Haleon plc (HLN): Financial results for H1 2026
Haleon plc (HLN) furnished an SEC Form 6-K — earnings release. Half year results announcement Six months ended 30 June 2026 30 July 2026 2026 Half year results Six months ended 30 June 2026 (unaudited) Reported Adjusted results 2 Six months ended 30 June 2026 vs 2025 2026 vs 2025 Revenue £5,602m 2.2% Organic revenue growth
How this was made
The 30-second read
Why it matters
The earnings beat on adjusted EPS and a higher dividend suggest short‑term buying interest, while guidance of 3‑5% organic revenue growth sets expectations for FY 2026.
Market read
First‑report earnings release for a large‑cap consumer health firm with dividend increase and solid adjusted EPS, offering actionable insight for traders.
What to watch
Currency headwinds and restructuring costs could pressure margins despite adjusted EPS growth.
H1 2026 reported revenue increased 2.2% to £5,602m, while adjusted operating profit increased 9.7% to £1,364m and FY 2026 outlook was unchanged.
Organic revenue growth of 2.6%, adjusted operating profit growth of 8.2% at constant currency, 120bps adjusted operating profit margin expansion at constant currency and free cash flow growth offset weak Respiratory Health demand and a 2.6% decline in reported operating profit caused by restructuring costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | £5,602m | – | 2.2% |
| Organic revenue growthnon-GAAP | 2.6% | – | 2.6% |
| Price growthnon-GAAP | 2.1% | – | – |
| Volume/mix growthnon-GAAP | 0.5% | – | – |
| Gross profitother | £3,691m | – | 4.7% |
| Gross marginother | 65.9% | – | 160bps |
| Adjusted gross profitnon-GAAP | £3,728m | – | 4.7% |
| Adjusted gross profit marginnon-GAAP | 66.5% | – | 140bps |
| Selling, general and administrationother | (£2,371m) | – | – |
| Research and developmentother | (£151m) | – | – |
| Adjusted selling, general and administrationnon-GAAP | (£2,217m) | – | – |
| Adjusted research and developmentnon-GAAP | (£147m) | – | declined 3.3% at AER and 2.6% at constant currency |
| Operating profitother | £1,172m | – | (2.6)% |
| Operating profit marginother | 20.9% | – | (110)bps |
| Adjusted operating profitnon-GAAP | £1,364m | – | 9.7% |
| Adjusted operating profit growth at constant currencynon-GAAP | 8.2% | – | 8.2% |
| Adjusted operating profit marginnon-GAAP | 24.3% | – | 160bps |
| Profit after tax for the periodother | £770m | – | – |
| Profit attributable to shareholders of the Groupother | £762m | – | (5.5)% |
| Adjusted profit after tax attributable to shareholders of the Groupnon-GAAP | £915m | – | 9.6% |
| Basic earnings per shareother | 8.6p | – | – |
| Diluted earnings per shareother | 8.5p | – | (4.5)% |
| Adjusted diluted earnings per sharenon-GAAP | 10.3p | – | 12.0% |
| Net finance costsother | £119m | – | – |
| Effective tax rate on IFRS resultsother | 27.1% | – | – |
| Adjusted effective tax ratenon-GAAP | 25.9% | – | – |
| Net cash inflow from operating activitiesother | £1,044m | – | £17m |
| Free cash flownon-GAAP | £769m | – | £35m |
| Net capital expenditureother | £140m | – | increased by £11m |
| Cash and cash equivalentsother | £826m | – | – |
| Total borrowingsother | £8,252m | – | – |
| Net debtnon-GAAP | £7,513 | – | – |
| Net debt/Adjusted EBITDAnon-GAAP | 2.5x | – | – |
| Total borrowings/Profit after taxother | 10.7x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Oral HealthOrganic revenue growth was 7.3%, supported by market share gains, innovations, geographic expansion and strong in-market execution. | £1,838m | – | 6.4% |
| Vitamins, Minerals and SupplementsCentrum growth in North America and APAC and Caltrate growth were partly offset by declines in local brands including Be-Total, Scotts and Vitasprint. | £849m | – | 1.9% |
| Pain ReliefOrganic growth was driven by mid-single-digit growth in Voltaren and Panadol, supported by innovation, in-store execution and retail ordering patterns. | £1,323m | – | 2.9% |
| Respiratory HealthOrganic revenue growth of (4.7)% reflected a weak cold and flu season, particularly in North America, Central & Eastern Europe and China. | £850m | – | (4.8)% |
