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Sensodyne maker Haleon slips as sales growth concerns overshadow profit beat
['Raechel Thankam Job', 'Richa Naidu', 'July', 'Min Read']
Yahoo Finance
The British maker of Theraflu and Flonase cold medicines and Sensodyne toothpaste reported first-half organic revenue growth of 2.6%, in line with forecasts, but meaning a stronger second half is needed to hit its medium-term target of 4% to 6% growth.
Amid cautious consumer spending, Haleon has been expanding distribution and improving shelf positioning in the United States, its largest market.
STRONGER SECOND HALF"We're going to have a stronger second half than first half, and we're confident in that," CEO Brian McNamara told analysts, adding that growth would be driven by some emerging markets and a recovery in demand for cough-and-cold products.
Haleon's first-half adjusted operating profit of £1.36 billion ($1.81 billion) topped expectations of £1.32 billion in a company-compiled poll.
Still, Jefferies analysts said: "This is not quite good enough, we think," arguing that stronger underlying sales growth was needed.