Haleon Plc · LSE:HLN
Haleon — FY2024 Earnings Presentation
44 slides from Haleon's earnings presentation, February 2025
Slide 1: 2024 Full year results
2024 Full year results February 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 2024 Full year results
Slide 4: Strong performance, with 5.0% organic revenue growth and 9.8% organic operating profit growth
Strong performance, with 5.0% organic revenue growth1 and 9.8% organic operating profit growth1 71% of business gained or maintained share2 reflecting consumer preference for Haleon brands and strong in-market execution Proactively managing portfolio to simplify and accelerate, recycling capital int
Slide 5: Clear approach to deliver on growth ambitions
Clear approach to deliver on growth ambitions World class Competitive Strategy to Growth portfolio capabilities outperform ambitions Category-leading Human understanding + Household penetration 4-6% organic annual brands trusted science revenue growth 1 New and emerging Attractive Proven brand-build
Slide 6: Full year 2024 results and Q4 results
Full year 2024 results 5.0% 3.7% /1.3% 6.3% Organic revenue growth1 Price / Volume Mix Power Brand growth Q4 results Adjusted operating profit 1: 6.8% 2.7% /4.1% Increased 9.8% organically Organic Price / Volume Mix revenue growth1 Adjusted operating margin1: Strong cash generation 22.3% down 30bps
Slide 7: Oral Health
Oral Health Outperformance through continued strength in Power Brands 9.6% Sensodyne parodontax Launch of Gum Strengthen & Poligrip Ultimate All in One Clinical White the #1 innovation 2024 organic revenue growth1 in US Oral Health market2 Protect in EMEA and Active Ultimate Biting Power underpinned
Slide 8: Vitamins, minerals and supplements
Vitamins, minerals and supplements Share gain momentum underpinned by claims activation Centrum Caltrate 7.6% Geo-expansion and access Leveraging science Leveraging science 2024 organic revenue growth1 - Launched daily kits in China – Further clinical trials show - #1 Calcium brand globally with her
Slide 9: Over-the-counter: Pain Relief
Over-the-counter: Pain Relief Performance impacted by comparatives Voltaren Advil Panadol 0.1% Innovation driving growth Continued recovery Further innovation 2024 organic revenue growth1 – Repositioned Voltaren Sport in – Elevating brand equity - Launched Panadol Dual targeting younger demographic
Slide 10: Over-the-counter: Respiratory Health
Over-the-counter: Respiratory Health Performance impacted by weak cold and flu season Otrivin Nasal Mist Theraflu Contac 0.9% - Continued roll out to new - Launch of Theraflu-D Flu - Roll out of Contac cough markets delivering improved Relief Max Strength Syrups, to address shifting 2024 organic rev
Slide 11: Over-the-counter: Digestive Health & Other
Over-the-counter: Digestive Health & Other Organic growth across all three sub-categories - Digestive Health mid-single digit organic revenue growth driven 5.5% by Tums and ENO 2024 organic revenue growth1 - Skin Health high-single digit organic revenue growth driven by strong Bactroban performance.
Slide 12: Strong execution and financial discipline
Strong execution and financial discipline Initiatives to Continued improve efficiency Strong go-to-market financial discipline execution - Dual sourcing and complexity - Active portfolio management; reduction - Onboarded 1,600 new sales reps in with disposals of ChapStick and India with no disruptio
Slide 13: Increasing agility and productivity across Haleon
Increasing agility and productivity across Haleon Strengthening c. £300m Partly reinvested Haleon productivity to drive growth for long-term programme1 success • To be fully delivered by • Increased automation • Supporting medium-term end 2025 and process guidance improvement • Restructuring a numbe
Slide 14: Making progress on our environmental goals
Making progress on our environmental goals Tackling environmental issues affecting everyday health Targets 2024 Progress Carbon • Scope 1 & 2: Electric steam generators installed at two sites • Reduce net Scope 1 & 2 carbon emissions by • 50% reduction vs 2020 to significantly reduce Scope 1 100% by
Slide 15: Health inclusivity – a key differentiated focus for Haleon
Health inclusivity – a key differentiated focus for Haleon Groupwide aim to empower 50 million people a year by 2025 to be more included in opportunities for better everyday health Theraflu Rest & Recover Health Inclusivity Screener Dental Health education in US Fund offers families microgrants that
