Haleon shares hit as cuts revenue outlook, accelerates Brazil changes

Shares in Haleon PLC dropped in London on Thursday morning after the consumer healthcare company lowered its annual organic revenue growth outlook and announced plans to accelerate changes to its Brazilian operations that will hit revenue.

The London-based maker of Sensodyne toothpaste and Panadol painkillers now expects organic revenue growth of around 2.5% in 2026, compared with its previous guidance of between 3.0% and 5.0%.

Haleon also expects high-single-digit percentage growth in adjusted operating profit at constant currency for the full year.

Shares in the company fell 13% to 323.90 pence in London on Thursday morning.

Haleon also said it plans to accelerate changes to its strategy in Brazil, bringing forward measures originally scheduled to take place throughout 2027 into the fourth quarter of 2026.

The changes are expected to reduce fourth-quarter net revenue by between £15 million and £20 million.

The acceleration of the previously planned changes in Brazil come after leftist President Luiz Inacio Lula da Silva won a dramatic run-off election on Sunday to stay in office.

The revised outlook came despite Haleon reporting a 2.5% increase in third-quarter revenue to £2.87 billion from a year earlier, with organic revenue growth of 2.6%.

Organic growth was driven by a 2.1% contribution from price increases and a 0.5% contribution from volume and product mix.

By product category, Oral Health delivered the strongest performance, with organic revenue rising 8.8%, while Digestive Health grew 2.5%.

Pain Relief recorded growth of 0.5%, while Vitamins, Minerals and Supplements declined 0.5%. Respiratory Health revenue fell 2.0% on an organic basis.

Geographically, organic revenue in Asia Pacific increased 3.9%, while North America recorded growth of 2.5%. Europe declined 0.6%.

Separately, Haleon announced the launch of a £500 million share buyback programme, which will be managed by Citigroup Global Markets Ltd and completed no later than February 19 next year.

Haleon's medium-term financial targets remain annual organic revenue growth of between 4.0% and 6.0% and high-single-digit adjusted operating profit growth at constant currency.

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