Haleon PLC (LSE:HLN, NYSE:HLN) shares fell 2.9% to 368.7p after the consumer healthcare group reported improving second-quarter sales but left its full-year guidance unchanged.
Organic revenue increased 3.1% in the second quarter, split between 1.7% from pricing and 1.4% from volumes and product mix. North American growth accelerated to 3.1% from 1% in the first quarter, while emerging markets grew 6.3%.
Oral health remained the strongest division, with sales up 6.2% as Sensodyne and Parodontax continued to perform well.
First-half adjusted operating profit increased 8.2% at constant currencies, with the margin rising to 24.3%. Adjusted earnings per share climbed 12% to 10.3p, while free cash flow increased by £35 million to £769 million.
Haleon maintained its forecast for organic revenue growth of 3%-5% and high-single-digit adjusted operating profit growth. The interim dividend was raised 9% to 2.4p a share.
Broker Jefferies said the update was "not quite good enough", with the stronger margin accompanied by insufficient sales progress and investment.
Analysts highlighted signs that strong pain relief and digestive health sales were supported by retailers ordering ahead of product launches.
They warned that claims of "over-earnings" would gain traction among bearish investors, but did not expect full-year earnings forecasts to change significantly.
