Earnings Release • Oct 31, 2024
Earnings Release
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"Third quarter trading was strong with momentum across the business underpinned by the strength of our brand portfolio driving market share gains. Oral Health was again a particular highlight, with organic revenue up high-single digit as Sensodyne and parodontax continued to drive growth. All three regions delivered volume/mix growth during the quarter, with North America showing the improvement we expected and China up strongly. We also made significant progress delivering on our capital allocation priorities - completing the disposal of our NRT business outside the US, agreeing to increase our stake in our China joint venture, and completing our share buyback allocation for 2024. Having achieved organic revenue and organic profit growth of 4.4% and 9.7% respectively year-to-date, we are well on track to deliver our full-year 2024 guidance."
| Adjusted results | Reported results | ||||
|---|---|---|---|---|---|
| Period ended 30 September (unaudited) | vs 2023 | 2024 | vs 2023 | ||
| Three months organic revenue growth2 Nine months organic revenue growth2 |
6.1% 4.4% |
Three months revenue Nine months revenue |
£2,780m £8,474m |
(0.6)% (0.7)% |
1. All numbers within the release are unaudited and are organic unless referenced otherwise. The commentary in this announcement contains forward looking statements and should be read in conjunction with the cautionary note in the Appendix
Organic operating profit growth, Adjusted operating profit, Adjusted operating profit margin are non-IFRS measures; definitions and calculations of non-IFRS measures can be found in the Appendix
Advertising and Promotion at constant currency and excluding the net impact of M&A
Net M&A includes the disposal of Lamisil, ChapStick and the impact of Manufacturing Service Agreements (MSAs)
For FY 2024, the Company continues to expect:
As shared in the Aide Memoire dated 7 October 2024, whilst we do not guide specifically on foreign exchange, translational foreign exchange based on spot rates as at 3 October 2024 and using FY 2023 results as a base for FY 2024 would have a negative impact of c.(4)% on revenue and negative impact of c.(6-6.5)% on Adjusted operating profit.
Over the medium term, the Company expects:
Haleon's capital allocation priorities are unchanged and Q3 saw good progress.
On 27 September, the Company announced an agreement to acquire an additional 33% interest from its partners in the joint venture (JV) Tianjin TSKF Pharmaceutical Co. Ltd (TSKF), through which Haleon conducts its OTC business in China, for RMB 4,465m (c.£0.5bn). This will result in Haleon having an 88% interest in the JV. TSKF accounted for c.40% of Haleon's China revenues in FY 2023. China is a key strategic market for Haleon and this acquisition will deliver greater control with increased strategic and operational flexibility. Subject to customary closing conditions, including the approval of Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited's (DRTG) shareholders and applicable regulatory clearances, the transaction is anticipated to close by the end of 2024 and be accretive to EPS.
On 30 September, the Company announced completion of the disposal of the NRT business outside the US for an upfront payment of £458m, with further deferred, performance-based consideration of up to £42m payable during 2025 and H1 2026.
On 1 October, Haleon announced that it had agreed to make an off-market purchase of 60.5m of our ordinary shares from Pfizer Inc. for a consideration of £230m. Of the total, £115m worth of shares represent the remainder of the £500m allocated to share buybacks in 2024 (as announced on 29 February 2024) and were subsequently cancelled. The remainder of shares acquired from Pfizer (£115m worth) are being held as treasury shares for the purposes of satisfying Haleon's obligations under its existing employee share plans in 2025. Haleon also announced that it had ended its on-market share buyback programme launched on 1 August 2024.
A short presentation followed by Q&A will be hosted by Tobias Hestler, Chief Financial Officer at 9:00am GMT (10:00am CET) on 31 October 2024, which can be accessed at www.haleon.com/investors/.
