year ended 31 December) | (£m) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Revenue | 11,233 | 11,302 | 10,858 | | Gross profit | 6,824 | 6,747 | 6,577 | | Operating profit | 2,206 | 1,996 | 1,825 | | Profit before tax | 1,910 | 1,628 | 1,618 | | Profit after tax for the year | 1,475 | 1,111 | 1,119 | | Profit attributable to shareholders | 1,442 | 1,049 | 1,060 | Consolidated Balance Sheet Summary (as at 31 December) | (£m) | 2024 | 2023 | | :--- | :--- | :--- | | Total non-current assets | 28,597 | 29,237 | | Total current assets | 5,718 | 4,818 | | **Total assets** | **34,315** | **34,055** | | Total current liabilities | (5,812) | (4,640) | | Total non-current liabilities | (12,279) | (12,686) | | **Total liabilities** | **(18,091)** | **(17,326)** | | **Net assets** | **16,224** | **16,729** | | **Total equity** | **16,224** | **16,729** | Consolidated Cash Flow Statement Summary (Year ended 31 December) | (£m) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 2,301 | 2,100 | 2,063 | | Net cash inflow/(outflow) from investing activities | 528 | (134) | (8,784) | | Net cash (outflow)/inflow from financing activities | (1,537) | (1,568) | 6,911 | | Increase in cash and cash equivalents | 1,292 | 398 | 190 | [Notes to the Consolidated Financial Statements](index=127&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies and figures, covering segment performance, intangible assets, financial risks, and legal contingencies - The financial statements are prepared on a **going concern basis**, with the Directors confident the Group can meet its requirements for at least 12 months[826](index=826&type=chunk) - A non-cash impairment charge of **£135 million was recorded for the Nexium brand** due to challenging market conditions[963](index=963&type=chunk)[964](index=964&type=chunk) - The Group is not a party to any Zantac claims and has **rejected indemnification requests from GSK and Pfizer**[1046](index=1046&type=chunk)[1047](index=1047&type=chunk) - On December 27, 2024, Haleon increased its equity interest in its China OTC joint venture (TSKF) to **88% for a consideration of £486 million**[1163](index=1163&type=chunk)[1164](index=1164&type=chunk) [Other Information](index=189&type=section&id=Other%20Information) [Directors' Report](index=191&type=section&id=Directors'%20Report) This report provides statutory information on share capital, dividends, significant shareholders, and energy and carbon reporting - The company purchased a total of **181,212,949 ordinary shares in 2024**, utilizing both on-market and off-market buyback authorities[1206](index=1206&type=chunk) Significant Shareholders (as of latest disclosure) | Shareholder | % of Issued Share Capital | | :--- | :--- | | Blackrock, Inc. | 5.22% | | Pfizer, Inc. | 7.31% | | Wellington Management Group LLP | 5.10% | 2024 Streamlined Energy and Carbon Reporting (Global) | Metric | Value | | :--- | :--- | | Total Scope 1 & 2 GHG emissions (location-based) | 192,000 tonnes CO2e | | Total net Scope 1 & 2 carbon emissions (market-based) | 48,000 tonnes CO2e | | Total energy consumed | 719 GWh | [Group Information](index=196&type=section&id=Group%20information) This section details Haleon's history, key assets, internal controls, risk factors, and material contracts like the Pfizer SAPA - Haleon was formed through the combination of the consumer healthcare businesses of GSK, Novartis (2015), and Pfizer (2019), followed by a **demerger from GSK in July 2022**[1246](index=1246&type=chunk)[1247](index=1247&type=chunk) - Management has assessed the effectiveness of internal control over financial reporting as of December 31, 2024 and concluded **it is effective**[1265](index=1265&type=chunk) - Key risk factors include operating in a **highly competitive market**, **supply chain disruptions**, dependence on key retail customers, and the ability to develop and commercialize new products effectively[1268](index=1268&type=chunk)[1273](index=1273&type=chunk)[1280](index=1280&type=chunk)[1284](index=1284&type=chunk) - The Pfizer Stock and Asset Purchase Agreement (SAPA) contains cross-indemnities, under which GSK and Pfizer have sought indemnification for OTC Zantac claims, which **the Group has rejected**[1353](index=1353&type=chunk) [Shareholder Information](index=213&type=section&id=Shareholder%20information) This section outlines key shareholder data, including differences in governance vs NYSE standards, dividend history, and tax guidance - Significant differences between Haleon's UK governance and NYSE standards exist in the **definition of director independence** and the composition of board committees[1417](index=1417&type=chunk)[1418](index=1418&type=chunk)[1419](index=1419&type=chunk) Dividend History (per ordinary share) | Year | Dividend (pence) | | :--- | :--- | | 2024 (proposed) | 6.6 | | 2023 | 6.0 | | 2022 | 2.4 | - As of December 31, 2024, **institutional and corporate holders owned 69.62% of shares**, while individuals and other bodies held 12.15%[1426](index=1426&type=chunk)

