Haleon Plc · LSE:HLN
Haleon — H1 2025 Earnings Presentation
42 slides from Haleon's earnings presentation, July 2025
Slide 1: 2025 Half year results
2025 Half year results July 2025
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: Brian McNamara, CEO
Brian McNamara CEO 2025 Half year results
Slide 4: Transforming Haleon into a world-class consumer company
Transforming Haleon into a world-class consumer company making good progress against strategic priorities of growth, productivity and culture Good half-year growth in EMEA & LatAm and Asia-Pacific partly offset by a weak US consumer and retailer environment Strong progress against productivity agend
Slide 5: H1 2025 results
H1 2025 results £5.5bn 3.2% 2.4%/0.8% H1 revenue Organic revenue growth1 Price / Volume Mix Q2 results Adjusted gross profit1: 3.0% 2.5% /0.5% Organic Price / Volume Mix Up 5.7% organically driven by productivity revenue growth1 delivering 160bps margin expansion organically Adjusted operating profi
Slide 6: Unlocking our full potential
Unlocking our full potential 01 02 03 Growth Productivity Culture Annual 4-6% organic Significant gross A more agile and revenue growth 1 margin opportunity 2 performance-focused company 1. See appendix for definitions of non-IFRS measures 2. Refers to adjusted gross margin (see appendix for definit
Slide 7: Growth: Three opportunities
01 Growth: Three opportunities Closing the incidence Innovation-led Lower income vs treatment gap premiumisation consumers 7
Slide 8: Growth: Closing incidence vs treatment gap - Otrivin Nasal Mist
Growth: Closing incidence vs treatment gap - Otrivin Nasal Mist Opportunity Innovative solution Delivering strong performance Nasal Mist geographical market reach (% market) c.50% 10% 6% Markets with 2023 2024 2025 Nasal Mist 3 8 18 • 65% consumers in key markets • Launch of Otrivin Nasal Mist • Gro
Slide 9: Growth: Innovation-led premiumisation - Sensodyne Clinical Range
Growth: Innovation-led premiumisation - Sensodyne Clinical Range Opportunity Innovative solution Delivering strong performance • 45% of population suffer from • Clinical Platform: • Strong results driving share 1 sensitive teeth – Clinical White (whitening) gain • Only one in three sufferers use – C
Slide 10: Growth: Lower income consumers
Growth: Lower income consumers Opportunity Innovative solution Delivering strong performance FIND PIS • Provide a high quality range to • Launches across Sensodyne, • Increased distribution in India lower income consumers Centrum and Panadol to serve with Rs 20 Sensodyne lower income consumer needs
Slide 11: Productivity: supply chain transformation
02 Productivity: supply chain transformation H1 organic gross profit: +5.7% with margin up 160bps 1 Overall efficiency Complexity reduction and effectiveness Number of SKUs Formulations Progress Production volume consolidation to date2 c.16% c.5% Procurement savings Ambition by 2028 30% 25% - 30% Op
Slide 12: Productivity: Reducing complexity in Levice, Slovakia
02 Productivity: Reducing complexity in Levice, Slovakia Progress as we transition from Maidenhead Formulations1 Volumes1 (25)% +25% Driving material cost savings 1. Compared to Dec 2023 12
Slide 13: Guidance
Guidance Updated 2025 guidance Around 3.5% organic revenue growth High-single digit organic operating profit growth Medium term guidance from 2026 Annual organic revenue growth of 4-6%1 High-single digit adjusted operating profit growth1,2 1. Reconciliation/definition of IFRS to Adjusted results can
Slide 14: Dawn Allen, CFO
Dawn Allen CFO 2025 Half year results
Slide 15: H1 2025 – Financial Headlines
H1 2025 – Financial Headlines Investing Revenue Profit Cash for Growth £5.5bn £3.6bn £1.2bn £734m Revenue Adj. gross profit Adj. op profit Free cash flow • +3.2% organic growth • 65.0% gross margin • +9.9% organic growth • £184m like for like • Good growth in • +160bps organic increase vs H1 20242 •
Slide 16: H1 2025 organic revenue growth: +3.2%
H1 2025 organic revenue growth : +3.2% 1 £m ORG1 +3.2% Organic revenue growth driven by 2.4% (2.9)% 0.8% price and improving volume trends in 5,694 Price Net M&A2 EMEA & LatAm and APAC in Q2 Volume/Mix (4.1)% 5,480 Net M&A2 dilution reflects divestment Translational of ChapStick and Non-US Smokers’
