Core Insights - Haleon is investing £65 million in a new oral health manufacturing plant in Shanghai to enhance its presence in China's gum health market, which is valued at approximately £860 million [1] - The company aims to expand its gum health brand parodontax to 30 cities in China by the end of 2027, targeting a rising middle class with increasing disposable income [1] - Haleon's investment reflects its long-term commitment to improving the health and wellbeing of Chinese consumers through locally tailored products and enhanced manufacturing capabilities [1] Investment and Expansion - The new manufacturing facility will support the expansion of Haleon's oral care portfolio, including global brands like Sensodyne and parodontax, into tier 2 and tier 3 cities in China [1] - Haleon plans to reach over 250 million people through its distribution strategy, which includes e-commerce platforms and retail pharmacies [1] - The investment is part of a broader strategy to respond quickly to evolving consumer preferences and accelerate innovation in the oral care category [1] Product Development - parodontax is the first clinically proven toothpaste in China targeting the root cause of bleeding gums, with a unique sensory profile adapted for local consumers [1] - Haleon's global R&D team collaborated with local scientists to modify the product's flavor and packaging to better appeal to Chinese consumers [1] - The company is focused on delivering high-quality, science-backed products that align with the growing demand for preventative oral care solutions [1] Strategic Priorities - China is identified as a strategic priority for Haleon, with the company aiming to combine global research expertise with local insights to enhance product offerings [1] - The new facility in Shanghai's Lingang New Area will enable Haleon to build a more agile and efficient supply chain, supporting its ambition to reach one billion more consumers by 2030 [1] - Haleon completed the acquisition of its TSKF joint venture in June 2025, further solidifying its position in China's consumer healthcare market [1]

Core Insights - Haleon made significant progress in 2025 against its three strategic priorities: competitive growth, productivity gains, and an agile performance-focused culture [1] - The company achieved 3% organic sales growth in 2025, which is below the medium-term guidance of 4% to 6%, primarily due to lower category growth and decreased consumer confidence in key markets [1] Growth Performance - Despite the challenging environment, 60% of Haleon's brand portfolio gained or maintained market share, indicating strong performance relative to global categories [2] - In China, the launch of parodontax is closing the incident versus treatment gap, with the product becoming a top-selling innovation in major cities and available in over 10,000 stores [2] Product Innovation - The rollout of parodontax will accelerate to 20 cities in 2025 to enhance market penetration [3] - Sensodyne's expanded clinical range has seen strong uptake among younger consumers, with growth exceeding 1.5 times the overall category in 30 global markets [3] - The company is also focusing on innovation-led premiumization, exemplified by the launch of Nasal Mist in North America [3]

Financial Data and Key Metrics Changes - In 2025, the company achieved 3% organic sales growth, which is below the medium-term guidance of 4%-6% due to lower category growth and reduced consumer confidence in key markets [1][5] - Full year organic revenue growth was 3%, with a split of 2.3% from price and 0.7% from volume mix [11] - Gross margin improved by 220 basis points, resulting in 10.5% organic profit growth [6][10] - Free cash flow reached GBP 1.9 billion, with a reduction in working capital by 11 days [10][22] Business Line Data and Key Metrics Changes - Oral health delivered high single-digit growth, outperforming the market with a 7.9% increase, driven by brands like Sensodyne and parodontax [13][20] - VMS (Vitamins, Minerals, and Supplements) grew 1.9%, with strong performance outside the U.S. but impacted by a softer multivitamin category in North America [14][17] - OTC (Over-the-Counter) pain relief grew 2.3%, with notable growth from Panadol and Advil [14][16] - Respiratory health declined by 1.9%, affected by a challenging consumer environment and a weaker cold and flu season [16] Market Data and Key Metrics Changes - North America experienced a 0.4% decline in organic revenue, with a split of 1% price increase and a 1.4% decline in volume mix [17] - EMEA and Latin America saw organic revenue increase by 4.7%, driven by price and volume mix [19] - Asia Pacific reported a 5.2% organic revenue growth, with significant contributions from China and India [20] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering competitive growth, unlocking productivity gains, and embedding an agile culture [1][4] - A new operating model is being implemented to enhance growth and agility, including the creation of new leadership roles and operating units [28][29] - The company plans to invest in A&P (Advertising and Promotion) and R&D to drive innovation and market execution [8][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning North America to growth, despite a challenging operating environment [7][32] - The outlook for 2026 anticipates organic revenue growth of 3%-5%, with continued strength in emerging markets [25][26] - Management acknowledged the need for improved organic revenue performance and is focused on unlocking productivity to drive growth [10][26] Other Important Information - The company allocated GBP 500 million for share buybacks in 2026 and proposed a final dividend of 4.9 pence, reflecting a 7.6% increase in total dividends for the year [6][25] - The productivity agenda aims for a reduction of SKUs and packaging by around 30% over three years, with expected gross annualized savings of GBP 175 million to GBP 200 million [4][24] Q&A Session Summary Question: What are the expectations for North America returning to growth? - Management is implementing a broader action plan and has strengthened the North America team to drive growth through improved marketing effectiveness and innovation [32] Question: How is the company addressing the challenges in the U.S. market? - The company is focusing on scaling innovations faster and leveraging its portfolio to improve competitive positioning in key categories [32]