For analysts and shareholders wishing to ask questions on the Q&A call, please use the dial-in details below which will have a Q&A facility:
| UK: | +44 800 358 1035 |
|---|---|
| US: | +1 855 979 6654 |
| All other: | +44 20 3936 2999 |
| Passcode: | 401552 |
An archived webcast of the Q&A call will be available later on the day of the results and can be accessed at www.haleon.com/investors/
| FY 2024 Results | 27 February 2025 |
|---|---|
| Q1 2025 Trading Statement | 1 May 2025 |
| Investors | Media | ||||
|---|---|---|---|---|---|
| Rakesh Patel | +44 7552 484646 | Zoë Bird | +44 7736 746167 | ||
| Emma White | +44 7823 523562 | Gemma Thomas | +44 7985 175048 | ||
| Email: [email protected] | Email: [email protected] |
Haleon (LSE / NYSE: HLN) is a global leader in consumer health, with a purpose to deliver better everyday health with humanity. Haleon's product portfolio spans five major categories - Oral Health, Pain Relief, Respiratory Health, Digestive Health and Other, and Vitamins, Minerals and Supplements (VMS). Its longstanding brands - such as Advil, Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident, parodontax and Centrum - are built on trusted science, innovation and deep human understanding.
For more information please visit www.haleon.com
| Revenue (£m) | Revenue change (%) | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | Organic1 | Reported | ||
| Oral Health | 810 | 790 | 8.2% | 2.5% | |
| VMS | 407 | 410 | 3.7% | (0.7)% | |
| Pain Relief | 628 | 636 | 3.1% | (1.3)% | |
| Respiratory Health | 456 | 439 | 9.1% | 3.9% | |
| Digestive Health and Other | 479 | 523 | 5.9% | (8.4)% | |
| Group revenue | 2,780 | 2,798 | 6.1% | (0.6)% |
Revenue by product category for the three months ended 30 September:
All commentary below refers to organic revenue growth unless otherwise stated.
Key category performance was as follows:
Organic revenue growth was sustained in the high-single digit range, up 8.2%. High-single digit growth in Sensodyne was underpinned by performance in India, US and a number of European markets including UK and Germany. The roll-out of Sensodyne Clinical White continues to progress well, now in 11 markets with strong consumption growth. parodontax grew double digit with strong performance across Middle East & Africa and Europe. We recently launched parodontax in China where early consumer feedback has been encouraging. Denture Care was up mid-single digit with South East Asia & Taiwan and Central & Eastern Europe seeing good growth. Aquafresh declined low-single digit with a double digit decline in North America.
Organic revenue grew 3.7%. Caltrate grew double digit driven by China where sales were ahead of the market. Centrum was broadly flat driven by a tough comparative in the US (Q3 2023: +14%) and in China (Q3 2023: +22%). In both markets, share continued to grow. Elsewhere, Centrum grew double digit in Middle East & Africa and South East Asia & Taiwan. Emergen-C sales were up low single digit.
Organic revenue growth of 3.1% was driven by mid-single digit growth in Advil. Voltaren was flat with strength in Middle East & Africa broadly offset by a decline in Germany. Panadol declined mid-single digit against a strong comparative in Middle East & Africa and market weakness in Australia. Across our Local Growth Brands, Fenbid in China grew strongly reflecting the proactive inventory management actions taken in Q3 2023 following the easing of COVID-19 related restrictions. Grand-Pa in South Africa also grew strongly.
Organic revenue increased 9.1%. The US benefitted from the shipment of reformulated products which do not include phenylephrine following proactive inventory reduction during H1 2024. Theraflu and Robitussin were each up double digit. Otrivin was up high-single digit supported by innovation including Otrivin Nasal Mist. Allergy revenue declined high-single digit reflecting normal inventory reductions following a weak season.
Organic revenue grew +5.9% with Digestive Health up high-single digit, lapping the retailer destock seen in North America in the prior-year period. Within the category, Tums grew double digit and ENO was up mid-single digit. Nexium revenue was flat. Smokers Health was up mid-single digit. Skin Health also grew mid-single digit with strength in Fenistil. Across the category, reported revenue declined 8.4% reflecting the divestments of Lamisil and ChapStick.
| Revenue (£m) | Revenue change (%) | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Reported | Organic1 | Price1 | Vol/Mix1 | |
| North America | 997 | 1,018 | (2.1)% | 4.8% | 2.4% | 2.4% |
| EMEA and LatAm | 1,136 | 1,155 | (1.6)% | 6.1% | 5.3% | 0.8% |
| APAC | 647 | 625 | 3.5% | 8.2% | 1.1% | 7.1% |
| Group | 2,780 | 2,798 | (0.6)% | 6.1% | 3.3% | 2.8% |
All commentary below refers to organic revenue growth unless otherwise stated.
