Haleon, the consumer healthcare product business that demerged from GSK earlier this year, saw its third-quarter revenue climb 16.1% to £2.89bn, helped by price rises to offset higher costs.
Organic sales grew 8.1%, with price hikes accounting for 5.5% of the rise and volume growth the other 2.6%.
As a result, the owner of brands such as Sensodyne and Panadol has lifted its full-year outlook and now expects organic sales growth of 8.0-8.5%, versus a previous forecast of 6-8%.
Operating profit rose 12.2% to £569m, although margin was down 70bps to 19.7% due to “standalone costs” and currency effects. The company noted that the positive benefit from pricing and volume/mix leverage from revenue, combined with efficiencies, fully offset commodity costs and inflationary pressures.
Over the three months to 30 September, Haleon’s Respiratory Health product category was the star performer with organic sales up 30.2% to £457m, driven by sustained incidences of Covid and cold and Flu. Oral Health sales were up 6.7% to £787m, while sales of Vitamins, Minerals and Supplements slipped 1.4% to £437m against tough comparatives with last year during the pandemic. The Pain Relief category grew 3.6% to £648m and Digestive Health and Other was up 8.4% to £563m.
Chief Executive Brian McNamara commented: “Overall Haleon is demonstrating its strength in a challenging market environment. Whilst macroeconomic conditions remain volatile and uncertain, we remain confident that the quality of our portfolio, disciplined execution of our strategy, and continued investment will enable Haleon to deliver on medium-term guidance.”
