Haleon Pretax Profit Rises Despite Revenue Drop
By Najat Kantouar
Haleon reported a higher pretax profit for the first quarter despite lower revenue against tough comparatives in the prior year particularly in respiratory health and pain relief divisions, but backed its full-year guidance.
The consumer-healthcare business--which was spun out of GSK and is partly owned by Pfizer-- said Wednesday that for the three months ended March 31 pretax profit was 590 million pounds ($737 million) compared with GBP542 million for the same period a year earlier.
Revenue fell 2% to GBP2.91 billion from GBP2.99 billion, in line with market consensus of GBP2.91 billion based on two estimates taken from FactSet.
Within this, North America organic revenue fell 3.3% to GBP996 million due to reduced volume mix in Respiratory Health and Pain Relief. In Europe, Middle East & Africa and Latin America organic revenue rose 8.6%, while in Asia-Pacific it grew 3.3%.
Adjusted operating profit margin--the company's preferred metric that strips out exceptional and other one-off items--rose 2.3% at constant currency to GBP707 million.
The company maintained its 2024 target of organic revenue growth range of 4% to 6%. It also expects organic operating profit growth to be ahead of organic revenue growth. These are the same targets for the medium term.
Haleon still expects to allocate GBP500 million to buy back shares in 2024.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
May 01, 2024 02:45 ET (06:45 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
5 Stocks to Buy While They’re Trading at Big Discounts
-
Markets Brief: Tech Stocks Lead Ahead of Nvidia Earnings
-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
Macy’s Earnings: Plan Taking Shape Despite Tough Environment
-
JPMorgan Investor Day: CEO Dimon Pushes Against More Stock Buybacks at Current Prices
-
Should You Buy and Hold an Artificial Intelligence Portfolio?
-
3 Cheap and Dependable Dividend-Growth Stocks to Buy
-
The Best Bank Stocks to Buy
-
After Earnings, Is Roblox Stock a Buy, Sell, or Fairly Valued?
-
After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?
-
8 Stock Picks in the Apparel Industry