Core Viewpoint - Haleon plc reported a strong performance in Q3 2024, with organic revenue growth driven by market execution and share gains from its brand portfolio [5]. Revenue Performance - Organic revenue growth was 6.1%, with contributions from both price and volume mix [5]. - The company's Power Brands achieved a growth rate of 5.4% [5]. Financial Details - The conference call included discussions on group profit and margin details, both reported and adjusted, with a full reconciliation provided in the appendix [4].

Core Insights - Haleon PLC Sponsored ADR (HLN) has a stronger Zacks Rank of 2 (Buy) compared to Insulet (PODD) which has a Zacks Rank of 3 (Hold) indicating a more favorable earnings outlook for HLN [3] - Value investors utilize various traditional metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - HLN has a forward P/E ratio of 22.43, significantly lower than PODD's forward P/E of 76.64, suggesting that HLN may be undervalued relative to its earnings potential [5] - The PEG ratio for HLN is 3.08, while PODD's PEG ratio is 4.35, indicating that HLN's expected earnings growth is more favorable when adjusted for its price [5] - HLN's P/B ratio stands at 2.28, compared to PODD's P/B of 16.32, further highlighting HLN's relative valuation advantage [6] - Based on these valuation metrics, HLN holds a Value grade of B, while PODD has a Value grade of D, suggesting that HLN is the more attractive option for value investors [6]

[Haleon plc: Proposed Off-Market Purchase Alongside Pfizer Inc. Offering](index=1&type=section&id=Haleon%20plc%3A%20Proposed%20off-market%20purchase%20alongside%20Pfizer%20Inc.%20offering) Haleon plc plans an off-market share purchase from Pfizer Inc., allocating shares for its 2024 buyback program and 2025 employee share plans, contingent on Pfizer's offering [Transaction Overview](index=1&type=section&id=1.1%20Transaction%20Overview) Haleon plc agreed to an off-market purchase of its shares from Pfizer Inc. for approximately £230 million, contingent on Pfizer's accelerated bookbuild offering - Pfizer Inc. announced a proposed offering of Haleon plc ordinary shares to institutional investors through an accelerated bookbuild process[5](index=5&type=chunk) Haleon's Off-Market Purchase Details | Parameter | Details | | :--- | :--- | | **Total Purchase Value** | Approximately £230 million | | **Seller** | Pfizer Inc. | | **Condition** | Subject to completion of Pfizer's Proposed Offering | | **Purchase Price** | Equal to the offering price per share in Pfizer's Proposed Offering | [Allocation and Purpose of Purchased Shares](index=1&type=section&id=1.2%20Allocation%20and%20Purpose%20of%20Purchased%20Shares) The £230 million worth of shares purchased from Pfizer are allocated for completing the 2024 share buyback program and satisfying 2025 employee share plan obligations Breakdown of Share Purchase Allocation | Purpose | Amount | Share Treatment | | :--- | :--- | :--- | | **2024 Share Buyback Program** | ~£114.6 million | To be cancelled | | **2025 Employee Share Plans** | ~£115.4 million | To be held as treasury shares | [Impact on Share Buyback Programme](index=1&type=section&id=1.3%20Impact%20on%20Share%20Buyback%20Programme) This off-market transaction fulfills the remaining 2024 share buyback allocation, leading to the termination of Haleon's on-market share buyback program - The purchase represents the remainder of the **£500 million** allocated to share buybacks in 2024[7](index=7&type=chunk) - Haleon intends to cancel these ordinary shares and end its on-market share buyback programme that was launched on August 1, 2024[7](index=7&type=chunk) [About Haleon](index=2&type=section&id=About%20Haleon) Haleon is a global consumer health leader with a diversified product portfolio across five major categories and established brands [Company Profile](index=2&type=section&id=2.1%20Company%20Profile) Haleon is a global leader in consumer health, offering a diversified product portfolio across five major categories with well-established brands - Haleon's product portfolio spans five major categories: Oral Health, Pain Relief, Respiratory Health, Digestive Health and Other, and Vitamins, Minerals and Supplements (VMS)[11](index=11&type=chunk) - Its portfolio includes long-standing brands such as Advil, Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident, parodontax and Centrum[11](index=11&type=chunk)

Core Insights - PubMatic has launched a new collaborative approach to supply path optimization (SPO) for Haleon, aiming to enhance efficiency and sustainability in digital advertising [1][2] - Haleon has selected PubMatic as a preferred supply partner to streamline access to video, display, and connected TV (CTV) inventory globally [2][3] - The partnership focuses on maximizing commercial efficiency, transparency, and data-driven insights while reducing carbon emissions related to Haleon's media investments [3][4] Company Overview - PubMatic is an independent technology company that delivers digital advertising's supply chain of the future, empowering digital content creators to control access to their inventory and increase monetization [5] - Haleon is a global leader in consumer health, with a diverse product portfolio that includes categories such as Oral Health, Pain Relief, and Vitamins, Minerals, and Supplements (VMS) [6]

Core Insights - Eroxon® is the first and only FDA cleared over-the-counter gel for erectile dysfunction (ED) available without a prescription, now available for pre-order and set to launch in October 2024 [1][7] - Clinical studies demonstrate that Eroxon® is safe and effective, providing results within 10 minutes, addressing a significant unmet need compared to existing prescription solutions that may take up to an hour [2][3] Product Details - Eroxon® stimulates nerve endings in the penis to help men achieve and maintain an erection, enhancing intimacy and connection in relationships [3][4] - The application process involves massaging the gel onto the head of the penis, which can be done by the user or their partner as part of foreplay [4] Market Context - Erectile dysfunction affects approximately 30 million men in the U.S., with prevalence increasing with age; half of men over 40 experience ED [6] - Haleon aims to make Eroxon® accessible to millions of men affected by ED, emphasizing the importance of sexual health as part of overall wellness [4][8]

HALEON 2024 Half year results August 2024 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 c ...

