Haleon plc(US:HLN)2025-10-30 10:00Financial Data and Key Metrics Changes - The company achieved 3.4% organic revenue growth in Q3, with a balance of 1.8% from price and 1.6% from volume mix [3][6] - Reported revenue grew by 0.7% in Q3, affected by a 2.3% drag from divestments and a 0.4% impact from foreign exchange [6][7] - The company is on track to deliver its full-year guidance, expecting organic revenue growth of around 3.5% for 2025 [15][16] Business Line Data and Key Metrics Changes - Oral health grew by 6.9% in Q3, driven by innovation and geographic expansion, particularly in markets like the US, India, and China [7][10] - The BMS category grew by 4.9% in Q3, with strong performance from Centrum [8] - Pain relief grew by 3.7%, with Panadol showing high single-digit growth, while respiratory health declined by 1.8% [8][9] - Digestive health grew by 2.1%, supported by innovations in TUMS and Benefiber [9] Market Data and Key Metrics Changes - North America delivered organic revenue growth of 0.4%, driven by oral health and digestive health, despite challenges in the respiratory category [10][11] - EMEA and LATAM saw organic revenue increase of 5.3%, with strong performance in oral health and VMS [11][12] - Asia-Pacific experienced organic revenue growth of 5.1%, with double-digit growth in India and strong performance in Southeast Asia [12][14] Company Strategy and Development Direction - The company is focused on driving category growth through innovation-led premiumization and expanding reach to lower-income consumers [4][5] - Continued investment in supply chain productivity and cost discipline is expected to enhance flexibility and agility in the P&L [5][6] - The company aims to return to growth in North America next year, supported by a strong innovation pipeline and strategic pricing initiatives [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth in Q4, driven by salesforce investment and an improving macro environment [14][15] - The company is closely monitoring the macroeconomic environment in Latin America due to consumer pressures [16] - Management highlighted the resilience of the oral health category and the importance of being present across all channels to cater to changing consumer behaviors [41][57] Other Important Information - The company has completed £500 million in share buybacks for 2025 [6] - Significant progress has been made in reducing SKUs by 19%, which is expected to improve gross margin and working capital [5][78] Q&A Session Summary Question: North America performance and future expectations - Management noted that the performance in North America was better than expected, driven by oral health and digestive health, with no one-off benefits impacting Q3 [19][20] - For Q4, a slight decline in organic sales growth is anticipated due to tough comparatives from the prior year [21][22] Question: Innovation pipeline and cold/flu season outlook - The company has a strong innovation pipeline across categories, with no immediate RX to OTC switches expected [27][29] - Guidance for the cold and flu season is based on a normal season assumption, with variability expected [30][31] Question: Consumer behavior and channel dynamics - Management observed a bifurcated consumer environment, with some products performing well while others struggle, and emphasized the importance of being present across all shopping channels [41][42] Question: Pricing evolution in EMEA and LATAM - Management indicated that competitive pressure and promotional activity have increased due to softer consumption, impacting pricing in EMEA and LATAM [46][47] Question: Contribution of innovations and pain franchise performance - Innovations have significantly contributed to growth, with ongoing launches expected to drive future performance [53][54]