Key category performance was as follows:
Reported operating profit increased by +20.7% at actual exchange rates to £705m (Q3 2023: £584m), and reported operating profit margin increased by 450bps to 25.4% at actual exchange rates (Q3 2023: 20.9%). This included £121m gain on disposal of the NRT business outside the US.
Adjusted operating profit declined 7.2% at actual exchange rates to £639m (Q3 2023: £689m). FX reduced adjusted operating profit by 10.0% (£69m) and net M&A reduced it by 4.6% (£30m). Organic profit growth was +7.4% driven by continued operating leverage, particularly through gross margin expansion, which enabled strong investment in A&P. The prior-year period included the benefit of a tax credit in North America which did not repeat. Adjusted operating profit margin was 23.0% (up 30bps organically and down 160bps at actual exchange rates).
The information included here is being made public this quarter in connection with the Registration Rights Agreement dated 1 June 2022 among Haleon and Pfizer.
Revenue by product category for the nine months ended 30 September:
| Revenue (£m) | Revenue change (%) | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | Organic1 | Reported | ||
| Oral Health | 2,493 | 2,379 | 9.3% | 4.8% | |
| VMS | 1,264 | 1,226 | 7.3% | 3.1% | |
| Pain Relief | 1,931 | 2,041 | (2.1)% | (5.4)% | |
| Respiratory Health | 1,244 | 1,278 | 1.6% | (2.7)% | |
| Digestive Health and Other | 1,542 | 1,612 | 5.3% | (4.3)% | |
| Group revenue | 8,474 | 8,536 | 4.4% | (0.7)% |
All commentary below refers to organic revenue growth unless otherwise stated.
Organic revenue grew 9.3%, with all three Power Brands delivering strong growth. Sensodyne was up double digit due to strong performance in the US, India, Middle East & Africa, and China. parodontax grew double digit. Denture Care grew high-single digit with particularly strong growth in Central & Eastern Europe.
Organic revenue grew 7.3% with mid-single digit growth in Centrum underpinned by performance in the US, South-East Asia and Taiwan and Latin America. Caltrate grew double digit with continued strong performance in China. Emergen-C sales grew mid-single digit.
Organic revenue declined 2.1%. As expected, performance reflected tough comparatives from H1 2023 due to strong demand for Fenbid in China following the lifting of COVID-19 related restrictions, and with Advil in Canada from elevated demand in the prior year period. These impacts both fell away in the third quarter. Panadol saw a mid-single digit decline largely driven by a tough comparative in Middle East & Africa along with shipping delays.
Organic revenue increased 1.6%. Performance reflected the lapping of strong cold and flu comparatives in the first half of the year and significantly elevated Contac demand in China in Q1 2023 from the lifting of COVID-19 related restrictions. Theraflu was up mid-single digit with strength in Central & Eastern Europe and Latin America. Otrivin grew mid-single digit underpinned by innovation including Otrivin Nasal Mist with double digit growth in Central and Eastern Europe. Allergy sales were down low-single digit reflecting a soft season.
Organic revenue was up 5.3%, with Digestive Health up mid-single digit driven by high-single digit growth in Tums and ENO, partly offset by a decline in Nexium. Smokers Health revenue increased midsingle digit and Skin Health brands grew high-single digit.
| Revenue (£m) | Revenue change (%) | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | Reported | Organic1 | Price1 | Vol/Mix1 | ||
| North America | 2,953 | 3,064 | (3.6)% | 0.7% | 2.9% | (2.2)% | |
| EMEA and LatAm | 3,553 | 3,478 | 2.2% | 7.3% | 6.1% | 1.2% | |
| APAC | 1,968 | 1,994 | (1.3)% | 5.0% | 1.9% | 3.1% | |
| Group | 8,474 | 8,536 | (0.7)% | 4.4% | 4.0% | 0.4% |
Price and Volume/Mix are components of Organic Revenue Growth. Definitions and calculations of non-IFRS measures can be found in the Appendix.
