Management attributes 2025 progress to the 'Three-S' strategy (Simplify, Streamline, Strengthen), which successfully stabilized the store brand business and recovered infant formula service levels above 90%. Performance was driven by significant market share gains in U.S. OTC and European brands, despite a 'soft' market environment characterized by reduced consumer consumption and trade-down to smaller units. The company secured over $100 million in new distribution and competitive takeaways, which ma ...

Q4 & FY2025 Earnings Presentation February 26, 2026 Bradley Joseph VP Global Investor Relations 3 Agenda Brad Joseph • Introduction Patrick Lockwood-Taylor Eduardo Bezerra Forward-Looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and u ...

Financial Data and Key Metrics Changes - The company reported organic sales growth of 3% for 2025, which was below expectations due to a slowdown in the U.S. market and a weaker cold and flu season [6][10] - Gross margin improved by 220 basis points, contributing to high single-digit operating growth at constant currency [9][43] - The company anticipates organic sales growth guidance of 3%-5% for 2026, indicating a potential sequential acceleration [5][10] Business Line Data and Key Metrics Changes - The U.S. market experienced a decline of approximately 0.5%, while APAC and EMEA LatAm grew in mid-single digits [6][10] - Oral health business showed strong performance, helping to offset declines in the cold and flu category [7][18] - The productivity program continues to deliver efficiencies, allowing for investment in growth despite challenges in other categories [9][43] Market Data and Key Metrics Changes - Emerging markets, particularly India and China, are expected to drive growth, with India showing double-digit growth and strong performance in oral health [26][27] - The company noted a slowdown in LATAM and EMEA due to challenging macro conditions, particularly in the fourth quarter [28][29] - E-commerce in China is growing rapidly, with significant contributions from platforms like Douyin [27] Company Strategy and Development Direction - The company is focused on unlocking growth through a new organizational structure, including the creation of a Chief Growth Officer role and six operating units [14][16] - Investment in advertising and promotion (A&P) is prioritized, with half of the increase directed towards oral health and emerging markets [73] - The strategy emphasizes innovation and category growth, particularly in oral health and addressing low-income consumer needs [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in the U.S. market in 2026, despite current challenges [11][66] - The company acknowledges the uncertain market environment but remains optimistic about the potential for recovery and growth in emerging markets [11][66] - Management highlighted the importance of cold and flu products in the overall portfolio and their role in driving consumer health [56] Other Important Information - The company is implementing a productivity program aimed at reducing complexity in the supply chain, which has already shown positive results [43][45] - The company is addressing challenges in specific brands, such as Nexium in the digestive health category, while also focusing on opportunities related to GLP-1 medications [60][62] Q&A Session Questions and Answers Question: What will be the main drivers behind the organic sales growth guidance of 3%-5% for 2026? - Management indicated that the guidance reflects expected improvements in market conditions and competitive performance, with a focus on driving category growth and innovation [5][10] Question: Can you discuss the new reorganization and its impact on growth in the U.S.? - The reorganization aims to streamline operations and enhance agility, with new leadership roles expected to drive volume growth and innovation [14][16] Question: How is the company addressing the slowdown in emerging markets? - Management expressed excitement about emerging markets, particularly in Asia PAC, where growth is driven by volume mix and expanding reach among lower-income consumers [26][29] Question: What is the company's strategy for improving volume growth? - The company is focused on a balanced price-volume mix and has implemented key actions to drive volume growth, particularly in North America [36][37] Question: How important is the cold and flu business for securing shelf space? - Management emphasized the significance of the cold and flu category for consumer health and its role in category management, despite recent declines [56]

Haleon (NYSE:HLN) H2 2025 Earnings call February 25, 2026 02:00 AM ET Company ParticipantsBrian McNamara - CEO and Executive DirectorDawn Allen - CFO and Executive DirectorBrian McNamaraHello, and welcome to our full year results presentation. 2025 was an important year for Haleon, and we made good progress against our three strategic priorities. First, delivering competitive growth in a challenging environment. Second, unlocking productivity gains. Third, embedding an agile, performance-focused culture. In ...

