2025 Full Year Results

FY 2025 organic revenue growth² of +3.0% with 60%⁶ of business gaining/maintaining share

• North America ended the year as expected with FY organic growth of (0.4)% and appropriate level of inventory at drug channel, EMEA & LatAm grew +4.7% and Asia-Pacific grew +5.2%
• FY organic revenue growth +3.0% (+2.3% price and +0.7% volume/mix); Q4 +2.1%
• Oral Health continued to outperform with +7.9% organic revenue growth
• Headwind from a weak cold and flu season estimated to be c.150 bps impact in Q4 and c.40 bps for full year

Organic operating profit growth² +10.5% with organic operating margin² expansion of 160bps

• Productivity initiatives and pricing delivering +220 bps adjusted gross margin⁴ expansion
• Continued re-investment to drive growth with A&P +7.5% and R&D +7.7% at constant currency
• Good operating leverage with adjusted operating margin up 60bps at actual exchange rates
• Adjusted diluted EPS 18.8p, up 5.0%

Strong cash flow and disciplined capital allocation supporting shareholder returns

• Strong free cash flow of £1.9bn; excluding proceeds⁵ from ChapStick sale in 2024, FCF was up £194m
• Working capital cycle down 11 days allowing investment in capex to drive growth
• Closing leverage of 2.6x net debt/adjusted EBITDA² after £1.1bn in shareholder returns in FY 2025
• 7.6% increase in total full year dividend with proposed final dividend of 4.9p per ordinary share

FY 2026 outlook

• Organic revenue growth expected to be 3-5%
• Productivity initiatives and operating leverage expected to deliver high single digit adjusted operating profit growth at constant currency
• £500m allocated to share buybacks in 2026

Brian McNamara, Chief Executive Officer, said: 

“2025 was an important year for Haleon. We introduced our Win as One strategy and are already making good progress. Our brands again proved their resilience, and we continued to outperform the market, with 60% of the business gaining or maintaining share this year.

Organic revenue growth of 3% was below our medium-term expectations, primarily reflecting a weak cold & flu season and low consumer confidence in North America. We delivered strong gross margin improvement and double-digit organic profit growth, combined with strong cash generation. This was driven by excellent progress against our productivity programme and continued disciplined investment behind our brands, innovation and capabilities.

Looking ahead, we remain confident in our medium-term guidance underpinned by the implementation of our new operating model to drive growth and agility. While the consumer environment remains challenging near-term, we are even more focused on driving category growth and increasing our market outperformance.”

Outlook

For FY 2026 the Group expects:

• Organic revenue growth of 3%-5%
• High-single digit adjusted operating profit growth at constant currency
• Net interest c.£255m; Adjusted effective tax rate c.24.5%

Foreign exchange

The Group expects a foreign exchange translation headwind of c.(1)% to negatively impact both net revenue and adjusted operating profit respectively. This is based on current Bloomberg forward consensus rates averaged over 2026⁷.

Medium term guidance

Haleon’s medium-term guidance is as follows:

• 4-6% annual organic revenue growth
• High-single digit adjusted operating profit growth at constant currency

Adjusted operating profit growth is expected to be supported by c. 50 to 80bps (on average) per annum of adjusted gross profit margin expansion (at constant currency). This is expected to drive financial flexibility through the P&L to enable continued healthy investment in A&P and R&D. Together with continued optimisation of tax and interest, this should support strong adjusted EPS growth.

We believe optimal leverage for Haleon is around 2.5x net debt/adjusted EBITDA. We believe that this is the right level to enable the business to appropriately balance our capital allocation priorities of continued investment for growth, optionality for M&A, providing attractive shareholder returns and sustaining a strong investment grade credit balance sheet.

Strategy update

We are guided by our purpose to deliver better everyday health with humanity. At our Capital Markets Day in May 2025, we outlined our Win as One strategy that will unlock significant potential as we transform into an agile, world class consumer company through three key areas: growth, productivity and culture.

It will support our ambitions to reach 1 billion more consumers by 2030 and deliver industry-leading shareholder returns.

Growth

Leveraging our global footprint, scaling our innovations and capitalising on the strength and breadth of our superior brands, will enable us to deliver health in more hands. We are focused on three key areas:

Closing the incidence versus treatment gap: Sensodyne’s expanded clinical range—including Sensodyne Clinical White, Clinical Repair and Clinical Pronamel Enamel Strength—has driven strong uptake among younger consumers, achieving broad rollout across 30 markets by end of 2025. In Gum Health, a successful pilot launch of parodontax in China with a customised flavour and pack design for Chinese consumers was rolled out to 19 cities, with expert advocacy and sampling to patients driving high re-purchase rates. During 2026, Haleon expects to further activate parodontax in other markets including the US.