Reported revenue is calculated at the average rate for the period. Organic revenue is calculated at constant currency. The difference between Reported and Organic revenue growth is predominantly due to adjustment to recalculate the reported results as if they had been generated at prior year exchange rates. Definitions and calculations of non-IFRS measures can be found in the Appendix.
All commentary below refers to organic revenue growth unless otherwise stated.
Reported operating profit increased by 7.6% at actual exchange rates to £1,856m (9m 2023: £1,725m), and reported operating profit margin increased by 170bps at actual exchange rates to 21.9% (9m 2023: 20.2%). This included £121m gain on disposal of the NRT business outside the US.
Adjusted operating profit decreased by 1.4% at actual exchange rates to £1,932m (9m 2023: £1,960m). FX reduced adjusted operating profit by 7.8% (£153m) and net M&A reduced it by 3.3% (£60m). Organic operating profit increased 9.7%. Good operational leverage, particularly through gross margin expansion, as well as efficiencies enabled high-single digit growth in A&P at constant currency and excluding the net impact of M&A.
As a result of the above, adjusted operating profit margin was 22.8%, up 120bps organically and down 20bps at actual exchange rates.
| 2024 | 2023 | ||
|---|---|---|---|
| Notes | £m | £m | |
| Revenue | 2 | 2,780 | 2,798 |
| Cost of sales | (1,032) | (1,082) | |
| Gross profit | 1,748 | 1,716 | |
| Selling, general and administration | (1,091) | (1,058) | |
| Research and development | (76) | (75) | |
| Other operating income/ (expense) | 124 | 1 | |
| Operating profit | 2 | 705 | 584 |
| Finance income | 12 | — | |
| Finance expense | (90) | (88) | |
| Net finance costs | (78) | (88) | |
| Net monetary gain arising from hyperinflationary economies1 | (1) | — | |
| Profit before tax | 626 | 496 | |
| Income tax | 5 | (127) | (122) |
| Profit after tax for the period | 499 | 374 | |
| Profit attributable to shareholders of the Group | 485 | 365 | |
| Profit attributable to non-controlling interests | 14 | 9 |
FOR THE NINE MONTHS ENDED 30 SEPTEMBER (unaudited)
| 2024 | 2023 | ||
|---|---|---|---|
| Notes | £m | £m | |
| Revenue | 8,474 | 8,536 | |
| Cost of sales | (3,178) | (3,270) | |
| Gross profit | 5,296 | 5,266 | |
| Selling, general and administration | (3,346) | (3,320) | |
| Research and development | (220) | (217) | |
| Other operating income/ (expense) | 126 | (4) | |
| Operating profit | 1,856 | 1,725 | |
| Finance income | 43 | 30 | |
| Finance expense | (283) | (299) | |
| Net finance costs | (240) | (269) | |
| Net monetary gain arising from hyperinflationary economies1 | 6 | — | |
| Profit before tax | 1,622 | 1,456 | |
| Income tax | (369) | (352) | |
| Profit after tax for the period | 1,253 | 1,104 | |
| Profit attributable to shareholders of the Group | 1,211 | 1,052 | |
| Profit attributable to non-controlling interests | 42 | 52 | |
| Basic earnings per share (pence) | 13.2 | 11.4 | |
| Diluted earnings per share (pence) | 13.2 | 11.3 |
1 Application of IAS 29 'Financial Reporting in Hyperinflationary Economies' has been applied effective 1 January 2024.
This document contains certain statements that are, or may be deemed to be, "forward-looking statements" (including for purposes of the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Forward-looking statements give Haleon's current expectations and projections about future events, including strategic initiatives and future financial condition and performance, and so Haleon's actual results may differ materially from what is expressed or implied by such forward-looking statements. Forward-looking statements sometimes use words such as "expects", "anticipates", "believes", "targets", "plans", "intends", "aims", "projects", "indicates", "may", "might", "will", "should", "potential", "could" and words of similar meaning (or the negative thereof). All statements, other than statements of historical facts, included in this presentation are forward-looking statements. Such forward-looking statements include, but are not limited to, statements relating to future actions, prospective products or product approvals, delivery on strategic initiatives (including but not limited to acquisitions and disposals, realisations of efficiencies and responsible business goals), future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results.