[Notification of Major Holdings (TR-1 Form)](index=1&type=section&id=TR-1%3A%20Standard%20form%20for%20notification%20of%20major%20holdings) This section outlines the TR-1 form, a standard notification for significant changes in shareholdings [Issuer and Notifying Entity Details](index=1&type=section&id=1.%20Issuer%20and%20Notifying%20Entity%20Details) This section identifies Haleon plc as the UK issuer and Wellington Management Group LLP as the US notifying party, triggered by a voting rights change - Issuer: **Haleon plc** (ISIN: GB00BMX86B70), a UK issuer[4](index=4&type=chunk) - Person subject to notification: **Wellington Management Group LLP**, registered in Boston, United States[5](index=5&type=chunk) - Reason for notification: An acquisition or disposal of voting rights[4](index=4&type=chunk) [Change in Holdings and Key Dates](index=2&type=section&id=2.%20Change%20in%20Holdings%20and%20Key%20Dates) Wellington Management Group LLP's total voting rights in Haleon plc increased from 5.10% to 5.87%, crossing the threshold on March 19, 2025 - The notification threshold was crossed on **March 19, 2025**, and the issuer was notified on **March 20, 2025**[6](index=6&type=chunk) Change in Voting Rights Position | Position | % of Voting Rights Attached to Shares | % of Voting Rights through Financial Instruments | Total Voting Rights (%) | | :--- | :--- | :--- | :--- | | **Previous Notification** | 4.740000% | 0.360000% | 5.100000% | | **Resulting Situation** | 5.510000% | 0.360000% | 5.870000% | - The total number of voting rights held after the change is **532,195,657**[6](index=6&type=chunk) [Detailed Breakdown of Holdings](index=2&type=section&id=3.%20Detailed%20Breakdown%20of%20Holdings) The 5.87% total holding comprises 5.51% indirect voting rights attached to shares and 0.36% through financial instruments like Depository Receipts Breakdown of Resulting Situation (5.87%) | Holding Type | Number of Voting Rights | % of Voting Rights | | :--- | :--- | :--- | | **Voting Rights Attached to Shares (Indirect)** | 499,089,557 | 5.510000% | | **Financial Instruments (Depository Receipt)** | 32,813,454 | 0.360000% | | **Financial Instruments (Equity Swaps)** | 292,646 | 0.000000% | - The voting rights attached to shares are held indirectly[7](index=7&type=chunk) - Financial instruments include Depository Receipts and cash-settled Equity Swaps with expiration dates extending to **2033**[9](index=9&type=chunk)[10](index=10&type=chunk) [Chain of Controlled Undertakings](index=3&type=section&id=4.%20Chain%20of%20Controlled%20Undertakings) This section details the corporate structure, identifying Wellington Management Group LLP as the ultimate controlling entity through a multi-layered chain of undertakings - The ultimate controlling entity is **Wellington Management Group LLP**[11](index=11&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) - The holdings are managed through a full chain of controlled undertakings, including **Wellington Management Company LLP**, **Wellington Management International Ltd**, **Wellington Management Hong Kong Ltd**, and **Wellington Management Europe GmbH**[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk)

