Haleon launches £500 million share buyback programme

Haleon's stock dropped 11.8% after lowering its 2026 revenue growth outlook to 2.5%, citing weak respiratory health sales and market challenges. Analysts cut price targets, and share buybacks failed to offset the decline. The FTSE 100's slight gain did not mitigate the company-specific drop.

The FTSE 100 rose 0.5% on Thursday, led by Shell, which gained 3% and reached a record high after announcing a $5 billion share buyback. Shell reported strong refining profitability and higher earnings. BP, AstraZeneca, and Unilever also advanced, while Lloyds Banking Group fell 3% and Haleon dropped 11% after cutting its revenue outlook.

Haleon is investing £175m in a new oral health manufacturing facility in Madhya Pradesh, India, aiming to expand production capacity and reach more consumers, including rural populations with limited access to dental care. The company seeks to leverage local talent and infrastructure while addressing specific healthcare challenges and distribution hurdles in the region.

Haleon, a consumer health company, is investing £175m (US$235m) to build its first manufacturing site in Madhya Pradesh, India, aiming to reach one billion more consumers by 2030. The plant, set to open in January 2028, will create 500 permanent jobs and boost India's local economy. Haleon is also focusing on simplifying its supply chain and implementing automation, having installed 2,500 robotic equipment in 20 months.

Jefferies raised its price target for Haleon to 410p from 400p, citing a 70 basis point margin beat in H1. Haleon reported 3.1% organic sales growth in Q2, with Oral Health and Pain Relief segments performing well. Shares rose 0.28% to 364.10p. Jefferies expects 5%+ growth in H2 to meet guidance.

Haleon's H1 2026 operating margin expanded 160 bps to 24.3%, driven by cost savings, but organic sales growth was 2.6%. Jefferies notes strong execution but questions growth investment. Q2 sales grew 3.1%, with varied performance across segments. Jefferies raised its price target to 410 pence, citing 13% upside.