Haleon plc(HLN)2024-11-02 14:09Financial 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]