Advil maker Haleon, the world's largest standalone consumer healthcare company, raised its annual revenue growth forecast on Wednesday, betting on demand for its oral and respiratory health products despite a cost-of-living squeeze.
Consumers are prioritizing spending on essential, daily use products amid high inflation in some parts of the world, boosting sales for companies like Haleon. U.S based rival Kenvue, the former consumer health unit of Johnson & Johnson that makes Tylenol and Benadryl, also forecast full-year profit above estimates in July.
Haleon now expects full-year organic revenue growth of between 7% to 8%, up from an earlier forecast of the top end of a 4% to 6% range. Analysts on average expect growth of 6.2%. The company's products include Sensodyne toothpaste and Centrum multivitamins.
The results come as GSK last week raised its full-year outlook, helped by its Shingrix shingles vaccine and HIV drugs, helping revive investor confidence in CEO Emma Walmsley. Both sets of results highlight the benefits of Haleon's spin off from GSK last year.
Organic revenue for the first half of the year grew 10.4%, beating estimates of 8.2%. Volumes increased 2.9% over a 7.5% rise in price mix. Strong sales of Theraflu during the period, due to a rise in cough, cold and flu cases globally, especially benefited the respiratory health business which posted 22% organic revenue growth.
Adjusted operating profits grew 8.9% to £1.27 billion for the first half of the year. Haleon launched a £300 million cost-cutting program in March.