Financial Data and Key Metrics Changes - In 2025, the company achieved 3% organic sales growth, which is below the medium-term guidance of 4%-6% due to lower category growth and reduced consumer confidence in key markets [1][5] - Full year organic revenue growth was 3%, with a split of 2.3% from price and 0.7% from volume mix [11] - Gross margin improved by 220 basis points, resulting in 10.5% organic profit growth [6][10] - Free cash flow reached GBP 1.9 billion, with a reduction in working capital by 11 days [10][22] Business Line Data and Key Metrics Changes - Oral health grew by 7.9%, significantly outperforming the market, with strong growth in brands like Sensodyne and parodontax [13][20] - VMS (Vitamins, Minerals, and Supplements) grew by 1.9%, with strong performance outside the U.S. but impacted by a softer multivitamin category in North America [14] - OTC (Over-the-Counter) pain relief grew by 2.3%, with notable growth in Panadol and the launch of Voltaren patches [14][15] - Respiratory health declined by 1.9%, affected by a challenging consumer environment and a weaker cold and flu season [16] Market Data and Key Metrics Changes - North America experienced a 0.4% decline in organic revenue, with a split of 1% price increase and a 1.4% decline in volume mix [17] - EMEA and Latin America saw organic revenue increase by 4.7%, driven by price increases and resilient performance in oral health [19] - Asia Pacific reported a 5.2% organic revenue growth, with significant contributions from China and India [20] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering competitive growth, unlocking productivity gains, and embedding an agile culture [1][4] - Plans to evolve the operating model to drive growth and agility were announced, including the creation of new leadership roles and operating units [28][29] - The company aims to return North America to growth through targeted actions and investments in marketing and innovation [8][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming the market despite a challenging operating environment, with expectations for 2026 organic revenue growth in the range of 3%-5% [7][26] - The outlook for North America is cautiously optimistic, with plans to enhance market execution and innovation [7][32] - Management acknowledged the need for improved organic revenue performance and emphasized the focus on productivity to drive future growth [10][26] Other Important Information - The company allocated GBP 500 million for share buybacks in 2026 and proposed a final dividend of 4.9 pence, marking a 7.6% increase in total dividends for the year [6][25] - The new operating model is expected to deliver GBP 175 million-GBP 200 million in gross annualized savings, enhancing flexibility and agility [24] Q&A Session Summary Question: What are the expectations for organic revenue growth in 2026? - The company expects organic revenue growth to be in the range of 3%-5%, with a focus on returning North America to growth and continued strength in emerging markets [7][26] Question: How is the company addressing the challenges in North America? - The company is implementing a broader action plan, strengthening the North America team, and investing in capabilities to drive distribution and marketing effectiveness [32] Question: What are the key drivers of the productivity agenda? - Key drivers include reducing SKUs, optimizing supply chain efficiency, and leveraging automation and AI to enhance operational effectiveness [4][12]

Financial Data and Key Metrics Changes - In 2025, the company achieved 3% organic sales growth, which is below the medium-term guidance of 4%-6% due to lower category growth and reduced consumer confidence [1][5] - Full year organic revenue growth was 3%, with a split of 2.3% from price and 0.7% from volume mix [5][10] - Gross margin improved by 220 basis points, resulting in 10.5% organic profit growth [6][9] - Free cash flow reached GBP 1.9 billion, with a reduction in working capital by 11 days [9][20] Business Line Data and Key Metrics Changes - Oral health grew by 7.9%, significantly outperforming the market, driven by strong performance from Sensodyne and parodontax [12][14] - VMS (Vitamins, Minerals, and Supplements) grew by 1.9%, with strong performance outside the U.S. but impacted by softer multivitamin category in North America [13][14] - OTC (Over-the-Counter) pain relief grew by 2.3%, with notable growth from Panadol and Advil [13][14] - Respiratory health declined by 1.9%, affected by a weaker cold and flu season [14] Market Data and Key Metrics Changes - North America experienced a 0.4% decline in organic revenue, with a split of 1% price increase and a 1.4% decline in volume mix [15][16] - EMEA and Latin America saw organic revenue increase by 4.7%, driven by price increases and resilient performance in oral health [17] - Asia Pacific reported 5.2% organic revenue growth, with significant contributions from China and India [18] Company Strategy and Development Direction - The company is focused on three strategic priorities: competitive growth, unlocking productivity gains, and embedding an agile culture [1][4] - A new operating model is being implemented to enhance growth and agility, including the creation of new leadership roles and operating units [26][27] - The company plans to invest in A&P and R&D to drive innovation and market execution [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning North America to growth, despite a challenging operating environment [6][24] - The outlook for 2026 anticipates organic revenue growth of 3%-5%, with continued strength in emerging markets [23][24] - Management acknowledged the need for improved organic revenue performance and emphasized unlocking productivity for sustained growth [9][24] Other Important Information - The company allocated GBP 500 million for share buybacks in 2026 and proposed a final dividend of 4.9 pence, marking a 7.6% increase in total dividends for the year [23][24] - Adjusted diluted EPS grew by 5%, supported by lower net interest charges and a favorable geographic mix of profit [19][24] Q&A Session Summary Question: What are the expectations for organic revenue growth in 2026? - The company expects organic revenue growth to be in the range of 3%-5%, with a focus on returning North America to growth and leveraging opportunities in emerging markets [23][24] Question: How is the company addressing the challenges in North America? - The company is implementing a new operating model and has appointed new leaders to strengthen its North America team, focusing on improving net revenue management and marketing effectiveness [27][30]

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