| Digestive HealthOrganic revenue growth was 2.4%, led by Tums and Benefiber, partly offset by a double-digit decline in Nexium. | £490m | – | (0.2)% |
| Therapeutic Skin Health and OtherOrganic revenue growth was 1.6%; strong Zovirax performance was offset by a decline in Fenistil. | £252m | – | 1.2% |
| North AmericaOrganic revenue growth was 2.0%, with 2.5% price and (0.5)% volume/mix. The reported decline included a (3.1)% foreign exchange impact. | £1,830m | – | (1.1)% |
| EuropeOrganic revenue growth was 0.6%, with 2.2% price and (1.6)% volume/mix, against a weak consumer backdrop. | £1,631m | – | 4.8% |
| APACOrganic revenue growth was 3.3%, with (0.6)% price and 3.9% volume/mix. India delivered double digit growth and China improved in the second quarter. | £1,182m | – | 2.9% |
| InternationalOrganic revenue growth was 6.3%, with 4.3% price and 2.0% volume/mix, supported by India Subcontinent and Latin America. | £959m | – | 3.8% |
FY 2026 outlook
- RevenueOrganic revenue growth of 3%-5%
- Tax rateAdjusted effective tax rate c.24.5%
- NoteHigh-single digit adjusted operating profit growth at constant currency
- NoteNet interest c.£255m
- NoteThe Group now expects a slightly positive foreign exchange translation impact on net revenue and adjusted operating profit respectively
- NoteCapital expenditure is expected to increase to c. 4% of revenue over the next three to five years
Capital returns
- Completed £457m out of £500m allocated to share buybacks for 2026
- Share capital purchased for cancellation was £457m
- Dividends paid to shareholders were £436m
- H1 2026 interim dividend of 2.4 pence per ordinary share, up 9% on the interim dividend in 2025
- The interim dividend is expected to be paid on 17 September 2026 to holders on the register as of 14 August 2026
- Haleon expects to grow its ordinary dividend at least in line with adjusted earnings, subject to market conditions and Board approval
What drove it
- Organic revenue growth of 2.6% comprised 2.1% price and 0.5% volume/mix.
- 73% of the business gained or maintained market share.
- Adjusted gross profit margin expansion was driven by pricing to offset inflation, net revenue management and supply chain productivity.
- Adjusted operating profit growth was supported by operating leverage, cost efficiencies and productivity execution.
- Investment in A&P increased 3.2% at constant currency and represented 20.9% of revenue.
- Oral Health delivered 7.3% organic revenue growth, driven by Sensodyne, parodontax, innovation and geographic expansion.
- India delivered double digit growth, while China improved to high-single digit growth in the second quarter.
- Free cash flow benefited from adjusted operating profit growth, slightly lower cash interest and proceeds from the sale of the Maidenhead, UK site.
Concerns
- Respiratory Health organic revenue growth was (4.7)% due to a weak cold and flu season, particularly in North America, Central & Eastern Europe and China.
- North America volume/mix was (0.5)% in H1 2026 despite 2.0% organic revenue growth.
- Europe organic revenue growth was 0.6%, with (1.6)% volume/mix amid a weak consumer backdrop.
- Reported operating profit declined (2.6)% and operating profit margin declined (110)bps, impacted by restructuring costs of £169m.
- The effective tax rate on IFRS results increased to 27.1% from 24.4%, while the adjusted effective tax rate increased to 25.9% from 24.4%.
- Middle East & Africa performance was affected by weakness in UAE from geopolitical conflicts in the region.
What to watch
- Whether North America growth improves in the second half through shelf resets, distribution gains, media effectiveness, innovation rollout and a reduced drag from Respiratory Health.
- The progression of Respiratory Health demand following the weak cold and flu season.
- Delivery of annualised gross cost savings of c. £175m-200m from the operating model implementation over the next two years.
- The higher proportion of operating model implementation costs weighted towards 2026.
- Progress toward £800m in gross supply chain savings by 2030 and the targeted 50 to 80bps per annum of adjusted gross profit margin improvement at constant currency.
- The $2bn debt maturity due in March 2027.