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Core Viewpoint - Haleon Plc reported a slight decline in revenue for 2024, reflecting challenges in the consumer healthcare market, particularly in cold and flu product demand [1][2]. Financial Performance - Revenue for 2024 was reported at 11.23 billion pounds (US$14.19 billion), down 0.6% compared to the previous year [1]. - Adjusted operating profit for 2024 was 2.5 billion pounds, a decrease of 6.5% at constant currency [1]. - Organic revenue growth was 5.0%, driven by a 3.7% increase in price and a 1.3% increase in volume/mix, with a notable 6.8% organic growth in Q4 [1]. Segment Performance - Oral Health revenue increased by 5.6% to 3.3 billion pounds, with organic revenue growth of 9.6% [5]. - Vitamins, Minerals, and Supplements revenue rose by 3.4% to 1.7 billion pounds, with organic growth of 7.6%, including 8.2% organic growth in Q4 [5]. - Pain Relief revenue declined by 3.3%, with flat organic growth of 0.1%, totaling 2.6 billion pounds [5]. - Respiratory Health revenue decreased by 3.4% to 1.7 billion pounds, with organic revenue growth of 0.9% [5]. - Digestive Health and Other revenue fell by 7.2% to 2 billion pounds [2]. Future Guidance - The company projects organic revenue growth for 2025 to be between 4% and 6%, with expectations for growth to be weighted towards the second half of the year [3][4]. - A foreign exchange translation headwind of approximately 1.0% and 2.5% is expected to negatively impact net revenue and adjusted operating profit [3]. Market Reaction - Haleon Plc's stock (HLN) was down 4.12% at $9.78 during the premarket session [4].

Haleon plc (NYSE:HLN) Q4 2024 Earnings Conference Call February 27, 2025 4:00 AM ET Company Participants Jo Russell - Head-Investor Relations Brian McNamara - Chief Executive Officer Dawn Allen - Chief Financial Officer Conference Call Participants Guillaume Delmas - UBS David Hayes - Jefferies Rashad Kawan - Morgan Stanley Chris Pitcher - Redburn Tom Sykes - Deutsche Bank Jo Russell Good morning, everyone. Welcome to Haleon's Full Year 2024 Q&A call. I'm Jo Russell, Head of Investor Relations. And I'm join ...

2024 Full year results February 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 condit ...

Marketing Campaign - TUMS has partnered with DraftKings to launch the TUMS Fantasy Foodball Pool, a free-to-play game where participants can win a share of $40,000 in cash prizes by selecting their top six food and drink choices from a menu of 36 items [1] - The campaign features food-related themes such as Tailgate Foods, Spicy Foods, Sweet Foods, and New Orleans Foods, aligning with the Big Game season [6] - TUMS has collaborated with former professional football champion Vince Wilfork, who shares his personal experience with heartburn relief and promotes the brand [2][3] Consumer Insights - A survey of 2,000 Americans revealed that 54% believe gameday food is crucial to the overall experience, with barbecue (34%), hot wings (33%), and seven-layer dip (24%) being the top three most popular foods [1] - 1 in 4 survey respondents cited heartburn as a potential outcome of enjoying gameday foods, and 1 in 3 hope their host has an antacid on hand [1] Product Promotion - TUMS Chewy Bites and Gummy Bites are highlighted as effective solutions for occasional heartburn, sour stomach, acid indigestion, and upset stomach relief [6][7] - The company emphasizes that TUMS is the 1 recommended antacid brand by doctors, pharmacists, and OBGYNs, and is America's 1 antacid with a variety of flavors and formats [7] Event Activation - TUMS will host an event in New Orleans during Big Game Weekend at Bourbon Heat on Feb 7, offering samples of TUMS Chewy Bites, exclusive merchandise, and giveaways, while also promoting the final round of the TUMS Fantasy Foodball Pool [4] Brand Collaboration - DraftKings and TUMS are continuing their successful partnership, leveraging the popularity of food during football watch parties to engage fans with a competitive and interactive experience [4]

Core Insights - Haleon has appointed Joe Sta-Romana as Chief Customer Officer for its US business, effective December 1, 2024, to lead customer strategy and drive growth in the US market [1][2]. Leadership Experience - Joe Sta-Romana brings over 20 years of experience in the FMCG sector, having previously led Unilever's Walmart business and held significant roles at P&G and Unilever, focusing on sales and category management [2][3]. Strategic Focus - The new CCO will implement customer-focused strategies, utilizing improved data analytics and digital solutions to enhance partnerships with key retailers, ensuring Haleon remains a trusted partner [3][4]. Company Vision - Haleon's mission is to deliver better everyday health with humanity, emphasizing the importance of understanding customer challenges to provide tailored solutions [4][5]. Product Portfolio - Haleon operates in six major categories: Oral Health, Pain Relief, Respiratory Health, Digestive Health, Wellness, and Sexual Wellness, with a diverse range of well-known brands [5].

