Haleon PLC's (LSE:HLN, NYSE:HLN) third-quarter numbers were in line with expectations and the outlook was maintained, but analysts at Barclays flagged that the toothpaste, painkiller and vitamin maker is not yet out of the woods.
Organic sales growth (OSG) of 3.4% for the quarter was in line with the average analyst forecast, helped by better volumes, though the Oral Health arm saw growth short of the City consensus.
North America OSG of 0.4% was "a relief", the Barclays team said, with the market expecting negative sales volumes of -1.0% to -1.5%.
However, the US sell-out was boosted by net restocking, including destocking in US pharma, which the company confirmed should be done by year end.
"The other point to highlight is the US pricing miss and here Haleon are seeing a very competitive market, particularly in VMS (Vitamins, Minerals & Supplements)."
Based on full-year guidance being maintained, implied US growth for the fourth quarter is a decline of 1.2%.
Barclays said this "leaves a question mark" about the potential for a US step-up in 2026, with pricing "under pressure" in the VMS stateside.
Haleon shares have rallied from lows "on the basis that the US would be a bit better this quarter" and this is what has played out, the analysts said.
But, overall, with the cough and cold season having started slowly in both the US and Europe, "we don't think Haleon is out of the woods and we need to see how the US Q4 exits," they added.
"For us, question marks still remain."