Any forward-looking statements made by or on behalf of Haleon speak only as of the date they are made and are based upon the knowledge and information available to Haleon on the date of this document. These forward-looking statements and views may be based on a number of assumptions and, by their nature, involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond Haleon's control or precise estimate. Such risks, uncertainties and other factors that could cause Haleon's actual results, performance or achievements to differ materially from those in the forward-looking statements include, but are not limited to, those discussed under "Risk Factors" on pages 193 to 201 in Haleon's Annual Report and Form 20-F 2023. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.
Subject to our obligations under English and U.S. law in relation to disclosure and ongoing information (including under the Market Abuse Regulations, the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should, however, consult any additional disclosures that Haleon may make in any documents which it publishes and/or files with the SEC and take note of these disclosures, wherever you are located.
No statement in this document is or is intended to be a profit forecast or profit estimate.
We use certain alternative performance measures to make financial, operating, and planning decisions and to evaluate and report performance. We believe these measures provide useful information to investors and as such, where clearly identified, we have included certain alternative performance measures in this document to allow investors to better analyse our business performance and allow greater comparability. To do so, we have excluded items affecting the comparability of period-overperiod financial performance. Adjusted Results and other non-IFRS measures may be considered in addition to, but not as a substitute for or superior to, information presented in accordance with IFRS.
Adjusted results comprise adjusted gross profit, adjusted gross profit margin, adjusted selling, general and administration (SG&A), adjusted research and development (R&D), adjusted other operating income/(expense), adjusted operating profit, adjusted operating profit margin, adjusted income tax, adjusted effective tax rate, adjusted profit attributable to shareholders, adjusted diluted earnings per
share. Adjusted results exclude net amortisation and impairment of intangible assets, restructuring costs, transaction-related costs, separation and admission costs, and disposals and others, in each case net of the impact of taxes (where applicable) (collectively the Adjusting items).
Management believes that adjusted results, when considered together with the Group's operating results as reported under IFRS, provide investors, analysts and other stakeholders with helpful complementary information to understand the financial performance and position of the Group from period to period and allow the Group's performance to be more easily comparable.
Adjusted Results exclude the following items (net of the impact of taxes, where applicable):
Net impairment of intangibles, impairment of goodwill and amortisation of acquired intangibles excluding computer software. These adjustments are made to reflect the performance of the business excluding the effect of acquisitions.
From time to time, the Group may undertake business restructuring programmes that are structural in nature and significant in scale. The cost associated with such programmes includes severance and other personnel costs, professional fees, impairments of assets, and other related items.
Transaction related accounting or other adjustments related to significant acquisitions including deal costs and other pre-acquisition costs when there is certainty that an acquisition will complete. It also includes costs of registering and issuing debt and equity securities and the effect of inventory revaluations on acquisitions.
Costs incurred in relation to and in connection with Separation, UK Admission and registration of the Company's Ordinary Shares represented by the Company's American Depositary Shares (ADSs) under the US Securities Exchange Act of 1934 and listing of ADSs on the NYSE (the US Listing). These costs are not directly attributable to the sale of the Group's products and specifically relate to the foregoing activities, affecting comparability of the Group's financial results in historical and future reporting periods.
Includes gains and losses on disposals of assets, businesses and tax indemnities related to business combinations, legal settlement and judgements, impact of changes in tax rates and tax laws on deferred tax assets and liabilities, retained or uninsured losses related to acts of terrorism, significant product recalls, natural disasters and other items. These gains and losses are not directly attributable to the sale of the Group's products and vary from period to period, which affects comparability of the Group's financial results. In addition, these gains and losses include net monetary gains or losses arising from hyperinflationary economics as this affects comparability of the Group's financial results. From period to period, the Group will also need to apply judgement if items of unique nature arise that are not specifically listed above.
