Haleon Shares Plunge 7.7% as FY25 Organic Growth Misses 3.5% Goal
Haleon plc reported FY2025 organic revenue growth of 3%, missing its 3.5% target and driving revenues down 1.8% to £11.03 billion. Net income rose 15.6% to £1.667 billion, while the company outlined a £500 million share buyback and targets 3–5% organic growth and high single-digit adjusted operating profit expansion.
1. Revenue Growth Shortfall
Haleon recorded organic revenue growth of 3% for FY2025, falling short of its 3.5% guidance. Total revenues declined 1.8% year-on-year to £11.03 billion, driven by a milder-than-expected cold and flu season that trimmed growth by approximately 40 basis points.
2. Rising Profit
Net income attributable to shareholders increased 15.6% year-on-year to £1.667 billion. Improved profitability reflected cost control measures and operational efficiencies, offsetting the revenue headwinds from consumer softness in key markets.
3. Outlook and Buyback
The company set a target for 3–5% organic revenue growth in 2026 and aims for high single-digit growth in adjusted operating profit. Management also authorized a £500 million share buyback program to support shareholder value.
4. Stock Reaction
Following the revenue miss, Haleon shares dropped as much as 7.7% during the trading session, reflecting investor concerns over near-term growth headwinds and consumer demand weakness. This marks one of the sharpest daily moves for the stock this year.