Haleon posts healthy first quarter update after UK job cuts

Revenue at Haleon was up in the first quarter despite its announcement yesterday that it would cut over 400 jobs in the UK, as the consumer healthcare firm posted an update in line with expectations.

The firm, which makes Sensodyne, Centrum vitamins and Panadol painkillers, reported organic revenue growth of 3 per cent, but flagged a decline in reported revenue, which it largely attributed to a foreign exchange impact of 4.6 per cent.

Its so-called ‘Power Brands’, which constitute Sensodyne and Centrum, among others, were strong performers for the company, with organic revenue growth of 5.2 per cent.

Haleon , previously the consumer arm of pharma giant Glaxosmithkline (GSK) before it spun off in 2022, also pointed to a healthy growth in profit, up 12.8 per cent, which it said was underpinned by strong operating leverage and cost efficiencies.

Brian McNamara, the firm’s chief executive officer, commented: “First quarter trading was solid and in line with guidance shared when we reported full-year 2023 results.

“Organic revenue growth of 3 per cent was impacted by lapping tough comparatives in the prior year, particularly in Respiratory Health and Pain Relief.”

Yesterday the company announced it plans to shut its manufacturing site in Berkshire, in a move that would result in 435 job losses. The firm, which employs nearly 2,000 staff in the UK, said the base was “no longer a viable option” after a strategic review. It will transfer a proportion of the production to its Slovakian site.

The consumer healthcare firm confirmed it had purchased 102m shared for approximately £315m as part of the buybacks it expects to complete this year.

It reiterated its full-year guidance, with expected revenue growth of between four and six per cent.