The following tables set out reconciliation between IFRS and Adjusted Results for the three months ended 30 September 2024 and 30 September 2023.
| £m | IFRS Results |
Net amortisation and impairment of intangible assets1 |
Restructuring costs2 |
Transaction- related costs |
Separation and admission costs |
Disposals and costs3 |
Adjusted Results |
|---|---|---|---|---|---|---|---|
| 2024 | |||||||
| Revenue | 2,780 | — | — | — | — | — | 2,780 |
| Operating profit | 705 | 7 | 47 | — | 3 | (123) | 639 |
| Operating profit margin % |
25.4% | 23.0% | |||||
| 2023 | |||||||
| Revenue | 2,798 | — | — | — | — | — | 2,798 |
| Operating profit | 584 | 7 | 60 | 1 | 34 | 3 | 689 |
| Operating profit margin % |
20.9% | 24.6% |
Net amortisation and impairment of intangible assets: includes impairment of intangible assets of £(2m) (2023: nil), and amortisation of intangible assets excluding computer software £6m (2023: £7m).
Restructuring costs: In 2024 it includes £5m of non-cash costs.
Disposal and others: In 2024 it includes £(121)m gain from disposal of Nicotine Replacement Therapy business outside the US.
The Group's reporting currency is Pounds Sterling, but the Group's significant international operations give rise to fluctuations in foreign exchange rates. To neutralise foreign exchange impact and to better illustrate the change in results from one year to the next, the Group discusses its results both on an "as reported basis" or using actual exchange rates (AER) (local currency results translated into Pounds Sterling at the prevailing foreign exchange rate) and using constant currency exchange rates (CER). To calculate results on a constant currency basis, prior year average exchange rates are used to restate current year comparatives except for the local currency of entities that operate in hyperinflationary economies. These currencies are translated into Pound Sterling using the prior year closing exchange rate. The principal currencies and relevant exchange rates in the key markets where the Group operates are shown below.
| Nine months to 30 September | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Average rates: | |||
| US\$/£ | 1.28 | 1.24 | |
| Euro/£ | 1.18 | 1.15 | |
| CNY/£ | 9.19 | 8.75 |
Our organic growth measures take our adjusted results and further exclude the impact of divestments, acquisitions, manufacture and supply agreements (MSAs) relating to divestments and closure production sites, and the impact of foreign currency exchange movements including changes in currency and price growth in excess of 26% in hyperinflationary economies from one period to the next. Inflation of 26% per year compounded over three years is one of the key indicators within IAS 29 to assess whether an economy is deemed to be hyperinflationary.
The Group believes discussing organic revenue growth and organic operating profit growth contributes to the understanding of the Group's performance and trends because it allows for a year-on-year comparison of revenue and operating profit in a meaningful and consistent manner.
Organic measures are calculated period to period as follows, using prior year exchange rates to restate current year comparatives except for the local currency of entities that operate in hyperinflationary economies. These currencies are translated into Pound Sterling using the prior year closing exchange rate.
To calculate organic growth for the period, organic measures for the prior year are subtracted from organic measures in the current year and divided by organic measures in the prior year.
Organic revenue growth by individual geographical segment is further discussed by price and volume/mix changes, which are defined as follows:
– Price: Defined as the variation in revenue attributable to changes in prices during the period. Price excludes the impact to organic revenue growth due to (i) the volume of products sold during the period and (ii) the composition of products sold during the period. Price is calculated as current year net price minus prior year net price multiplied by current year volume. Net price is the sales price, after deduction of any trade, cash or volume discounts that can be reliably estimated at point of sale. Value added tax and other sales taxes are excluded from the net price. In determining changes in price, we exclude the impact of price growth in excess of 26% per year in hyperinflationary economies as explained above.
– Volume/Mix: Defined as the variation in revenue attributable to changes in volumes and composition of products sold in the period.
