Haleon PLC (LSE:HLN, NYSE:HLN) upped its forecast for profit growth this year after a strong performance from its power brands Sensodyne, parodontax and Centrum in the first six months.
The consumer brands giant now expects organic profits to rise by a ‘high single-digit percentage’, compared to previous guidance of ‘ahead of’ the revenue forecast of 4-6%.
Reported revenue in the half year to end June 2024 dropped slightly to £5.7 billion, due to foreign exchange movements and disposal but underlying growth picked up in the second quarter helped by the power brands, which saw a 5.6% rise.
Pre-tax profits rose by 4% to £996 million, though organically the improvement was 11% and helped by lower input costs and cost savings.
Free cash flow also soared £831 million with net debt of £8.4 billion at the end of the half year.
Brian McNamara, chief executive Officer, said it has been a good half with solid organic revenue growth and strong organic operating profit growth.
Changes to the volume mix boosted revenues, he said, while Oral Health and Vitamins, Minerals and Supplements were strong.
The interim dividend is 2p.