Slide 16: Dawn Allen, CFO
Dawn Allen CFO 2024 Full year results
Slide 17: 2024 – Financial Headlines
2024 – Financial Headlines Investing Revenue Profit Cash for Growth £11.2bn £7.1bn £2.5bn £1.9bn Revenue Adj. gross profit Adj. op profit Free cash flow +5.0% organic growth +8.1% organic growth +9.8% organic growth £0.5bn share buyback +3.7% Price completed +10.2% growth in A&P2 22.3%
Slide 18: 2024 organic revenue growth +5.0%
2024 organic revenue growth1 +5.0% £m ORG1 +5.0% (1.9)% 3.7% Net M&A2 Organic growth1 primarily driven by pricing (3.7)% 1.3% Price Volume/Mix H2 2024 organic growth more balanced, 11,302 Translational with volume/mix +3.4% and price +3.0% foreign 11,233 exchange Net M&A dilution reflects divestment
Slide 19: 2024 organic profit growth +9.8%
2024 organic profit growth1 +9.8% Strong operating leverage offset by divestments and translational FX £m (5.2)% 9.8% Net A&P spend +10.2%3 - focused on Power 2,549 M&A2 (6.5)% Brands and high growth markets Operating 2,500 leverage Translational Net M&A - divestment of ChapStick and FX Nicotine Rep
Slide 20: Income Statement
Income Statement % YoY % YoY £m 2024 2023 (AER) (Organic) Gross margin expansion driven by Revenue 11,233 11,302 (0.6) 5.0 pricing, productivity and benefit of inventory revaluation in H1 2024 Adjusted gross profit 1 7,099 7,001 1.4 8.1 % Adjusted gross margin 1 63.2% 61.9% 130bps 190bps SG&A increa
Slide 21: North America
North America 36% of 2024 revenue Revenue 2024 organic operating profit1 declined 2.1%: + Operating leverage 1.1% 2.3% (1.2)% + Productivity – Strong increase in A&P investment Organic growth1 Price Volume / mix – Absence of tax credit benefit in prior year Q4 organic revenue growth1: 2.4% with
Slide 22: Respiratory Health
Respiratory Health Soft cold and flu demand with unit sales running c. 10% below prior year levels Weekly US market cold and flu (million units) 25 C&F season 20 2022-23 2023-24 15 2024-25 10 5 Winter season Off season Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Source: Circana MULOC+Ecom Cough
Slide 23: EMEA & LATAM
EMEA & LATAM 41% of 2024 revenue Revenue 2024 organic operating profit1 increased 20.2%: + Operating leverage 7.9% 5.9% 2.0% + Productivity + Benefit of inventory revaluation in H1 2024 Organic growth1 Price Volume / mix – Strong increase in A&P investment Q4 organic revenue growth1: 9.8% with 5
Slide 24: APAC
APAC 23% of 2024 revenue Revenue 2024 organic operating profit1 increased 12.6%: + Operating leverage 6.0% 1.9% 4.1% + Productivity – Strong increase in A&P investment Organic growth1 Price Volume / mix Q4 organic growth1: 9.9% with 1.9% price and 8.0% volume/mix Profit Q4 performance reflects
Slide 25: Organic revenue growth contributors by region
Organic revenue growth contributors by region 1 7.9% 6.0% Oral Health largest growth contributor across all regions North America impacted by soft cold & flu season 1.1% APAC decline in Pain Relief from challenging comparative arising from easing of COVID-19 related restrictions in China ORG1 North
Slide 26: Adjusted diluted EPS growth +3.5%
Adjusted diluted EPS growth +3.5% 1 £m 2024 2023 % change Net finance costs Adjusted operating profit1 2,500 2,549 (1.9)% • Reduction driven by debt reduction and higher interest income from bond raise in September 2024 Net finance costs (302) (368) (17.9)% Non-controlling interest Adjusted tax1 (52
Slide 27: Adjusting items
Adjusting items £m 2024 2023 % change Net amortisation and impairment of intangible assets Adjusted operating profit1 2,500 2,549 (1.9)% • Includes £135m impairment related to Nexium from weaker market conditions in the PPI3 category Net amortisation and (147) (224) impairment of intangible assets1
Slide 28: Strong free cash flow generation
Strong free cash flow generation £m 2024 2023 Adjusted operating profit1 2,500 2,549 Non-cash movements P&L adjusting items1 (294) (553) • Includes £121m gain on disposal of NRT business outside US Non-cash movements2 481 586 Working capital Working capital and other movements3 207 (37) • Significan
Slide 29: Leverage reduced to 2.8x
Leverage reduced to 2.8x 1 £bn c. 4x 3.0x 2.8x Net debt / Net debt / Adjusted EBITDA2 Adjusted EBITDA2 Cost of bond debt3: 3.5% £(2.8)bn 75% fixed/25% floating4 10.7 Shareholder M&A returns €750m + £300m fixed notes raised 0.1 in September 2024 8.5 (1.9) 0.5 Other cash 7.9 0.6 Share movements £2.2bn
