Haleon PLC's (LSE:HLN, NYSE:HLN) first-quarter sales at the end of next month come with analysts expecting a subdued start to the year due to a weak cough and cold season.
Both Citi and UBS forecast organic sales growth of around 2.2% for the quarter, below consensus, due to a lower incidence of seasonal illness in Europe and North America weighing on respiratory product demand.
UBS expects this category to reduce group growth by around 170 basis points, with additional pressure from slower trends in Latin America.
Pricing is expected to remain supportive, though volumes may decline slightly. UBS forecasts reported revenue of £2.86 billion, broadly flat year-on-year due to a foreign exchange headwind.
Looking beyond the first quarter, analysts anticipate an improvement in performance. Citi points to a US 'shelf reset' in April and easing seasonal comparisons as key drivers, with growth expected to recover towards 4.5% in the second half. Oral health is seen as a core contributor, supported by brands such as Sensodyne.
Margins are also forecast to improve, with UBS modelling a near 90 basis point increase in adjusted EBIT margin for the full year, supported by cost savings and pricing.
Analysts also note Haleon’s relatively limited exposure to raw material cost inflation and no material disruption so far from geopolitical tensions in the Middle East.