Haleon’s Share Price (LON:HLN) Back Into Range – Correction Territory

Haleon's share price (LON: HLN) has pulled back 10% from recent highs just over 1 month ago, sitting firmly in a trading range that has held through much of the past 12 months, and in correction territory.

The consumer healthcare firm, behind household names like Sensodyne and Advil, finds it's shares changing hands between the 370p and 400p levels, with the recent breakout to new highs of 419.50p firmly retracing. This reflects a tug-of-war between underlying financial strength and external pressures.

Looking at the 5 year chart below, the range that has held for much of the past year becomes clear.

Operationally, the company's 2024 revenue of £11.23 billion, although slightly down by 0.61% year-over-year, was overshadowed by a remarkable 37.5% surge in net income to £1.44 billion. This translates to an Earnings Per Share (EPS) of 0.16 and a P/E ratio of 24.10 (with a forward P/E of 19.87), suggesting that while the stock isn't cheap, analysts expect future earnings to improve. Furthermore, the dividend yield of 1.75% offers a modest income stream for investors, with the last ex-dividend date being April 24, 2025.

In March 2025, Pfizer's complete divestiture of its 7.3% stake in Haleon for $3.24 billion, involving the sale of 662 million shares at 385 pence each, and Haleon repurchasing $220 million worth of its own shares, marked a significant shift in the company's shareholder structure.

BlackRock Investment Management (UK) Ltd subsequently emerged as Haleon's largest shareholder, holding over 5%. This marked the end of Pfizer's involvement with Haleon, which was formed by the merger of GSK and Pfizer's consumer healthcare businesses and later spun off from GSK in 2022. This event, while providing liquidity in the market, initially created some uncertainty among investors.

Haleon's first-quarter 2025 financial performance, revealed in April, showed a 3.5% organic revenue growth, exceeding analysts' anticipated 3.2%. This growth was largely fueled by strong demand for oral health products like Sensodyne and Parodontax, offsetting weaker performance in the respiratory and digestive health segments. Despite these positive results, Haleon maintained its full-year 2025 guidance, citing a challenging and uncertain macroeconomic environment.

Further solidifying its strategic positioning, Haleon acquired the remaining 12% stake in its Chinese joint venture, Tianjin TSKF Pharmaceutical Co., for 1.62 billion yuan ($221.4 million) in April. This acquisition grants Haleon full control of TSKF, a manufacturer and distributor of over-the-counter products under Haleon's brands in China, including Fenbid burn ointment and Bactroban topical antibiotic.

The company also allocated £500 million for share buybacks in the current year, aiming to boost shareholder value.

Looking ahead, Haleon's next earnings release at the end of this month should shed some light on the next leg.