Full Year 2024 Haleon PLC Earnings Call Transcript
Key Points
- Haleon PLC (HLN) reported strong momentum in emerging markets, particularly in India and China, contributing to overall growth.
- The oral health division is performing well, with plans to expand distribution and geographical rollout, supported by strong innovation.
- The company is confident in achieving 4% to 6% growth for the full year, driven by innovation and market expansion strategies.
- Haleon PLC (HLN) has increased A&P investment by 10.2% to support growth, particularly in expert coverage and sampling.
- The company has a clear capital allocation strategy, including a GBP500 million share buyback, while maintaining headroom for bolt-on M&A opportunities.
- The company experienced a low cold and flu season, leading to higher inventory levels and impacting respiratory health and pain relief categories.
- FX headwinds are expected to continue in 2025, affecting both top-line and margin, with emerging markets contributing to currency fluctuations.
- The Eroxon brand launch has been slower than expected, impacting initial trial and results, though it is incorporated in the full-year guidance.
- There is pressure on inventory levels in the US drug channel due to struggling retailers, affecting cash management and inventory dynamics.
- The company faces challenges in working capital optimization, particularly in inventory management, which remains a significant opportunity for improvement.
Good morning, and welcome to Haleon's full year 2024 Q&A call. I'm Jo Russell, Head of Investor Relations, and I'm joined this morning by Brian McNamara, Chief Executive Officer; and Dawn Allen, our Chief Financial Officer.
Just remind listeners on the call of the discussions today, the company may make certain forward-looking statements including those refer to our estimates, plans and expectations. We this morning's announcement the company's UK and SEC filings in details, including factors that could lead to actual results to differ materially from those expressed in or implied by such broadly disclosure.
We have posted today's presentation on the website this morning. We prepared remarks on video running to the results in detail. So hopefully, you all had the chance to see that ahead of this call.
And with that, I'll go straight to opening to all the Q&A. Thank you, and over to Brian and Dawn.
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