Haleon has become the latest consumer goods company to reduce its annual revenue growth forecast due to declining demand for cough, cold, and flu medications. The maker of Advil and Sensodyne reported third-quarter organic sales growth of 2.6%, missing expectations, and now anticipates full-year growth of approximately 2.5%, down from the previous 3–5% range. Shares fell nearly 16%.
The company cited a weak cold and flu season, particularly in North America, alongside supply disruptions for Centrum multivitamins in China. Despite the revenue shortfall, Haleon maintained its adjusted operating profit outlook. Rival Reckitt Benckiser also recently cut guidance, pointing to similar seasonal trends and manufacturing issues.
Haleon CEO Brian Mc Namara emphasized the need for "difficult choices" to restore volume growth and meet medium-term targets. Analysts at RBC Capital Markets noted the share drop was not overly harsh but questioned the feasibility of Haleon’s 4–6% long-term sales goal.
Source: Financial Times Companies · Summarized by HeadlinesBriefing