Innovation-led premiumisation: Otrivin Nasal Mist continued its global roll out into markets representing 50% of the nasal spray category (up from 11% in 2024), driving incremental penetration by recruiting over 50% non spray users in Sweden and the UK with high repurchase intent. In VMS, the expansion of Centrum Daily Kits across Asia-Pacific has delivered market share gains with over one million packs sold since launch. This 30-day supply of tailored vitamins for gender and age needs, now includes premium benefits such as cellular health and metabolic support.

Expanding our reach with lower income consumers: Haleon more than doubled rural India distribution to 600k outlets, boosting Rs.20 Sensodyne consumption, expanding ENO 3 in 1 reach and launching Rs.10 Centrum Recharge—selling 13m sachets with strong early repeat rates. Across Indonesia, Haleon launched a new four pack of Panadol with the aim of bringing new consumers into the brand. This pack format represents c.65% of category volume.

Productivity

Haleon is developing a more efficient and agile supply chain. Initiatives are expected to realise £800m in gross supply chain savings over the next five years and contribute to 50 to 80bps per annum (on average) of adjusted gross profit margin improvement at constant currency per annum. Haleon’s supply chain strategy is focused on a number of key pillars:

Immediate Accelerators for a near-term impact

• We have made strong progress reducing SKUs by c.26% (target 30% by 2028) and formulations by c.12% (target 25-30% by 2028) since the beginning of 2024
• A 22% reduction in packaging specifications has allowed better standardisation of cartons, whilst the consolidation of our artwork network into a single Centre of Excellence in Poland has delivered a 50% cost reduction
• A significant improvement in logistics costs was achieved by redefining the modes of shipment, increased container utilisation, optimising port charges, and greater commercial leverage on a global scale. Meanwhile, the creation of globalised engineering, building a technical development platform and an independent innovation supply chain will drive ongoing efficiencies.

Operational Excellence to drive improvement across daily operations through shifting to a culture of quality and performance

• Production performance or asset utilisation measured through overall equipment effectiveness (OEE), improved by seven points in 2025 with further progress expected in 2026

Build for Tomorrow focused on the mid to longer term horizon, with impact starting to be felt from 2027

• We are actively pursuing further improvements through the use of AI, including the automation of manual inspection and palletising processes using an AI vision system for label integration, whilst investment in AI cameras in Suzhou, China is helping to optimise manufacturing processes
• Across our supply network, we have undertaken a full assessment of potential transformations for network design. This provides a blueprint for building an efficient and fit for purpose manufacturing network over the medium-term.

Culture

In support of our Win as One strategy, we are shaping a culture that will help us to deliver our strategy and financial commitments. A world-class, agile and performance-focused consumer company, will be underpinned by our purpose to deliver better everyday health with humanity.

• During the year, we made good progress with continued engagement across our employee base. In our latest annual engagement survey, we saw an 82% engagement score.

Evolution of operating model

• In January 2026, Haleon announced the evolution of its operating model to drive growth and agility in support of its Win as One ambitions
• Haleon has created a new Chief Growth Officer (CGO) role. The CGO role will have responsibility for Haleon's category organisation, Marketing and Strategy functions, as well as a new global Commercial Excellence team. The CGO will lead Haleon's growth and innovation agenda in partnership with the R&D and Supply Chain functions. Working across these initiatives, the new CGO will be able to focus on effective allocation of resources to drive category growth and market share gains.
• The creation of six Operating Units (OUs) (North America, Europe, Middle East and Africa, Latin America, India Sub-Continent (ISC) and Asia Pacific (ex. ISC)) will provide greater focus on the significant growth opportunities in our key markets. Each OU is responsible for delivering business performance through the execution of Haleon's category strategies.
• The implementation of the operating model is expected to result in annualised gross cost savings of c. £175m-200m over the next two years, with a third of the savings to be delivered in 2026 and the remainder in 2027. The savings will be delivered through leveraging our new Growth function, streamlining our organisation to be category led and leveraging automation and AI. We will engage with employees and representatives as appropriate. We expect to incur one-time costs similar to the annualised gross savings with a higher proportion of costs weighted towards 2026.

About Haleon plc

Haleon (LSE/NYSE: HLN) is a global leader in consumer health, with a purpose to deliver better everyday health with humanity. Haleon's product portfolio spans six major categories - Oral Health, Vitamins, Minerals and Supplements (VMS), Pain Relief, Respiratory Health, Digestive Health and Therapeutic Skin Health and Other. Its long-standing brands, such as Advil, Centrum, Otrivin, Panadol, parodontax, Polident, Sensodyne, Theraflu and Voltaren, are built on trusted science, innovation and deep human understanding.