Q2 2025 Haleon PLC Earnings Call - Pre-Recorded

[music], Hello, and welcome to our half year results presentation.

Brian: Hello, welcome to our Half Year Results Presentation. We're continuing to make real strides in transforming Haleon into a world-class consumer company with an agile, performance-focused culture. I'll come to the strategic progress we've made, but I'd like to start with an overview of our first half results. In challenging market conditions, we delivered 3.2% organic growth, with good performances across EMEA, LatAm, and Asia Pacific. That progress was partially offset by weak US consumer and retail environment that impacted our performance in North America. We continued to make strong progress against our productivity agenda. That resulted in 9.9% organic profit growth, with continued investment in A&P and R&D to support our brands and categories. At the same time, 58% of the business either gained or maintained share. That's a good performance, demonstrating our brands are continuing to resonate with consumers.

Brian McNamara: Hello, welcome to our Half Year Results Presentation. We're continuing to make real strides in transforming Haleon into a world-class consumer company with an agile, performance-focused culture. I'll come to the strategic progress we've made, but I'd like to start with an overview of our first half results. In challenging market conditions, we delivered 3.2% organic growth, with good performances across EMEA, LatAm, and Asia Pacific. That progress was partially offset by weak US consumer and retail environment that impacted our performance in North America. We continued to make strong progress against our productivity agenda. That resulted in 9.9% organic profit growth, with continued investment in A&P and R&D to support our brands and categories. At the same time, 58% of the business either gained or maintained share. That's a good performance, demonstrating our brands are continuing to resonate with consumers.

Brian McNamara: Hello, and welcome to our half-year results presentation. We are continuing to make real strides in transforming Haleon plc into a world-class consumer company with an agile, performance-focused culture. I will come to the strategic progress we have made, but I would like to start with an overview of our first half results. In challenging market conditions, we delivered 3.2% organic growth, with good performances across EMEA and LATAM and Asia Pacific. That progress was partially offset by a weak U.S. consumer and retail environment that impacted our performance in North America. We continued to make strong progress against our productivity agenda. That resulted in 9.9% organic profit growth, with continued investment in AMP and R&D to support our brands and categories. At the same time, 58% of the business either gained or maintained share. That is a good performance, demonstrating our brands are continuing to resonate with consumers.

We're continuing to make real strides in transforming Haley on into a world class consumer company.

With an agile performance focused culture.

I'll come to the strategic progress we've made.

But I'd like to start with an overview of our first half results.

In challenging market conditions, we delivered three 2% organic growth.

With good performances across EMEA, and Latam and Asia Pacific.

That progress was partially offset by weak U S consumer and retail environment that impacted our performance in North America.

We continued made strong progress against our productivity agenda.

That resulted in 9.9% organic profit growth with continued investment in A&P in R&D.

To support our brands and categories.

At the same time, 58% of the business either gained or maintained share.

That's a good performance demonstrating our brands are continuing to resonate with consumers.

Brian McNamara: While we expect our group organic growth to improve in the second half, North America is likely to remain challenged in the near term. We therefore expect fiscal year organic revenue growth to be around 3.5%. I will cover North America in more detail shortly. Our confidence in the continued delivery of our productivity agenda means we are today increasing organic operating profit guidance to high single digits for the year. Dawn Allen will give you more detail on our financial performance shortly. First, I will talk through the progress we are making on our Win is Won strategy that I outlined at our recent Capital Markets Day and about the confidence it gives us in our medium-term guidance. Win is Won is all about how we will go after the opportunity ahead to realize Haleon plc’s full potential.

Brian: While we expect our group organic growth to improve in the second half, North America is likely to remain challenged in the near term. We therefore expect fiscal year organic revenue growth to be around 3.5%. I will cover North America in more detail shortly. Our confidence in the continued delivery of our productivity agenda means we are today increasing organic operating profit guidance to high single-digit for the year. Dawn will give you more detail on our financial performance shortly. First, I'll talk through the progress we are making on our 1 is 1 strategy that I outlined at our recent Capital Markets Day, and about the confidence it gives us in our medium-term guidance. 1 is 1 is all about how we'll go after the opportunity ahead to realize Haleon's full potential.

Brian McNamara: While we expect our group organic growth to improve in the second half, North America is likely to remain challenged in the near term. We therefore expect fiscal year organic revenue growth to be around 3.5%. I will cover North America in more detail shortly. Our confidence in the continued delivery of our productivity agenda means we are today increasing organic operating profit guidance to high single-digit for the year. Dawn will give you more detail on our financial performance shortly. First, I'll talk through the progress we are making on our 1 is 1 strategy that I outlined at our recent Capital Markets Day, and about the confidence it gives us in our medium-term guidance. 1 is 1 is all about how we'll go after the opportunity ahead to realize Haleon's full potential.