Financial Data and Key Metrics Changes - Perrigo's organic net sales growth in Q2 was flat compared to the prior year, with OTC brand growth of 3.6% [9] - Year-to-date organic growth was also flat, but up nearly 1% excluding prior year benefits and lost distribution [9] - Gross margin declined due to divested businesses and isolated production variability in infant formula, with organic operating income growth at 28.3% year-to-date [11][30] - EPS in Q2 grew 7.5% or 12.5% organically, and year-to-date EPS increased by over 50% organically [12][35] Business Line Data and Key Metrics Changes - The infant formula business net sales grew 9%, driven by store brand formula, while the Good Start brand experienced a significant decline due to lost distribution [6][16] - Pain and sleep aids grew 8%, contributing to total growth, while upper respiratory products added 0.7 points primarily from new distribution [12][13] - OTC brands delivered organic net sales growth of 3.6% year-over-year, with Jungle Formula growing 14% and Compie achieving record share in several European markets [13][14] Market Data and Key Metrics Changes - Declining total category consumption in the U.S. and decelerating consumption in the EU limited top-line growth, but store brands gained share as consumers sought value [10] - Store brand OTC is gaining share, with Perrigo's allergy product sales up almost 19% at a key retailer despite overall category decline [20][64] - The company is seeing an acceleration in consumers trading down to private label products, with store brand OTC gaining volume and unit share [64] Company Strategy and Development Direction - The company is focused on its 3S plan: stabilize, streamline, and strengthen, with significant steps taken to enhance its self-care organization [5][8] - The sale of the derma cosmetics business for up to EUR 327 million is aimed at sharpening strategic focus on core high-growth brands [6][21] - The company is scaling its category-led market activation growth model to unlock portfolio potential and enhance brand building activities [7][23] Management's Comments on Operating Environment and Future Outlook - Management described the market as fluid and volatile, with heavy promotions from competitors impacting share growth expectations [44] - Despite challenges, the company remains confident in achieving its EPS target, needing only a 3% increase in the second half compared to the previous year [48][49] - The company reaffirmed its full-year EPS outlook, expecting strong double-digit growth despite anticipated lower net sales growth [38][90] Other Important Information - The company is on track to achieve its 2025 operating cash flow conversion target of approximately 100% to adjusted net income [36] - Net leverage to adjusted EBITDA is currently at 3.9x, with a target of approximately 3.5x by year-end [36][37] - The company plans to offset tariff impacts through strategic pricing actions and supply chain adjustments [40][63] Q&A Session Summary Question: Insights on the infant formula market and competitor responses - Management noted that the market is fluid with heavy promotions from brands, and while store brand volume continues to grow, share growth has been dampened by new entrants [44][45] Question: Building blocks for achieving guidance in the second half - Management confirmed that the EPS requirement for the second half aligns with guidance, with significant growth expected from new OTC store brand contracts and improved demand generation activities [51][53] Question: Strategic pricing actions and retailer conversations - Management indicated that discussions with retailers are positive, with expectations to offset tariff impacts through pricing actions across both branded and private label OTC [62][63] Question: Changes in expectations for Opill and marketing plans - Management expressed satisfaction with Opill's performance, noting double consumption and plans to continue targeted marketing to specific consumer cohorts [74][75] Question: Confidence in addressing increased product scrap in infant formula - Management reassured that the increased scrap was an isolated incident caught by quality systems, and confidence is high that it will not continue to impact margins [82][84] Question: Long-term guidance implications from updated expectations on infant formula - Management stated that while the ramp-up has been slower than expected, there is no change to long-term outlook, and efforts to rebuild market share continue [86][87]

