Haleon PLC on Thursday said revenue fell in the third quarter but profit increased slightly on lower costs.
The Surrey, England-based consumer healthcare company said pretax profit in the third quarter of 2023 was £496 million, up 0.2% from £495 million the prior year. Operating profit increased 2.6% to £584 million.
Haleon, which owns the Sensodyne toothpaste, Panadol and Advil painkiller and Centrum vitamin brands, said however that revenue decreased 3.3% to £2.80 billion from £2.89 billion.
Cost of sales increased just 0.8% to £1.08 billion, while research & development expenses decreased 9.3 to £75 million. Selling, general & administration expenses meanwhile fell 12% to £1.06 billion from £1.20 billion.
For the first nine months of 2023, however, revenue rose 5.6% year-on-year to £8.54 billion from £8.08 billion. Operating profit increased 17% to £1.73 billion, while the operating profit margin increased by 200 basis points to 20.2%.
‘I am pleased with our Q3 results, which demonstrate continued strong momentum across the business,’ said Chief Executive Officer Brian McNamara. ‘Despite challenging markets, we have delivered another quarter of strong organic growth, reflecting the strength of our category positions and the ongoing ability of our brands to grow or maintain share.
‘Our Power Brands grew ahead of the overall portfolio in the period, with all three Oral Health brands, Panadol and Centrum the standout performers. In Oral Health, innovation underpinned brand success alongside excellent execution in market.’
Haleon said its guidance for 2023 remains unchanged, with predicted organic revenue growth between 7% and 8% and adjusted operating profit increasing 9% to 11% in constant currency.
McNamara explained: ‘Whilst we are mindful of what remains an uncertain economic and geopolitical environment, we remain confident in our medium term guidance, and remain committed to drive long term sustainable growth.’
Shares in Haleon were down 2.1% at 324.14 pence on Thursday morning in London.
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