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Haleon Lowers Annual Outlook After Cold Medicine Slump

A lackluster respiratory season has forced Haleon to revise its annual revenue targets downward. The consumer healthcare giant, known for brands like Advil, now expects organic revenue growth of roughly 2.5%, retreating from its previous guidance of 3% to 5% following a sharp decline in North American cold and flu sales.

Haleon Lowers Annual Outlook After Cold Medicine Slump

The company reported a 2% dip in organic revenue for its respiratory health category, a stark contrast to analysts' earlier hopes that rising flu incidences in the U.S. and Europe would bolster the quarter. This regional struggle mirrors a broader trend seen across the sector, with firms like Reckitt and Danone also grappling with stagnant growth in North American markets.

Despite the respiratory drag, the business found stability elsewhere. Haleon posted a 2.6% rise in overall organic revenue to 2.87 billion pounds, or $3.82 billion. Performance was notably buoyed by an 8.8% surge in its oral health category and solid 6.9% organic growth in international territories. Looking to appease investors, the company announced a share buyback program of up to 500 million pounds, scheduled for completion by February 2027.

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