Financial Data and Key Metrics Changes - Perrigo's organic net sales growth in Q2 2025 was flat compared to the prior year, with OTC brand growth of 3.6% [8][10] - Gross margin declined by 250 basis points, impacted by divested businesses and isolated production variability in infant formula [11][30] - EPS in the quarter grew by 7.5% or 12.5% organically, with year-to-date EPS growth exceeding 50% organically [12][34] Business Line Data and Key Metrics Changes - The infant formula business net sales grew by 9%, driven by store brand formula, while the Good Start brand experienced a significant decline due to lost distribution [6][16] - Pain and sleep aids grew by 8%, contributing positively to overall growth, while the digestive health category faced challenges due to lower consumption of proton pump inhibitors [12][14] - OTC brands delivered organic net sales growth of 3.6%, with Jungle Formula and Compie achieving significant market share gains [13][14] Market Data and Key Metrics Changes - Store brands are gaining share in volume and unit share as consumers seek value amidst economic uncertainty [10][12] - The U.S. market is experiencing declining total category consumption, while the EU is seeing decelerating consumption trends [10][11] - Perrigo's allergy product sales at a key retailer increased by almost 19% year-to-date, contrasting with a category decline of over 2% [19] Company Strategy and Development Direction - The company is focused on its 3S plan: Stabilize, Streamline, and Strengthen, with significant progress made in stabilizing the infant formula business and streamlining operations [5][26] - An agreement to sell the derma cosmetics business for up to EUR 327 million is expected to sharpen strategic focus on core high-growth brands [6][21] - The company aims to enhance its category-led market activation growth model to unlock portfolio potential and improve execution [22][23] Management's Comments on Operating Environment and Future Outlook - Management described the market as fluid and volatile, with heavy promotional activity from competitors impacting share growth expectations [44][45] - Despite challenges, the company remains confident in achieving its EPS target range of $2.9 to $3.1 per share, equating to strong double-digit growth [38][88] - Management acknowledged the slower-than-expected recovery in the infant formula business but emphasized ongoing demand generation efforts [46][84] Other Important Information - Year-to-date organic gross profit increased by 3.8%, primarily due to recovery in the infant formula business [31] - The company is on track to deliver a full-year gross margin of approximately 40% [30] - Operating cash flow for the year to date was $11 million, with cash on the balance sheet at $454 million [35][36] Q&A Session Summary Question: Insights on the infant formula market and competitor responses - Management noted that the market is fluid, with brands heavily promoting to gain share, and acknowledged that their shelf placement is not optimal at certain retailers [44][45] Question: Building blocks for achieving guidance in the second half - Management confirmed that the EPS requirement for the second half aligns with guidance, emphasizing confidence in OTC store brand growth and infant formula recovery [49][52] Question: Strategic pricing actions and retailer conversations - Management indicated that discussions with retailers regarding pricing are positive, with expectations to offset tariff impacts through pricing actions and supply chain adjustments [61][62] Question: Changes in expectations for Opill and marketing plans - Management expressed satisfaction with Opill's performance, noting double consumption growth and plans to continue investing in brand awareness [72][74] Question: Increased product scrap in infant formula and future confidence - Management clarified that the increased product scrap was an isolated issue caught by quality systems, and they are confident it will not continue to impact margins [80][82]

Financial Performance - Q1 2025 - Net sales were $1044 million, a decrease of 3.5% year-over-year (YoY), with organic net sales decreasing by 0.4%[30] - Adjusted gross profit increased by 8.1% YoY to $428 million, with adjusted gross margin at 41.0%, an increase of 440 basis points[30] - Adjusted operating income increased significantly by 57.6% YoY to $147 million, with adjusted operating margin at 14.0%, up by 550 basis points[30] - Adjusted EPS saw substantial growth of 106.9% YoY, reaching $0.60[30] Segment Performance - Q1 2025 - Consumer Self-Care Americas (CSCA) net sales decreased by 3.6% YoY, while organic net sales also decreased by 3.6%[63] - Consumer Self-Care International (CSCI) net sales decreased by 3.4% YoY, but organic growth was positive at 4.5%[63] - CSCA adjusted operating income increased by 90.0% YoY to $100 million[66] - CSCI adjusted operating income increased slightly by 0.2% YoY to $86 million[66] Outlook and Strategy - The company is widening its 2025 reported net sales growth target to 0%-3% and organic net sales growth to 1.5%-4.5%[72] - The company reaffirms all other 2025 financial targets, including an adjusted gross margin of approximately 40%, an adjusted operating margin of approximately 15%, and adjusted diluted EPS between $2.90 and $3.10[72] - The company expects approximately 100% operating cash flow conversion and net leverage of approximately 3.5x adjusted EBITDA at the end of 2025[70] - The company anticipates a roughly 1% gross increase in global COGS in 2025 due to tariffs, with a full-year impact of approximately 5.5%[23]