The following is a summary of the Haleon Plc (HLN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Haleon reported Q1 revenue of £2.9 billion, reflecting 3% organic growth.
Organic revenue growth was driven by a 5% price rise, despite volume/mix decline of 2%.
The adjusted operating profit stood at £707 million, marking a 12.8% organic increase, and gross profit organically rose by 5%.
Health revenues showed a growth of 10.6%, VMS revenue rose 9.9% but respiratory revenues experienced a decline.
Developed and emerging markets saw organic growth of 0.5% and 7.7% respectively.
Haleon completed a share buyback of £315 million, reducing the number of shares in issue by around 1.1%.
The closing of a manufacturing facility in Maidenhead, leading to a restructuring cost of £90 million for the next two years, is part of Haleon's productivity plans.
Business Progress:
Haleon is evolving to become more agile and competitive.
The company is executing a productivity program that is delivering expected savings and increased investment in the business.
The planned closure of a Maidenhead facility and transfer of operations to Slovakia is a step towards building a more efficient global supply chain.
CFO Tobias Hestler will be succeeded by Don Ellen at the end of the year.
Haleon anticipates a speedy payback and unspecified incremental savings from the shift of manufacturing to Slovakia.
The company has increased Advil & Promotions (A&P) investment in Q1 and expects to continue doing so.
The growth in the US market, unveiling of Sensodyne clinical worldwide, and the anticipated launch of an erectile dysfunction cream demonstrate Haleon's market expansion efforts.
The company is also focusing on market expansion through their Sensodyne oral care product and the strength of their distribution model, particularly in markets like Central and Western Europe.
More details: Haleon IR
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