We expect our group organic growth to improve in the second half.

North America is likely to remain challenged in the near term.

We therefore expect fiscal year organic revenue growth to be around three 5%.

We'll cover in North America in more detail shortly.

Our confidence in the continued delivery of our productivity agenda.

It means we are today, increasing organic operating profit guidance to high single digit for the year.

Don will give you more detail on our financial performance shortly.

But first.

I'll talk to the progress we are making on our win is one strategy that I outlined at our recent capital markets day.

And about the confidence it gives us and our medium term guidance.

One is one is all about how we'll go after the opportunity ahead.

To realize Haley on full potential.

Brian McNamara: As part of that, we set out two ambitions as we move into our next phase: to reach 1 billion more consumers by 2030 and to generate industry-leading shareholder returns. We will deliver those ambitions through our strategic priorities of growth, productivity, and culture. Today, I am going to focus on two of these strategic priorities: growth and productivity. I will talk more about the progress we are making on our culture shifts at full year, starting with growth, where we have three significant opportunities. First, closing the incident-first treatment gap. We talked about Otrivin Nasal Mist, our nasal decongestant brand, at Capital Markets Day. Today, 65% of consumers in our key markets suffer from nasal congestion, but only half of them treat their symptoms.

Brian: As part of that, we set out 2 ambitions as we move into our next phase: to reach 1 billion more consumers by 2030, and to generate industry-leading shareholder returns. We will deliver those ambitions through our strategic priorities of growth, productivity, and culture. Today, I'm gonna focus on 2 of these strategic priorities, growth and productivity. I'll talk more about the progress we're making on our culture shifts at full year. Starting with growth, where we have 3 significant opportunities. First, closing the incident first treatment gap. We talked about Otrivin Nasal Mist, our nasal decongestant brand, at Capital Markets Day. Today, 65% of consumers in our key markets suffer from nasal congestion, but only half of them treat their symptoms. We've launched Otrivin with an innovative mist dispenser, giving consumers a more comfortable experience and helping to drive mid-single digit growth for Otrivin in the first half.

Brian McNamara: As part of that, we set out 2 ambitions as we move into our next phase: to reach 1 billion more consumers by 2030, and to generate industry-leading shareholder returns. We will deliver those ambitions through our strategic priorities of growth, productivity, and culture. Today, I'm gonna focus on 2 of these strategic priorities, growth and productivity. I'll talk more about the progress we're making on our culture shifts at full year. Starting with growth, where we have 3 significant opportunities. First, closing the incident first treatment gap. We talked about Otrivin Nasal Mist, our nasal decongestant brand, at Capital Markets Day. Today, 65% of consumers in our key markets suffer from nasal congestion, but only half of them treat their symptoms. We've launched Otrivin with an innovative mist dispenser, giving consumers a more comfortable experience and helping to drive mid-single digit growth for Otrivin in the first half.

As part of that we set out to ambitions.

As we move into our next phase.

To reach 1 billion more consumers by 2030.

And to generate industry, leading shareholder returns.

We will deliver those ambitions through our strategic priorities of growth productivity and culture.

Today I'm going to focus on two of these strategic priorities growth and productivity.

Talk more about the progress, we're making on our culture shifts at full year.

Starting with growth.

We have three significant opportunities.

First closing the incident first treatment gap.

We talked about ultra than nasal mist, our nasal decongestant brand at capital markets day today, 65% of consumers in our key markets.

Suffer from nasal congestion.

But only half of them treat their symptoms.

Brian McNamara: We've launched Otrivin with an innovative mist dispenser, giving consumers a more comfortable experience and helping to drive mid-single-digit growth for Otrivin in the first half. We've taken this new format to eight markets so far, and we expect to take it to 18 by the end of the year, including the U.S. and Italy. In fact, by the end of 2025, we'll reach nearly 50% of the global nasal spray market. That's up from 10% last year. By the end of 2026, we'll have taken it to 26 markets. So far, we've seen encouraging results in all markets where we've launched, and we have achieved an average market share increase of 0.5 points. In the UK, one of our initial launch markets, we've also seen significant penetration improvement. Today, over 50% of the users are new to the brand, and we have strong repeat purchase rates.

We launched the ultra win with an innovative Mr. Spencer.

Giving consumers a more comfortable experience.

And helping to drive mid single digit growth for ultra than in the first half.

Brian: We've taken this new format to 8 markets so far, and we expect to take it to 18 by the end of the year, including the US and Italy. In fact, by the end of 2025, we will reach nearly 50% of the global nasal spray market. That's up from 10% last year. By the end of 2026, we'll have taken it to 26 markets. So far, we've seen encouraging results in all markets where we've launched, and we have achieved an average market share increase of 0.5 points. In the UK, one of our initial launch markets, we've also seen significant penetration improvement. Today, over 50% of the users are new to the brand, and we have strong repeat purchase rates. Second, innovation-led premiumization and Sensodyne, which once again outperformed the market.

