Slide 1: 2024 Third quarter trading statement
2024 Third quarter trading statement October 2024
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are, or may be These forward-looking statements and views may be based on a number deemed to be, “forward-looking statements” (including for purposes of of assumptions and, by their nature, involve known and unknown risks, the safe harbor
Slide 3: Tobias Hestler, CFO
Tobias Hestler CFO J
Slide 4: Third quarter 2024 results
Third quarter 2024 results 6.1% 3.3%/2.8% 5.4% Organic revenue growth1 Price / Volume Mix Power Brand growth 9m results 4.4% 4.0%/0.4% Organic revenue growth1 Price / Volume Mix 1 Q3 organic growth balanced between price and volume/mix Delivering on capital allocation priorities underpinned by share
Slide 5: Strong Q3 organic revenue growth
Strong Q3 organic revenue growth All three regions delivered volume/mix growth £m +6.1% Organic revenue growth1 +2.8% (1.8)% (4.9)% +3.3% Net M&A2 Price Volume/mix Translation 2,798 foreign 2,780 2.4% North America 2.4% exchange3 5.3% EMEA & LATAM 0.8% Driven mainly by Sterling strength against US 1
Slide 6: Strong volume/mix with pricing normalising
Strong volume/mix with pricing normalising 2022 2023 2024 Organic FY 9.0% FY 8.0% 9m 4.4% revenue growth1 11.6% 6.6% 10.4% 5.8% 3.0% 4.1% 6.1% Price 3.7% 7.5% Volume/mix 7.9% 4.7% 6.5% 3.3% 5.0% 3.4% 2.9% 2.8% 1.9% 0.7% (0.7)% (2.0)% H1 2022 H2 2022 H1 2023 H2 2023 Q1 2024 Q2 2024 Q3 2024 1. Definit
Slide 7: Portfolio delivering robust growth
Portfolio delivering robust growth Strong performance in Q3 with growth across all categories Organic Organic 9m 2024 revenue Q3 2024 revenue revenue growth1 revenue growth1 • High-single digit growth in Sensodyne • Double digit growth in parodontax £m % £m % • Double digit growth of Caltrate Oral H
Slide 8: North America
North America Continued share gains with overall market improving Oral Health Q1 Q2 Q3 Mid-single digit growth with share gains in Sensodyne 2024 2024 2024 VMS Revenue £996m £960m £997m Low-single digit growth with continued share gains. Centrum flat against tough comparative. ORG1 (3.3)% 1.0% 4.8%
Slide 9: EMEA & LatAm
EMEA & LatAm Strong performance supported by pricing Oral Health Mid-single digit growth with strength in Sensodyne and parodontax VMS Revenue £1,241m £1,176m £1,136m Mid-single digit growth. High-single digit growth in Centrum. ORG1 8.6% 7.2% 6.1% Pain Relief Flat with growth in Local Brands includ
Slide 10: Asia Pacific
Asia Pacific Strong growth as adverse Fenbid comparative falls away Oral Health Double digit growth driven by strength in Sensodyne with strong performance in India and South East Asia & Taiwan Revenue £682m £639m £647m VMS ORG1 3.3% 3.7% 8.2% Mid-single digit growth with strength in Caltrate partly
Slide 11: Building on strong performance in China
Building on strong performance in China Consistent share gains in China Driving strong performance Further investment in China Haleon China value market share 1 Revenue (£m); Organic growth2 (%) 13% • Agreement to acquire 33% of TSKF JV 7% for RMB 4,465m (c. £0.5bn)3 10.6% 966 13% 10.4% 7% • Takes H
Slide 12: Strong Q3 2024 organic profit and margin increase
Strong Q3 2024 organic profit and margin increase Adjusted operating profit1 and margin Q3 2024 +7.4% (4.6)% Growth algorithm delivering with £m (30) (10.0)% continued operating leverage enabling 49 Net investment Organic M&A2 (69) 689 (69) Impact of net M&A reflects Lamisil and ChapStick disposals
Slide 13: Disciplined capital allocation to deliver growth and attractive returns
Disciplined capital allocation to deliver growth and attractive returns Investing for growth M&A Shareholder returns • Brand investment • M&A • Grow ordinary dividends at least in line with adjusted earnings • R&D • Commercially compelling • Potential participation in Pfizer • Sustainability • Consi
Slide 14: Outlook
Outlook for full year 2024 YTD progress Organic revenue growth of 4-6% +4.4% 1 Organic operating profit growth up high single digit +9.7% 1 Net interest expense c. £320m Adjusted effective tax rate 24-25% 1. Definitions can be found in the Appendix 14