Slide 30: 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 • Continued investment in A&P • Divestment of non-core brands • £570m returned to shareholders and innovation, including including ChapStick and NRT through dividends1 Sensodyne Clini
Slide 31: 2025 guidance
2025 guidance Organic revenue growth expected to be 4-6% Organic operating profit growth ahead of organic revenue growth Other modelling considerations Net Interest, Tax, and non- Net M&A and Translational 2025 phasing controlling interest Foreign Exchange • Organic revenue and organic • Net interes
Slide 32: Brian McNamara, CEO
Brian McNamara CEO 2024 Full year results
Slide 33: Medium term guidance
Medium term guidance Annual organic revenue growth of 4-6%1 Organic operating profit growth ahead of organic revenue growth Net debt/EBITDA2 of around 2.5x Dividend to grow at least in line with adjusted earnings 1. Reconciliation/definition of IFRS to Adjusted results can be found in the Appendix 2
Slide 34: Strong performance, with 5.0% organic revenue growth and 9.8% organic operating profit growth
Strong performance, with 5.0% organic revenue growth1 and 9.8% organic operating profit growth1 71% of business gained or maintained share2 reflecting consumer preference for Haleon brands and strong in-market execution Proactively managing portfolio to simplify and accelerate, recycling capital int
Slide 35: Appendix
Appendix
Slide 36: Glossary
Glossary We use certain alternative performance measures to make financial, operating, and • Restructuring costs: From time to time, the Group may undertake business restructuring planning decisions and to evaluate and report performance. Adjusted Results and other programmes that are structural in
Slide 37: Historic quarterly growth across the categories
Historic quarterly growth across the categories Organic revenue growth1 2024 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Oral Health 10.6% 9.1% 8.2% 10.6% 9.6% 6.6% 15.4% 9.4% 11.5% 10.6% VMS 9.9% 8.5% 3.7% 8.2% 7.6% (3.7)% 2.7% 1.4% 3.1% 0.9% Pain Relief (4.8)% (4.0)% 3.1% 7.4% 0.1% 11.0% 14.9% 6.2% (1.8)%
Slide 38: Debt profile
Debt profile Net debt Group net Group net £m debt at 31 Dec 2024 debt at 31 Dec 2023 c.6.3 years Short-term borrowings1 1,487 656 Duration2 Long-term borrowings 8,640 8,800 Derivative financial liabilities 160 190 Cash and cash equivalents Derivative financial assets (2,250) (130) (1,044) (88) c.3.5
Slide 39: IFRS and Adjusted Income Statement
IFRS and Adjusted Income Statement Unaudited 12 months ended 31 December Gross Profit Operating Profit Income tax £m 2024 2023 2024 2023 2024 2023 IFRS Results 6,824 6,747 2,206 1,996 (435) (517) Net amortisation and impairment of intangible assets1 147 224 147 224 (35) (53) Restructuring costs2 123
Slide 40: IFRS and Adjusted Income Statement
IFRS and Adjusted Income Statement Unaudited 12 months ended 31 December Profit Diluted earnings attributable per share to shareholders (pence) £m 2024 2023 2024 2023 IFRS Results 1,442 1,049 15.7 11.3 Net amortisation and impairment of intangible assets1 112 171 1.2 1.8 Restructuring costs2 165 134
Slide 41: Reconciliation of FY organic growth
Reconciliation of FY organic growth Product categories 12 months to 31 December Digestive Oral Pain Respiratory Health and 2024 vs 2023 (%) Health VMS Relief Health Other Total Revenue growth 5.6 3.4 (3.3) (3.4) (7.2) (0.6) Organic adjustments — — — — 9.8 1.9 Effect of exchange rates 4.0 4.2 3.4 4.3
Slide 42: Reconciliation of quarterly organic growth
Reconciliation of quarterly organic growth North America EMEA & LatAm Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2024 vs 2023 (%) 2024 2024 2024 2024 2024 2024 vs 2023 (%) 2024 2024 2024 2024 2024 Revenue Growth (7.1) (1.4) (2.1) (3.7) (3.6) Revenue Growth 3.6 4.5 (1.6) 1.0 1.9 Organic Adjustments 0.2 1.0 2.7 3.
Slide 43: Free cash flow and Adjusted EBITDA
Free cash flow and Adjusted EBITDA Free cash flow Adjusted EBITDA2 Twelve months to 31 Dec Twelve months to 31 Dec £m 2024 2023 £m 2024 2023 Net cash inflow from operating activities 2,301 2,100 Adjusted operating profit2 2,500 2,549 Less: Capital expenditure1 (318) (336) Add: Depreciation – Propert
Slide 44: 2024 full year results
2024 full year results Jo Russell Rakesh Patel Emma White Head of Investor Relations Director Director Joanne.c.Russell@Haleon.com Rakesh.x.Patel@Haleon.com Emma.x.White@Haleon.com +44 7787 392441 +44 7552 484646 +44 7823 523562