Brian McNamara: We've taken this new format to 8 markets so far, and we expect to take it to 18 by the end of the year, including the US and Italy. In fact, by the end of 2025, we will reach nearly 50% of the global nasal spray market. That's up from 10% last year. By the end of 2026, we'll have taken it to 26 markets. So far, we've seen encouraging results in all markets where we've launched, and we have achieved an average market share increase of 0.5 points. In the UK, one of our initial launch markets, we've also seen significant penetration improvement. Today, over 50% of the users are new to the brand, and we have strong repeat purchase rates. Second, innovation-led premiumization and Sensodyne, which once again outperformed the market.

We've taken this new format to eight markets so far.

And we expect to take it to 18 by the end of the year, including the U S and Italy.

In fact by the end of 2025, we will reach nearly 50% of the global nasal spray market.

That's up from 10% last year.

And by the end of 2026, we'll have taken it to 26 markets.

So far we've seen encouraging results in all markets, where we've launched.

And we have achieved an average market share increase of 0.5 points.

In the U K one of our initial launch markets. We've also seen significant penetration improvement.

Today over 50% of the users are new to the brand.

And we have strong repeat purchase rates.

Brian McNamara: Second, innovation-led premiumization and Sensodyne, which once again outperformed the market. Here, 45% of the population suffer from sensitive teeth, but only one in three of them use a sensitivity toothpaste. With Sensodyne, we are focused on building long-term platforms for growth. Over the past year, we launched our new clinical platform, designed to deliver clinically proven and expert-recommended solutions for consumers. The platform now includes three products: Clinical White, Clinical Repair, and Pronamel Clinical Enamel Strength. These three products are supported by 11 clinical studies, which validate the claims and benefits of the range. All three are performing well, supporting high single-digit organic growth for Sensodyne in the half, as well as market share gains. In the U.S., our largest market for Sensodyne, we've grown our share by over 50 basis points in the last six months.

Innovation led premium innovation, and sensitized, which once again outperformed the market.

Brian: Here, 45% of the population suffer from sensitive teeth, but only one in three of them use a sensitivity toothpaste. With Sensodyne, we are focused on building long-term platforms for growth. Over the past year, we launched our new clinical platform, designed to deliver clinically proven and expert-recommended solutions for consumers. The platform now includes 3 products: Clinical White, Clinical Repair, and Pronamel Clinical Enamel Strength. These 3 products are supported by 11 clinical studies, which validate the claims and benefits of the range. All three are performing well, supporting high single-digit organic growth for Sensodyne in the half, as well as market share gains. In the US, our largest market for Sensodyne, we've grown our share by over 50 basis points in the last 6 months.

Brian McNamara: Here, 45% of the population suffer from sensitive teeth, but only one in three of them use a sensitivity toothpaste. With Sensodyne, we are focused on building long-term platforms for growth. Over the past year, we launched our new clinical platform, designed to deliver clinically proven and expert-recommended solutions for consumers. The platform now includes 3 products: Clinical White, Clinical Repair, and Pronamel Clinical Enamel Strength. These 3 products are supported by 11 clinical studies, which validate the claims and benefits of the range. All three are performing well, supporting high single-digit organic growth for Sensodyne in the half, as well as market share gains. In the US, our largest market for Sensodyne, we've grown our share by over 50 basis points in the last 6 months.

Here, 45% of the population suffer from sensitive teeth.

But only one in three of them use the sensitivity toothpaste.

With centered on where our focus on building long term platforms for growth.

Over the past year, we launched our new clinical platform.

Designed to deliver clinically proven and expert recommended solutions for consumers.

The platform now includes three products clinical white clinics.

Clinical repair and pro Namru clinical enamel strength.

These food products are supported by 11 clinical studies.

It's validated claims and benefits of the range.

And all three are performing well.

Supporting high single digit organic growth for <unk> in the half as well as market share gains.

In the U S. Our largest market for sensor die.

We've grown our share by over 50 basis points in the last six months.

Brian McNamara: That's a direct result of our clinical platform, which we launched with Clinical White last year and Pronamel Clinical Enamel Strength at the start of this year. This has solidified our leadership in the global therapeutic oral health category, and there is more to come. Clinical White is now in 17 markets globally, and we expect to take it to 21 markets by the end of the year. Similarly, Clinical Repair, our best sensitivity innovation that we launched in 2024, is now in 16 markets, and we will be in 21 markets by the end of the year. Finally, we will take Pronamel Clinical Enamel Strength, our new innovation launched in the U.S., to more markets in 2026. We are very confident that the clinical platform and our pipeline will give us a long, multi-year runway of growth for Sensodyne. Finally, we are driving penetration among lower-income consumers.