Slide 17: H1 2025 organic profit growth: +9.9%
H1 2025 organic profit growth : +9.9% 1 £m 9.9% (7.9)% 1,293 Operating leverage driven by continued Net M&A2 (5.9)% Operating 1,243 productivity initiatives partly offset by leverage healthy increase in A&P and R&D spend Translational FX Net M&A2 - divestment of ChapStick and Non-US Smokers’ Health
Slide 18: High quality earnings
High quality earnings % YoY % YoY Adj. gross margin improvement £m H1 2025 H1 2024 (AER) (Organic) +160bps (organic), well ahead of Revenue 5,480 5,694 (3.8)% 3.2% 50-80bps target Adjusted gross profit 1 3,561 3,630 (1.9)% 5.7% Margin expansion driven by pricing, manufacturing efficiencies and lower
Slide 19: Global portfolio delivering growth
Global portfolio delivering growth Organic Organic Q2 2025 revenue H1 2025 revenue revenue growth1 revenue growth1 £m % £m % Oral Health 848 8.7% 1,728 7.6% VMS 417 0.9% 833 0.9% Pain Relief 625 2.5% 1,286 2.5% Respiratory Health 368 (2.0)% 893 (0.5)% Digestive Health 237 (2.8)% 491 (0.3)% Therapeut
Slide 20: North America
North America 34% of H1 2025 revenue • Q2 organic revenue growth1: (1.8)% H1 revenue with 1.2% price and (3.0)% volume/mix (0.4)% 0.2% (0.6)% • Q2 performance reflects: – Innovation-led growth in Oral Health Organic growth1 Price Volume / mix – High-single digit decline in allergy and double-digit d
Slide 21: EMEA & LATAM
EMEA & LATAM 42% of H1 2025 revenue • Q2 organic revenue growth1: +5.4% H1 revenue with 3.8% price and 1.6% volume/mix 5.2% 4.7% 0.5% • Q2 performance reflects: – Continued strength across Oral Health underpinned by Organic growth1 Price Volume / mix innovation – Mid-single digit growth in Centrum –
Slide 22: APAC
APAC 24% of H1 2025 revenue • Q2 organic growth1: +5.9% H1 revenue with 2.0% price and 3.9% volume/mix 5.0% 1.7% 3.3% • Q2 performance reflects: – Double digit growth in Oral Health Organic growth1 Price Volume / mix – Double digit growth in Centrum – Mid-single digit growth in Pain Relief driven by
Slide 23: Adjusted diluted EPS growth +2.2%
Adjusted diluted EPS growth +2.2% 1 £m H1 2025 H1 2024 % change Adjusted operating profit1 1,243 1,293 (3.9)% Net finance costs Net finance costs (129) (162) (20.4)% • Reduction driven by lower net debt and favourable foreign Adjusted tax1 (272) (277) (1.8)% exchange movement on US Dollar denominate
Slide 24: Significant reduction in adjusting items
Significant reduction in adjusting items £m H1 2025 H1 2024 % change Adjusted operating profit1 1,243 1,293 (3.9)% Restructuring costs Net amortisation and • Includes costs related to productivity programme (26) 4 impairment of intangible assets1 (announced in 2023) and Maidenhead site closure Restr
Slide 25: Strong free cash flow generation
Strong free cash flow generation Working capital £m H1 2025 H1 2024 % change • 17 day reduction in working capital cycle vs H1 2024 Adjusted operating profit1 1,243 1,293 (3.9)% and flat vs Dec 2024 P&L adjusting items 1 (40) (142) Tax (paid) Non-cash movements 2 217 233 • Reduction driven by additi
Slide 26: Reduced net debt
Reduced net debt £m 2.8x 2.8x Net debt / Shareholder Net debt / Adjusted EBITDA1 returns Adjusted EBITDA1 Cost of bond debt3: 3.1% Share repurchase2 74% fixed/26% floating4 10.7 £7.9bn 372 (388) $1,750m bond paid in March 2025 Dividend payment M&A £7.7bn £676m cash5 and no commercial (26) FX gain on
Slide 27: Disciplined capital allocation to deliver growth and attractive returns
Disciplined capital allocation to deliver growth and attractive returns Investing for growth Bolt-on M&A Shareholder returns • Continued investment in A&P • Completed acquisition of • £415m returned to remaining 12% stake in China shareholders through • R&D investment behind JV for £174m dividends i
Slide 28: Updated 2025 guidance
Updated 2025 guidance Around 3.5% organic revenue growth High-single digit organic operating profit growth Other modelling considerations Net Interest, Tax, and non- Net M&A and Translational controlling interest unchanged Foreign Exchange • Net interest cost expected to be • Net M&A to impact reven