Slide 15: Building our track record of performance
Building our track record of performance Annualised total shareholder return2 Delivery of growth algorithm • Consistent above-market growth • Organic revenue growth of 7.7%1 20% • Resilient volume growth particularly over recent 19% consecutive quarters • Strong gross margin enabling brand investmen
Slide 16: Strong third quarter performance with positive volume/mix across all regions
Strong third quarter performance with positive volume/mix across all regions Increase in organic operating profit1 with continued investment in our brands; on track for high-single digit organic profit growth for FY 2024 Delivery of capital allocation priorities including agreement to increase stake
Slide 17: Q&A
2024 Third quarter trading statement Q&A October 2024
Slide 18: Appendix
Appendix
Slide 19: Glossary
Glossary A number of adjusted measures are used to report the performance of our business which are • Restructuring costs: Include personnel costs associated with restructuring programmes, non-IFRS measures. Adjusted results, organic revenue growth, organic profit growth, and other impairments of ta
Slide 20: Historic quarterly growth across the categories
Historic quarterly growth across the categories Organic revenue growth1 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Oral Health 6.6% 15.4% 9.4% 11.5% 10.6% 10.6% 9.1% 8.2% VMS (3.7)% 2.7% 1.4% 3.1% 0.9% 9.9% 8.5% 3.7% Pain Relief 11.0% 14.9% 6.2% (1.8)% 7.4% (4.8)% (4.0)% 3.1% Respiratory Health 33.0% 9.2% 4.
Slide 21: Translational currency impact
Translational currency impact FY 2023 currency as % Average Average Spot Currency of total revenue 9m 2023 9m 2024 30.09.24 2024 estimated USD 33% 1.24 1.28 1.34 unfavourable translational EUR 16% 1.15 1.18 1.20 foreign exchange impact CNY 8% 8.75 9.19 9.40 • c.(4)% revenue CAD <5% 1.67 1.74 1.81 •
Slide 22: Respiratory Health
Respiratory Health Cold and flu back to a normalised base Weekly US market cold and flu (million units) Cold and flu volume sales back 25 C&F season to pre-COVID-19 levels 2021-22 In US, Haleon has reformulated 20 products which do not contain 2022-23 PE with shipments commencing 2023-24 in Q3 2024
Slide 23: Medium term guidance
Medium term guidance Annual organic revenue growth of 4-6%1 Organic operating profit growth ahead of organic revenue growth1 Net debt/EBITDA2 of around 2.5x Dividend to grow at least in line with adjusted earnings 1. See appendix for definition 2. Adjusted EBITDA (see appendix for definition) 23
Slide 24: IFRS and Adjusted results
IFRS and Adjusted results Unaudited Q3 2024 Net amortisation Separation IFRS and impairment of Restructuring Transaction and admission Disposals Adjusted £m results intangible assets1 costs2 related costs costs and others3 results Revenue 2,780 2,780 Operating profit 705 7 47 - 3 (123) 639 Operating
Slide 25: Reconciliation of Q3 organic growth
Reconciliation of Q3 organic growth Product Categories Digestive Oral Pain Respiratory Health and 2024 vs 2023 (%) Health VMS Relief Health Other Total Revenue Growth 2.5 (0.7) (1.3) 3.9 (8.4) (0.6) Organic Adjustments - - - - 9.0 1.8 Effect of Exchange Rates 5.7 4.4 4.4 5.2 5.3 4.9 Organic Revenue
Slide 26: Reconciliation of 9m organic growth
Reconciliation of 9m organic growth Product Categories Digestive Oral Pain Respiratory Health and 2024 vs 2023 (%) Health VMS Relief Health Other Total Revenue Growth 4.8 3.1 (5.4) (2.7) (4.3) (0.7) Organic Adjustments - - - - 6.1 1.2 Effect of Exchange Rates 4.5 4.2 3.3 4.3 3.5 3.9 Organic Revenue
Slide 27: Reconciliation of Q3/9m organic profit growth
Reconciliation of Q3/9m organic profit growth Three months ended 30 September (%) 2024 vs 2023 2023 vs 2022 Operating profit growth 20.7 2.6 Adjusted operating profit growth (7.2) (5.0) Effect of exchange rates 10.0 13.9 Adjusted operating profit growth (CER) 2.8 8.9 Organic adjustments 4.6 (0.1) Or
Slide 28: 2024 Third quarter trading statement
2024 Third quarter trading statement Rakesh Patel Emma White Director Director Rakesh.x.Patel@Haleon.com Emma.x.White@Haleon.com +44 7552 484646 +44 7823 523562