Balance sheet and cash flow
- Net cash inflow from operating activities was £1,044m, compared with £1,027m
- Free cash flow was £769m, compared with £734m
- Cash and cash equivalents were £826m at 30 June 2026
- Cash and cash equivalents net of bank overdrafts were £805m at 30 June 2026
- Total borrowings were £8,252m at 30 June 2026
- Net debt stood at £7.5bn at the end of June 2026, representing 2.5x net debt/Adjusted EBITDA
- The Group repaid the €850m Fixed Rate Senior Note on its maturity on 29 March 2026
- The next major maturity is $2bn due in March 2027
- The Group had an undrawn credit facility of £1,750m with maturity date of August 2029
Analysis
Haleon delivered H1 2026 reported revenue of £5,602m, up 2.2%, with 2.6% organic revenue growth made up of 2.1% price and 0.5% volume/mix. Demand was uneven across categories. Oral Health was the principal growth contributor, with 7.3% organic growth, while Pain Relief and VMS also grew organically. Respiratory Health was the clear shortfall, with organic revenue growth of (4.7)% amid a weak cold and flu season. Digestive Health achieved 2.4% organic growth but reported revenue declined (0.2)% due to foreign exchange.
Mix by geography also showed differing conditions. North America delivered 2.0% organic growth, but volume/mix was (0.5)% in the half. Europe recorded 0.6% organic growth with (1.6)% volume/mix, reflecting weak consumer conditions. APAC grew 3.3% organically, supported by India and an improved second quarter in China, while International grew 6.3% organically through India Subcontinent and Latin America. The company stated that 73% of the business gained or maintained market share, supported by increased A&P investment, innovation and execution.
Profit performance was stronger on an adjusted basis than in reported IFRS results. Gross profit increased 4.7% to £3,691m and gross margin increased 160bps to 65.9%. Adjusted operating profit rose 9.7% to £1,364m at actual exchange rates and 8.2% at constant currency, while adjusted operating profit margin increased 160bps to 24.3% at actual exchange rates. Pricing, net revenue management, supply chain productivity and cost efficiencies supported margin expansion. Reported operating profit declined 2.6% to £1,172m because restructuring costs increased to £169m, primarily related to the operating model transformation.
Cash generation remained strong. Net cash inflow from operating activities increased to £1,044m and free cash flow increased to £769m. Haleon used cash for £457m of share repurchases and £436m of dividends paid to shareholders. Total borrowings were £8,252m and net debt was £7,513, with leverage at 2.5x net debt/Adjusted EBITDA. The company repaid the €850m debt maturity in March 2026 and identified a $2bn major maturity due in March 2027.
FY 2026 guidance was unchanged. Haleon continues to expect organic revenue growth of 3%-5%, high-single digit adjusted operating profit growth at constant currency, net interest of c.£255m and an adjusted effective tax rate of c.24.5%. The unchanged outlook places focus on second-half growth improvement in North America, the expected reduced drag from Respiratory Health, and execution of restructuring and productivity initiatives while managing the associated costs weighted toward 2026.
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual H1 2026 performance with prior guidance is unavailable.
- Prior-quarter figures were not reported for the consolidated key financial metrics.
- FY 2026 gross margin guidance and operating expense guidance were not reported.
- Adjusted EBITDA amount was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Haleon (HLN) is a consumer health company listed on NYSE. The H1 2026 results are its first half‑year earnings release for fiscal 2026.
Ticker impact
Haleon posted H1 2026 revenue of £5.6bn, adjusted EPS 10.3p and raised its interim dividend to 2.4p.
Potential modest upside if market prices in the dividend increase and higher adjusted EPS.
Large‑cap earnings with better‑than‑expected adjusted EPS and a dividend hike typically drive short‑term buying pressure.
Market effects
Consumer health sector may see modest uplift as Haleon signals continued organic growth.
UK‑listed consumer health stocks could benefit from Haleon's positive guidance.
Limited to consumer health and dividend‑focused investors worldwide.
Counterpoint
If the market had already priced in the dividend increase, the stock may face a pull‑back on earnings beat.
Key entities
- CompanyHaleon plc
Consumer health company reporting H1 2026 results.
- ExecutiveBrian McNamara
CEO who presented the results.
- ExecutiveDawn Allen
CFO who co‑presented the results.
