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Consumer health group Haleon has posted a double-digit revenue and profits jump in its first annual results as a listed company.

The company, spun off by GSK in July last year, saw full year revenues growth of 13.8% to £10.9bn.

Haleon said the strength of its portfolio resulted in 9% organic growth during the year, with the growth of ‘power brands’ ahead of this at 10.1%.

Organic growth of 9% consisted of 4.3% price growth and a 4.7% gain from volume/mix.

Across the portfolio and in the full year, two thirds of Haleon’s business gained or maintained market share.

In Oral Health, revenues increased 8.6% and organic revenue grew 5.6, with all three power brands Sensodyne, Parodontax and Polident/Poligrip outperforming.

In Vitamins, Minerals & Supplements, Haleon continued to see share gain with 11.6% revenue growth and 5% organic growth.

Pain relief saw revenue increase 14.0% and organic revenue growth was 8.9%, with Panadol a standout performer as it gained share and saw organic growth in the high-teens per cent.

In Respiratory Health, revenue increased 39.5% and organic revenue growth of 32.6% reflected the strong cold and flu season with sales significantly above 2019 levels in North America and Europe in the fourth quarter.

Digestive Health and Other saw 7.4% revenue growth with organic revenue growth of 2.9%.

Group operating profit increased by 11.4% to £1.8bn though operating profit margin decreased by 40bps to 16.8% from 17.2%.

Adjusted operating profit increased by 13.8% to £2.5bn with margin flat.

Adjusted operating profit growth was driven by strong revenue growth including a healthy balance of volume and price/mix, combined with Pfizer synergies partly offset by higher commodity related and raw material costs, freight cost inflation, incremental costs of operating as a standalone company and increased investment in R&D.

In 2023 the group expects organic revenues growth of between 4%-6%, while full year adjusted operating profit margin is expected to be broadly flat after adverse transactional FX of around 40bps.

CEO Brian McNamara commented: “2022 was an extraordinary year for Haleon, having successfully demerged from GSK to become the first listed company 100% focused on consumer health. All the result of significant work and commitment from our colleagues around the world, and I would like to thank them for their tireless efforts and achievements.

“In our first FY results, we delivered a strong performance whilst navigating a highly volatile environment. This performance reflected the quality of our portfolio of category leading brands, successful innovation, and excellent execution in market.

“Our agility across the business resulted in adjusted operating profit growth of 5.9% constant currency despite significant inflation, standalone costs and adverse transactional FX. Strong free cash flow generation of £1.6bn enabled us to de-lever and provides us with increased confidence in reducing debt faster than originally expected.

“As a standalone company we also further developed our Responsible Business agenda, particularly on health inclusivity and made progress delivering on our environmental ambitions.”

Haleon shares are down 2.6% on the news to 318.2p.

Morning update

On the markets this morning, the FTSE 100 is broadly flat at 7,912.3pts.

Risers include Glanbia, up 1.8% to €12.54, Science in Sport, up 1.6% to 15.8p and Hilton Food Group, up 1% to 725p.

Fallers, along with Haleon, include Hotel Chocolat, down 1.2% to 202p, Nichols, down 1.1% to 1,028.3p and B&M European Value Retail, down 0.8% to 486.9p.

Yesterday in the City

The FTSE 100 bounced up 0.5% to 7,914.9pts yesterday.

Reckitt Benckiser was up 1.5% to 5,850p after price increases boosted annual revenues and profits last year.

Nichols jumped 4.2% to 1,040p as it increased revenues 14.3% in 2022 as Vimto continued to outperform rivals.

Just Eat Takeaway.com fell 2.1% to 1,771.4p despite forecasting further improvements in profitability in 2023 after posting adjusted EBITDA of €19m last year, compared with a €350m loss in 2021.

Elsewhere, fallers included Ocado, down another 3.5% to 529.6p, Coca-Cola Europacific Partners, down 2.9% to 50.8p, Deliveroo, down 2.1% to 80.9p and Bakkavor, down 1.9% to 111.6p.

Risers included Glanbia, up 5.1% to €12.32, Nichols. Up 4.2% to 1,040p, THG, up 2.9% to 59.6p, DS Smith, up 1.5% to 342.5p, Reckitt Benckiser, up 1.5% to 5,850p and Haleon, up 1.4% to 326.6p.

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