Investing.com -- Haleon (LON:HLN) shares fell sharply on Thursday, hitting a three-week low, after the consumer healthcare group cut its full-year organic revenue growth outlook following weaker-than-expected third-quarter trading, despite announcing a further £500 million share buyback.
Shares fell around 12.5%, underperforming the broader FTSE 100, which rose 0.5%, as investors focused on weaker growth prospects and soft demand for cold and flu products.
Haleon now expects organic revenue growth of around 2.5% in 2026, while maintaining its forecast for high-single-digit adjusted operating profit growth at constant exchange rates. The group also expects net interest costs of £255 million.
Chief Executive Brian McNamara said third-quarter growth was below expectations as weaker cough, cold and flu consumption weighed on performance. He highlighted continued strength in oral health and progress in the company's North American turnaround, adding that the priority was to drive stronger volume growth and restore consistent delivery of its medium-term growth guidance.
Oral Health was the strongest category, with organic revenue growth of 8.8%, supported by double-digit growth at Sensodyne and innovation across parodontax. International revenue grew 6.9%, helped by high-teens growth in India, while Asia-Pacific advanced 3.9%.
However, Respiratory Health revenue declined 2% as weaker seasonal demand reduced orders in North America and Europe. Vitamins, Minerals and Supplements revenue slipped 0.5%, partly reflecting disruption to Centrum's over-the-counter products in China following a raw-material classification change that halted imports of those products until further notice.
Haleon also expects to accelerate its go-to-market changes in Brazil during the fourth quarter, a move expected to reduce group revenue by £15 million to £20 million.
The company allocated a further £500 million to share repurchases, which it expects to complete by its full-year results in February 2027.
Original Article
Haleon shares hit three-week low after growth downgrade, £500 million buyback