Slide 29: Our leading value creation framework
Our leading value creation framework Operating Strong cash flow Disciplined capital leverage generation allocation 4-6% annual organic Working capital Invest for growth revenue growth 1 improvement +50-80bps adjusted Strong free Bolt-on acquisitions gross margin per annum2 cash flow High-single digi
Slide 30: Brian McNamara, CEO
Brian McNamara CEO 2025 Half year results
Slide 31: Transforming Haleon into a world-class consumer company
Transforming Haleon into a world-class consumer company making good progress against strategic priorities of growth, productivity and culture Good half-year growth in EMEA & LatAm and Asia-Pacific partly offset by a weak US consumer and retailer environment Strong progress against productivity agend
Slide 32: Appendix
Appendix
Slide 33: Glossary
Glossary We use certain alternative performance measures to make financial, operating, and planning • Restructuring costs: From time to time, the Group may undertake business decisions and to evaluate and report performance. Adjusted Results and other non-IFRS restructuring programmes that are struc
Slide 34: Historic quarterly growth across the categories
Historic quarterly growth across the categories Organic revenue growth1 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 HY Oral Health 10.6% 9.1% 8.2% 10.6% 9.6% 6.6% 8.7% 7.6% VMS 9.9% 8.5% 3.7% 8.2% 7.6% 0.9% 0.9% 0.9% Pain Relief (4.8)% (4.0)% 3.1% 7.4% 0.1% 2.6% 2.5% 2.5% Respiratory Health (2.7)% 1.3% 8.2% (2.6
Slide 35: Debt profile
Debt profile Net debt c.6.7 years Group net Group net Group net debt at debt at debt at £m 30 Jun 2025 31 Dec 2024 30 Jun 2024 Short-term borrowings 813 1,487 1,451 Duration1 Long-term borrowings 7,666 8,640 7,407 Derivative financial liabilities 66 160 193 Cash and cash equivalents (676) (2,250) (5
Slide 36: IFRS and Adjusted Income Statement
IFRS and Adjusted Income Statement Unaudited 6 months ended 30 June Gross Profit Operating Profit Income tax £m 2025 2024 2025 2024 2025 2024 IFRS Results 3,524 3,548 1,203 1,151 (262) (242) Net amortisation and impairment of intangible assets1 26 (4) 26 (4) (6) 2 Restructuring costs 11 86 26 132 (6
Slide 37: IFRS and Adjusted Income Statement
IFRS and Adjusted Income Statement Unaudited 6 months ended 30 June Profit Diluted earnings attributable per share to shareholders (pence) £m 2025 2024 2025 2024 IFRS Results 806 726 8.9 7.9 Net amortisation and impairment of intangible assets 20 (2) 0.2 - Restructuring costs 20 100 0.2 1.1 Transact
Slide 38: Reconciliation of HY organic growth
Reconciliation of HY organic growth Product categories Ended 30 June Digestive Therapeutic Oral Pain Respiratory Health and Skin Health 2025 vs 2024 (%) Health VMS Relief Health Other and Other Total Revenue growth 2.7 (2.8) (1.3) (14.5) (5.6) (13.2) (3.8) Organic adjustments - - - 11.0 0.5 14.4 2.9
Slide 39: Reconciliation of quarterly organic growth
Reconciliation of quarterly organic growth North America EMEA & LatAm Q1 Q2 HY Q1 Q2 HY 2025 vs 2024 (%) 2025 2025 2025 2025 vs 2024 (%) 2025 2025 2025 Revenue Growth (1.6) (9.3) (5.4) Revenue Growth (4.3) (4.7) (4.5) Organic Adjustments 2.3 1.8 2.0 Organic Adjustments 4.0 4.3 4.2 Effect of Exchange
Slide 40: Reconciliation of HY organic gross and operating profit growth
Reconciliation of HY organic gross and operating profit growth Six months ended 30 June 2025 vs 2024 2024 vs 2023 (%) (%) Gross profit growth (0.7) (0.1) Adjusting items (1.2) 1.6 Adjusted gross profit growth (1.9) 1.5 Effect of exchange rates 4.7 3.9 Adjusted gross profit growth (CER) 2.8 5.4 Organ
Slide 41: Free cash flow and Adjusted EBITDA
Free cash flow and Adjusted EBITDA Free cash flow Adjusted EBITDA2 Six months to 30 June Six months to 30 June £m 2025 2024 £m 2025 2024 Net cash inflow from operating activities 1,027 842 Adjusted operating profit 2 1,243 1,293 Capital expenditure 1 (129) (112) Add: Depreciation – Property Plant an
Slide 42: H1 2025 results
H1 2025 results Jo Russell Rakesh Patel Head of Investor Relations Director Joanne.c.Russell@Haleon.com Rakesh.x.Patel@Haleon.com +44 7787 392441 +44 7552 484646