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 [8][9] - Gross margin improved by 220 basis points, contributing to a high single-digit operating growth at constant currency [10][44] - The company anticipates organic sales growth guidance of 3%-5% for 2026, indicating a potential sequential acceleration [6][11] Business Line Data and Key Metrics Changes - The U.S. market experienced a decline of approximately 0.5%, while APAC, EMEA, and LATAM grew in the mid-single digits [8][9] - Oral health business showed strong performance, helping to offset declines in the cold and flu category [9][20] - The company plans to focus on driving category growth through investments in advertising and promotion (A&P) and innovation [10][12] Market Data and Key Metrics Changes - Emerging markets, particularly India and China, are expected to contribute significantly to growth, with India showing double-digit growth and strong performance in oral health [29][30] - The company noted a slowdown in LATAM, particularly in Q4, due to challenging macroeconomic conditions [30][31] - E-commerce is growing aggressively in China, with significant contributions from platforms like Douyin [29][30] Company Strategy and Development Direction - The company has restructured its leadership to enhance agility and drive growth, including the creation of a Chief Growth Officer role and six operating units [15][18] - Focus on innovation and commercial execution is emphasized to improve competitiveness in the U.S. market [15][19] - The company aims to leverage its strengths in oral health and expand its reach in emerging markets [12][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain market conditions but expressed confidence in returning to the medium-term growth target of 4%-6% [11][68] - The company is focused on addressing consumer needs and driving category growth despite current challenges [52][53] - Management highlighted the importance of the cold and flu category for overall consumer health and its role in securing shelf space [56][57] Other Important Information - The company has increased A&P investment by over 7% compared to the previous year, with a significant portion allocated to oral health and emerging markets [35][75] - The productivity program has been successful, allowing for flexibility in investments for growth [44][46] Q&A Session Summary Question: What are the main drivers behind the organic sales growth guidance of 3%-5% for 2026? - Management indicated that the guidance reflects expected market improvements and a focus on driving category growth through investments and innovation [6][11] Question: Can you discuss the new reorganization and its impact on growth in the U.S.? - The reorganization aims to unlock growth and agility, with a focus on commercial execution and category strategies [15][18] Question: How is the performance in emerging markets, and what are the growth drivers? - Emerging markets are performing well, particularly in India and China, with a focus on volume growth and expanding reach [29][30] Question: How does the company plan to balance top-line performance with margin improvement? - Management emphasized the importance of investing in the right areas to drive sustainable growth while improving margins [35][36] Question: What is the outlook for the cold and flu business and its importance? - The cold and flu category is crucial for consumer health and shelf space, with management confident in its long-term growth potential [56][57]

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 [8][9] - Gross margin improved by 220 basis points, contributing to high single-digit operating growth at constant currency [10][44] - The company anticipates organic sales growth guidance of 3%-5% for 2026, indicating a potential sequential acceleration [6][11] 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 the mid-single digits [8] - Oral health business showed strong performance, helping to offset declines in the cold and flu category [9][20] - The company plans to focus on driving category growth through investments in advertising and promotion (A&P) and innovation [10][12] Market Data and Key Metrics Changes - Emerging markets, particularly India and China, are expected to contribute significantly to growth, with India showing double-digit growth and strong performance in oral health [29][31] - The company noted a slowdown in LATAM, particularly in Q4, due to challenging macroeconomic conditions [30] - E-commerce is growing rapidly in China, with online sales accounting for around 40% of the business [29] Company Strategy and Development Direction - The company has restructured its leadership to enhance agility and drive growth, creating roles such as Chief Growth Officer and Chief Transformation Officer [15][18] - A focus on unlocking growth through streamlined operations and improved commercial execution is emphasized [15][17] - The company aims to invest in innovation and capabilities while maintaining a leaner organizational structure [18][44] 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 [9][12] - The company acknowledges the uncertain market environment but remains optimistic about long-term growth potential in attractive categories [12][68] - 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 focusing on improving its supply chain efficiency, which has contributed to gross margin improvements [44][46] - A significant portion of A&P investment is directed towards oral health and emerging markets, reflecting strategic priorities [75] Q&A Session Summary Question: What are the main drivers behind the organic sales growth guidance of 3%-5% for 2026? - Management indicated that the guidance reflects expectations of market improvement and a focus on driving category growth through investments and innovation [6][11] Question: Can you discuss the new reorganization and its impact on growth in the U.S.? - The reorganization aims to enhance agility and streamline operations, with new leadership roles expected to drive volume growth and innovation [15][18] Question: How is the performance in emerging markets, and what areas are underperforming? - Emerging markets are performing well, particularly in India, while LATAM has faced challenges due to macroeconomic conditions [30][31] Question: How does the company plan to balance top-line performance with margin improvement? - Management emphasized the importance of investing in growth while achieving margin improvements through supply chain efficiencies [35][44] Question: What is the outlook for the cold and flu business and its importance in securing shelf space? - The cold and flu category is considered crucial for consumer health, and management believes it will play an important role in future growth [56]

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]

Core Viewpoint - Haleon shares declined by 3.4% after reporting organic revenue growth of 3%, which fell short of the company's medium-term target of 4-6% [2][3] Group 1: Revenue Performance - Organic growth was driven down by a weak cold and flu season and cautious consumer behavior in North America, which accounts for 35% of revenues, resulting in a contraction of 0.4% [3] - The mild winter negatively impacted revenue, stripping an estimated 40 basis points from the full-year growth and 150 basis points from the fourth quarter, particularly affecting the Robitussin brand [3] Group 2: Profitability Metrics - Adjusted operating profit increased by 10.5% organically to £2.526 billion, with margins expanding by 160 basis points [4] - Free cash flow reached £1.913 billion, supported by a supply chain productivity program that has reduced SKU counts by 26% and aims for £800 million in gross savings over five years [4] Group 3: Future Guidance - For 2026, the company is guiding for organic revenue growth of 3-5% and plans to return £500 million to shareholders through buybacks [4] - The dividend has increased by 7.6% to 7.1p, indicating a commitment to shareholder returns [4] Group 4: Market Position - The CEO noted that 60% of the business gained or maintained market share, suggesting that the brands remain competitive despite the challenges faced [5]