Half year trading update for the six months ended 30 June 2022

Key highlights:

• Successful listing on LSE as a member of the FTSE 100, and NYSE following demerger from GSK
• H1 revenue increased +13.4% to £5,188m, organic revenue growth +11.6%; 3.7% price and 7.9% volume mix
• Q2 revenue increased +12.9%, organic revenue growth +7.5%; 4.0% price and 3.5% volume mix, after an adverse impact of 2% on volume due to reversal of Q1 system cutover benefit 
• Strong power brand performance in H1: +13.4% organic growth with Panadol, Theraflu, Otrivin, Advil and Centrum particularly strong
• Rebound and strength in Cold and Flu season added 4% to H1 organic growth
• Ecommerce 9% total sales, growth in the high teens
• FY22 organic revenue growth is now expected to be 6-8%
• FY22 adjusted operating margin slightly down at constant currency on LY (FY 2021: 22.8%). Strong growth, Pfizer synergies, pricing and ongoing supply efficiencies, will largely offset standalone costs, continued investment, inflationary cost pressure and the impact of Russia and Ukraine. Assuming current spot rates, currency will be slightly positive on adjusted operating margin.

Outlook

Following strong momentum in the first half, FY2022 organic revenue growth is now expected to be 6-8%.

Adjusted operating margin in FY2022 is expected to be slightly down at constant currency on last year (FY21: 22.8%). Strong growth, the Pfizer synergies, pricing and ongoing supply efficiencies, will largely offset Haleon standalone costs (£175-£200 million), continued investment, inflationary cost pressure and the impact of Russia and Ukraine. Assuming current spot rates are sustained for the rest of the year, currency will be slightly positive on adjusted operating margin.

All medium term guidance reiterated, with annual organic revenue growth of 4-6%, sustainable moderate adjusted operating margin expansion at constant currency, and Net debt/EBITDA below 3x by the end of 2024. 

Financial Reporting Disclosure and calendar 

Haleon quarterly revenue split for Q3 and Q4 in 2021 and HY21 results provided in appendix

About Haleon plc

Haleon (LSE: HLN, NYSE: HLN) is a global leader in consumer health, with brands trusted by millions of consumers globally. The group employs over 22,000 people across 170 markets, who are united by Haleon’s purpose - to deliver better everyday health with humanity. Haleon’s product portfolio spans five major categories - Oral Health, Vitamins, Minerals and Supplements (VMS), Pain Relief, Respiratory Health, Digestive Health and Other. Its long-standing brands - such as Advil, Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident, Parodontax and Centrum - are built on trusted science, innovation and deep human understanding.

For more information, please visit www.haleon.com

For the full report please view here.

1. _{Reconciliation of IFRS results to adjusted results can be found on pages 9 to 10.}