The following tables reconcile reported revenue growth and reported operating profit growth to organic revenue growth and organic operating profit growth, respectively, for the periods presented.
| Three months ended 30 September 2024 vs 2023 (%) |
Geographical Segments | ||||
|---|---|---|---|---|---|
| North America |
EMEA and LatAm |
APAC | Total | ||
| Revenue growth | (2.1) | (1.6) | 3.5 | (0.6) | |
| Organic adjustments | 2.7 | 1.3 | 1.2 | 1.8 | |
| Effect of exchange rates | 4.2 | 6.4 | 3.5 | 4.9 | |
| Organic revenue growth1 | 4.8 | 6.1 | 8.2 | 6.1 | |
| Price | 2.4 | 5.3 | 1.1 | 3.3 | |
| Volume/Mix | 2.4 | 0.8 | 7.1 | 2.8 |
1 Excludes c.2% of price growth due to hyperinflation for the Group.
| Geographical Segments | |||||
|---|---|---|---|---|---|
| Three months ended 30 September 2023 vs 2022 (%) |
North America |
EMEA and LatAm |
APAC | Total | |
| Revenue growth | (7.5) | 1.7 | (4.6) | (3.3) | |
| Organic adjustments | — | — | 0.1 | — | |
| Effect of exchange rates | 6.0 | 9.1 | 10.4 | 8.3 | |
| Organic revenue growth1 | (1.5) | 10.8 | 5.9 | 5.0 | |
| Price | 2.6 | 12.7 | 2.9 | 6.6 | |
| Volume/Mix | (4.1) | (1.9) | 3.0 | (1.6) |
1 Includes c.1% of price growth due to hyperinflation for the Group.
| Product Categories | ||||||
|---|---|---|---|---|---|---|
| Three months ended 30 September 2024 vs 2023 (%) |
Oral Health |
VMS | Pain Relief |
Respiratory Health |
Digestive Health and Other |
Total |
| Revenue growth | 2.5 | (0.7) | (1.3) | 3.9 | (8.4) | (0.6) |
| Organic adjustments | — | — | — | — | 9.0 | 1.8 |
| Effect of exchange rates | 5.7 | 4.4 | 4.4 | 5.2 | 5.3 | 4.9 |
| Organic revenue growth1 | 8.2 | 3.7 | 3.1 | 9.1 | 5.9 | 6.1 |
1 Excludes c.2% of price growth due to hyperinflation for the Group.
| Product Categories | ||||||
|---|---|---|---|---|---|---|
| Three months ended 30 | Digestive | |||||
| September | Oral | Pain | Respiratory | Health and | ||
| 2023 vs 2022 (%) | Health | VMS | Relief | Health | Other | Total |
| Revenue growth | 0.4 | (6.2) | (1.9) | (3.9) | (7.1) | (3.3) |
| Organic adjustments | — | — | 0.2 | — | (0.2) | — |
| Effect of exchange rates | 9.0 | 7.6 | 7.9 | 8.1 | 8.2 | 8.3 |
| Organic revenue growth 1 | 9.4 | 1.4 | 6.2 | 4.2 | 0.9 | 5.0 |
1 Includes c.1% of price growth due to hyperinflation for the Group.
| Three months ended 30 September | |||
|---|---|---|---|
| 2024 vs 2023 (%) | 2023 vs 2022 (%) | ||
| Operating profit growth | 20.7 | 2.6 | |
| Adjusted operating profit growth | (7.2) | (5.0) | |
| Effect of exchange rates | 10.0 | 13.9 | |
| Adjusted operating profit growth (CER) | 2.8 | 8.9 | |
| Organic adjustments | 4.6 | (0.1) | |
| Organic operating profit growth | 7.4 | 8.8 |
The following tables set out a reconciliation between IFRS and Adjusted Results for the nine-month periods ended 30 September 2024 and 30 September 2023:
| £m | IFRS Results |
Net amortisation and impairment of intangible assets1 |
Restructuring costs2 |
Transaction- related costs |
Separation and admission costs |
Disposals and others3 |
Adjusted Results |
|---|---|---|---|---|---|---|---|
| 2024 | |||||||
| Revenue | 8,474 | — | — | — | — | — | 8,474 |
| Operating profit | 1,856 | 3 | 179 | 4 | 23 | (133) | 1,932 |
| Operating profit margin % |
21.9% | 22.8% | |||||
| 2023 | |||||||
| Revenue | 8,536 | — | — | — | — | — | 8,536 |
| Operating profit | 1,725 | 30 | 90 | 8 | 94 | 13 | 1,960 |
| Operating profit margin % |
20.2% | 23.0% |
Net amortisation and impairment of intangible assets: includes impairment reversal of intangible assets of £(16m) (2023: nil), and amortisation of intangible assets excluding computer software £18m (2023: £30m). Impairment reversal of intangible assets relates to the divestment of ChapStick on 31 May 2024.