Interim results announcement Six months ended 30 June 2024 1 August 2024 2024 Half year results Six months ended 30 June 2024 (unaudited)1 Improving growth momentum in Q2; with strong performance in Oral Health and VMS Increased H1 24 operating profit driven by operating leverage Strong cash flow supporting shareholder returns Continued evolution into a more agile consumer health organisation Updating guidance for FY2024 and confident of delivery on medium term guidance 1 ● H1 reported revenue declined 0.8% ...

Core Insights - Haleon PLC Sponsored ADR (HLN) is currently rated as a 2 (Buy) by Zacks, indicating a positive earnings outlook, while LeMaitre Vascular (LMAT) holds a 3 (Hold) rating, suggesting a less favorable position for value investors [2][5]. Valuation Metrics - HLN has a Price-to-Book (P/B) ratio of 1.94, significantly lower than LMAT's P/B ratio of 6.33, indicating that HLN may be undervalued compared to LMAT [4]. - The forward Price-to-Earnings (P/E) ratio for HLN is 18.78, while LMAT's forward P/E ratio is considerably higher at 49.05, further suggesting that HLN presents a more attractive valuation [8]. - HLN's PEG ratio stands at 2.50, compared to LMAT's PEG ratio of 2.65, indicating that HLN's expected earnings growth is more favorable relative to its price [8]. Value Grades - Based on various valuation metrics, HLN has received a Value grade of B, while LMAT has been assigned a Value grade of D, highlighting HLN's superior position for value investors [9].

Financial Data and Key Metrics Changes - The company reported revenue of £2.9 billion, reflecting a 3% organic revenue growth, with adjusted operating profit of £707 million, up 12.8% on an organic basis [28][29][60] - The operating margin improved to 24.2%, up 110 basis points on a reported basis and up to 120 basis points organically [29][63] - Gross profit increased by 5% organically, contributing to strong growth in advertising and promotion (A&P) spending [28][63] Business Line Data and Key Metrics Changes - VMS revenue grew by 9.9%, with strong performance from Centrum and Emergen-C, while pain relief revenue declined by 4.8% due to tough comparatives [30][31] - Oral Care experienced a significant growth of 10.6%, driven by successful product launches and innovation [13][30] - Health revenues increased by 10.6%, with double-digit growth in key markets like China [60] Market Data and Key Metrics Changes - North America saw an organic revenue decline of 3.3%, with a positive price increase of 4.5% but a volume/mix decline of 7.8% [31][58] - Emerging markets, which account for 36% of revenue, achieved 7.7% organic revenue growth, while developed markets grew only 0.5% organically [61] - Asia-Pacific reported a 3.3% organic revenue increase, with balanced contributions from price and volume/mix [21][61] Company Strategy and Development Direction - The company is focused on becoming more agile and competitive, with ongoing productivity programs expected to deliver significant savings and support growth [17][22] - Plans for the closure of the Maidenhead manufacturing facility were announced, with an expected restructuring cost of around £90 million over the next two years [22][59] - The company aims to balance pricing and volume growth, with expectations for a gradual improvement in volume growth throughout the year [10][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance of 4% to 6% organic revenue growth, despite challenging comparatives [9][101] - The operating environment is stabilizing, with improved inventory management among retailers contributing to better performance [44][72] - Management noted that while pricing has normalized, cost inflation is easing, allowing for continued investment in A&P [28][46] Other Important Information - The company completed a share buyback of £315 million, reducing the number of shares in issue by approximately 1.1% [64] - The impact of foreign exchange was noted, with a 460 basis point adverse effect on organic revenue growth due to currency fluctuations [18][34] Q&A Session All Questions and Answers Question: What is the outlook for volume/mix in Q2? - Management indicated that the majority of the volume decline in North America was due to specific factors that will not repeat, suggesting confidence in volume growth for the year [39][71] Question: What are the expected savings from the Maidenhead facility closure? - The savings from the closure are expected to be significant, with a good payback on the one-time costs associated with the transition [40][76] Question: How is the pricing strategy evolving across regions? - Most pricing adjustments have been completed in Europe, while pricing in the U.S. is taken at different times throughout the year, depending on retailer practices [69][77] Question: What is the expected impact of the erectile dysfunction cream launch in the U.S.? - The launch is on track, with production ramping up as planned, and is expected to contribute positively to revenue [105][107] Question: How is the company managing inventory levels? - Current inventory levels are about one week lower than historical trends, indicating effective inventory management [11][52]

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...