Haleon PLC (LSE:HLN, NYSE:HLN) will report its first results as a standalone business on Tuesday, after being spun out of GSK PLC (LSE:GSK, NYSE:GSK) in the summer as the largest newcomer on the London Stock Exchange for over a decade.
Listed on the FTSE 100 and on the NYSE, the group, in which American giant Pfizer also has a significant stake, is one of the world’s largest makers of consumer healthcare products, owning brands from Sensodyne and Aquafresh toothpaste, Voltarol and Panadol pain relief, to as respiratory, digestive health, vitamins and supplements.
Life as a separate company has not been easy, with the shares initially sliding as many Glaxo investors were not interested in holding their new shares, and then tumbling along with those of their former parent after the launch of legal claims that stomach acid drug Zantac, which was first developed by GSK, cause cancer.
Although Haleon itself never marketed the product, the litigation risk is expected to remain a share price headwind "for at least the next six months", said Deutsche Bank in a note this month, with the focus for Haleon shares being the number of claims, ownership rights and indemnities.
After the separate shares debuted at 330p on July 18 with a £30.5bn market valuation, fell 7% on its first day of dealings and again on its second, before hitting a Zantac-inspired low just above 241p early this month.
But, focusing just on the company's current business, soon after listing in July it upped its financial guidance for the full year by two percentage points, saying it expects the top line to grow by between 6% and 8%.
Based on this trading update there should be few surprises in the numbers, though with retailers reporting that squeezed consumers are trading down to own-brand products, there is a possibility that shoppers will swap away from Haleon's brands to cheaper options.
The big results to watch with Haleon will be its third-quarter numbers, or more specifically the date.
As Pfizer currently holds a 32% stake and GSK around 13.5% and a lockup agreement prevents both from selling down their holdings until whenever Haleon publishes third-quarter results or 10 November – whichever happens first.