Restructuring costs: In 2024 it includes £64m of non-cash costs.
Disposals and others: In 2024 it includes £(121)m gain from disposal of Nicotine Replacement Therapy business outside the US.
The following tables reconcile reported revenue growth and reported operating profit growth to organic revenue growth and organic operating profit growth, respectively, for the periods presented.
| Geographical Segments | |||||
|---|---|---|---|---|---|
| Nine months ended 30 September | North | EMEA and | |||
| 2024 vs 2023 (%) | America | LatAm | APAC | Total | |
| Revenue growth | (3.6) | 2.2 | (1.3) | (0.7) | |
| Organic adjustments | 1.3 | 1.3 | 0.9 | 1.2 | |
| Effect of exchange rates | 3.0 | 3.8 | 5.4 | 3.9 | |
| Organic revenue growth1 | 0.7 | 7.3 | 5.0 | 4.4 | |
| Price | 2.9 | 6.1 | 1.9 | 4.0 | |
| Volume/Mix | (2.2) | 1.2 | 3.1 | 0.4 |
1 Excludes c.2% of price growth due to hyperinflation for the Group.
| Nine months ended 30 September | Geographical Segments | ||||
|---|---|---|---|---|---|
| North | EMEA and | ||||
| 2023 vs 2022 (%) | America | LatAm | APAC | Total | |
| Revenue growth | 3.0 | 8.5 | 4.9 | 5.6 | |
| Organic adjustments | — | 0.2 | (0.1) | — | |
| Effect of exchange rates | (0.6) | 4.7 | 4.8 | 2.9 | |
| Organic revenue growth1 | 2.4 | 13.4 | 9.6 | 8.5 | |
| Price | 3.9 | 13.0 | 2.5 | 7.2 | |
| Volume/Mix | (1.5) | 0.4 | 7.1 | 1.3 |
1Includes c.1% of price growth due to hyperinflation for the Group.
| Nine months ended 30 September 2024 vs 2023 (%) |
Product Categories | |||||
|---|---|---|---|---|---|---|
| Oral Health |
VMS | Pain Relief |
Respiratory Health |
Digestive Health and Other |
Total | |
| Revenue growth | 4.8 | 3.1 | (5.4) | (2.7) | (4.3) | (0.7) |
| Organic adjustments | — | — | — | — | 6.1 | 1.2 |
| Effect of exchange rates | 4.5 | 4.2 | 3.3 | 4.3 | 3.5 | 3.9 |
| Organic revenue growth1 | 9.3 | 7.3 | (2.1) | 1.6 | 5.3 | 4.4 |
1Excludes c.2% of price growth due to hyperinflation for the Group
| Nine months ended 30 September 2023 vs 2022 (%) |
Oral Health |
VMS | Pain Relief |
Respiratory Health |
Digestive Health and Other |
Total |
|---|---|---|---|---|---|---|
| Revenue growth | 6.9 | (2.2) | 7.6 | 12.1 | 2.9 | 5.6 |
| Organic adjustments | — | (0.1) | 0.2 | — | (0.1) | — |
| Effect of exchange rates | 3.4 | 2.5 | 2.8 | 2.7 | 2.5 | 2.9 |
| Organic revenue growth 1 | 10.3 | 0.2 | 10.6 | 14.8 | 5.3 | 8.5 |
Product Categories
1 Includes c.1% of price growth due to hyperinflation for the Group.
| Nine months ended 30 September | |||
|---|---|---|---|
| 2024 vs 2023 (%) | 2023 vs 2022 (%) | ||
| Operating profit growth | 7.6 | 17.4 | |
| Adjusted operating profit growth | (1.4) | 2.3 | |
| Effect of exchange rates | 7.8 | 6.6 | |
| Adjusted operating profit growth (CER) | 6.4 | 8.9 | |
| Organic adjustments | 3.3 | 0.1 | |
| Organic operating profit growth | 9.7 | 9.0 |
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