The HALEON PLC (LON: HLN) share price fell 3.92% after releasing the financial results for the three months ended 31 March 2023. The company generated revenues worth £3.0 billion during the first quarter, driven by a 9.9% volume surge and a 7.1% growth from higher prices.
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The consumer health giant noted that its respiratory business contributed the most to its revenue mix due to the robust cold and flu season. Other business segments that contributed to its growth include the bar vitamins and mineral supplements, which had a tough comparative given the impact of the Omicron variant in Q1 2022.
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Haleon’s reported operating profit surged 34.5% to £627 million, reflecting the significant drop in separation and admission costs. As a result, the company’s adjusted operating profits rose 9.5% to £691m, representing a 3.3% increase in constant currency terms.
The higher adjusted operating profits were driven by positive operational leverage, partly offset by higher standalone costs and adverse transactional foreign exchange. Therefore, the firm’s operating profit for Q1 2023 fell 90 bps to 23.1%.
Haleon also reported strong performance across all geographies after recording double-digit growth in the LatAm, EMEA and APAC regions. In addition, the firm recorded mid-single-digit growth in North America.
The company also revealed that all its product categories reported positive growth except for VMS, which fell primarily due to the solid comparatives for Emergen-C in the US.
Brian McNamara, Haleon’s Chief Executive Officer, said: “The new year has started well, and I am particularly pleased that we delivered a healthy balance of positive volume mix and price in the first quarter, demonstrating the strength of the brand portfolio combined with exceptional execution across our markets.”
Adding:
“Our strategy is delivering strong growth, and our Q1 performance reinforces my confidence in our ability to deliver. Strong innovation and a continued focus on cost discipline underpin this confidence. As we shared at the AGM, for FY23, we expect to deliver towards the upper end of the 4-6% organic revenue growth guidance range.”
Haleon shares fell on the negative investor sentiment given the company’s positive earnings.
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Haleon share price.
The Haleon share price fell 3.92% to trade at 338.1p, from Tuesday’s closing price of 351.9p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.