Core Insights - Haleon has selected Vistar Media as its preferred partner for programmatic out-of-home (OOH) advertising, emphasizing the strategic importance of digital OOH in its media strategy [1][2] - The partnership aims to leverage Vistar's advanced technology and demand-side platform (DSP) to execute data-driven and personalized OOH campaigns globally, reflecting Haleon's commitment to quality, transparency, and sustainability [2][3] Company Overview - Haleon is a global leader in consumer health, focusing on delivering better everyday health with a diverse product portfolio that includes Oral Health, Pain Relief, Respiratory Health, Digestive Health, and Vitamins, Minerals, and Supplements (VMS) [7] - The company is known for its longstanding brands such as Sensodyne, Panadol, Otrivin, Polident, Corsodyl, and Centrum, which are built on trusted science and innovation [7] Partnership Details - The collaboration with Vistar Media allows Haleon to enhance its global media presence and connect with consumers in a premium OOH environment [4] - Vistar Media's programmatic capabilities, combined with Publicis' expertise, enable Haleon to deliver impactful campaigns while aligning with its sustainability goals [3][4] Vistar Media Overview - Vistar Media is recognized as a leading provider of technology solutions for OOH media, offering a comprehensive platform for buying and selling OOH advertising [5][6] - The company operates in over 30 countries and provides a full suite of platforms, including demand-side and supply-side solutions, to facilitate OOH transactions [6]

Financial Data and Key Metrics Changes - Organic revenue growth was reported at 6.1%, with a balance between price (3.3%) and volume/mix (2.8%) [6][10] - Organic profit growth for the quarter was 7.4%, leading to a year-to-date organic profit growth of 9.7% [7][32] - Reported revenue declined by 0.6% due to net M&A headwinds and foreign exchange impacts [12][11] Business Line Data and Key Metrics Changes - Oral Health revenues grew by 8.2% in the quarter, driven by strong performance from Sensodyne and parodontax [15] - VMS (Vitamins, Minerals, and Supplements) grew by 3.7%, with Centrum facing tough comparatives from the previous year [16] - Pain Relief returned to growth at 3.1%, while Respiratory Health saw a 9.1% increase [17][18] Market Data and Key Metrics Changes - North America experienced organic revenue growth of 4.8%, with significant contributions from Oral Health and Pain Relief [19] - Europe, Middle East, Africa, and Latin America saw organic revenue growth of 6.1%, driven by pricing strategies [21] - Asia Pacific reported an 8.2% increase in organic revenue, with double-digit growth in China [25][28] Company Strategy and Development Direction - The company is focused on optimizing its portfolio through active brand management and has increased its stake in the China joint venture [8][30] - Capital allocation priorities include investing in brand growth, completing share buybacks, and pursuing strategic M&A opportunities [33][41] - The company aims to achieve organic revenue growth of 4% to 6% and high-single-digit organic profit growth for the full year [36][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year guidance despite foreign exchange headwinds and uncertainties in cold and flu season performance [9][37] - The company is prepared for the cold and flu season with healthy sell-in and expects continued market share gains [54][80] - Management highlighted the importance of maintaining a balance between price and volume growth moving forward [13][88] Other Important Information - The company raised approximately £900 million in bonds to refinance maturing debt, indicating strong demand for its financial instruments [9] - The company has returned over £1 billion to shareholders through dividends and share buybacks this year [41] Q&A Session Summary Question: Outlook for 2024 and key sources of uncertainty - Management is confident in achieving FY 2024 guidance, with cold and flu season and foreign exchange being noted as uncertainties [48][50] Question: VMS business slowdown - The deceleration in VMS is attributed to tough comparatives for Centrum, with expectations for a sequential pickup in Q4 [49][56] Question: FX leverage effects - FX impacts were noted as an outlier in Q3, with expectations for smaller effects in Q4 [58][59] Question: China OTC business visibility - The company has been operationally running the China OTC business and is focused on integrating field forces post-acquisition [62] Question: Performance of Panadol - Panadol is maintaining market share despite a normalization of demand following a tripledemic last year [65][68] Question: Eroxon launch and retailer uptake - Eroxon has seen good retailer uptake, with distribution above 80% among major customers, and advertising efforts are underway [70][72]