UK's Haleon slides as weak flu season, China hit prompt outlook cut
HLN•Haleon cut its full-year organic revenue growth outlook to around 2.5%, from 3% to 5%, after weak demand for cold medicines and a regulatory setback in China. Third-quarter organic revenue grew 2.6%, below analysts' 3.2% estimate, and shares fell nearly 14%.
1. Outlook lowered
Haleon cut its full-year organic revenue growth outlook to around 2.5%, from its previous forecast of 3% to 5%. Analysts had expected 3.2%, according to a company-compiled poll.
2. Sales pressures
Organic revenue rose 2.6% in the three months ended September 30, missing estimates of 3.2%. Weaker consumption of cough, cold and flu treatments hit orders in North America, Haleon's largest market. Sales in China were weighed down by a change in raw material classifications affecting imports of over-the-counter Centrum multivitamins.
3. Brazil costs and shares
Haleon flagged a £15 million to £20 million ($20 million to $27 million) hit to fourth-quarter net revenue from accelerating its strategy in Brazil in response to the country's new tax framework. Its shares fell nearly 14% and were the biggest losers on the STOXX 600 and FTSE 100 in early trading.