Brian: That's a direct result of our Clinical Platform, which we launched with Clinical White last year and Pronamel Clinical Enamel Strength at the start of this year. This has solidified our leadership in the global therapeutic oral health category. There is more to come. Clinical White is now in 17 markets globally. We expect to take it to 21 markets by the end of the year. Similarly, Clinical Repair, our best sensitivity innovation that we launched in 2024, is now in 16 markets. We will be in 21 markets by the end of the year. Finally, we'll take Pronamel Clinical Enamel Strength, our new innovation launched in the US, to more markets in 2026. We're very confident that the Clinical Platform and our pipeline will give us long multi-year runway of growth for Sensodyne. Finally, we're driving penetration among lower-income consumers.

Brian McNamara: That's a direct result of our Clinical Platform, which we launched with Clinical White last year and Pronamel Clinical Enamel Strength at the start of this year. This has solidified our leadership in the global therapeutic oral health category. There is more to come. Clinical White is now in 17 markets globally. We expect to take it to 21 markets by the end of the year. Similarly, Clinical Repair, our best sensitivity innovation that we launched in 2024, is now in 16 markets. We will be in 21 markets by the end of the year. Finally, we'll take Pronamel Clinical Enamel Strength, our new innovation launched in the US, to more markets in 2026. We're very confident that the Clinical Platform and our pipeline will give us long multi-year runway of growth for Sensodyne. Finally, we're driving penetration among lower-income consumers.

That's a direct result of our clinical platform.

Which we've launched with clinical white last year.

And pronominal clinical enamel strength at the start of this year.

This has solidified our leadership in the global therapeutic oral health category.

And there is more to come.

Clinical white is now in 17 markets globally.

And we expect to take at the 21 markets by the end of the year.

Similarly, clinical repair our best sensitivity innovation that we launched in 2024 is now in 16 markets and we will be in 21 markets by the end of the year in.

And finally, we will take pro Namgyal clinical enamel strength, our new innovation launched in the U S to more markets in 2026.

So we're very confident that the clinical platform and our pipeline.

We will give us long multiyear runway of growth for <unk>.

And finally, we're driving penetration among lower income consumers.

Brian McNamara: By that, I mean all consumer groups outside the highest-income bracket. We are doing that in two ways: growing the reach of our current portfolio through our route to market and by innovating for lower-income consumer needs. India is a good example of how we are expanding our route to market and leveraging our local knowledge and presence. During the half, we have more than doubled our direct coverage of small towns. By doing that, we are driving strong distribution for the INR 20 Sensodyne pack we launched last year, and that is supporting strong double-digit growth for Sensodyne in India during the period. We are also innovating to develop new and more tailored offerings for low-income consumers. In April, we launched Centrum Recharge in India. This new product taps into the need for affordable multivitamins that focus on energy and are priced at INR 10.

Brian: By that, I mean all consumer groups outside the highest income bracket. We're doing that in 2 ways: growing the reach of our current portfolio through our route to market and by innovating for lower-income consumer needs. India is a good example of how we're expanding our route to market and leveraging our local knowledge and presence. During the half, we have more than doubled our direct coverage of small towns. By doing that, we are driving strong distribution for the INR 20 Sensodyne pack we launched last year. That's supporting strong double-digit growth for Sensodyne in India during the period. We're also innovating to develop new and more tailored offering for low-income consumers. In April, we launched Centrum Recharge in India. This new product taps into the need for affordable multivitamins that focuses on energy and are priced at INR 10. Consumer feedback has been strong.

Brian McNamara: By that, I mean all consumer groups outside the highest income bracket. We're doing that in 2 ways: growing the reach of our current portfolio through our route to market and by innovating for lower-income consumer needs. India is a good example of how we're expanding our route to market and leveraging our local knowledge and presence. During the half, we have more than doubled our direct coverage of small towns. By doing that, we are driving strong distribution for the INR 20 Sensodyne pack we launched last year. That's supporting strong double-digit growth for Sensodyne in India during the period. We're also innovating to develop new and more tailored offering for low-income consumers. In April, we launched Centrum Recharge in India. This new product taps into the need for affordable multivitamins that focuses on energy and are priced at INR 10. Consumer feedback has been strong.

By that I mean, all consumer groups outside the highest income bracket.

We're doing that in two ways.

Growing the reach of our current portfolio through our route to market and.

By innovating for lower income consumer needs.

India is a good example of how we're expanding our route to market and leveraging our local knowledge and presence.

During the half we have more than doubled our direct coverage of small towns.

By doing that we are driving strong distribution for the 20th rupee sensitive AIPAC, we launched last year.

And that supporting strong double digit growth for centered on in India during the period.

We're also innovating.

To develop new and Moertel at offering for low income consumers.

In April we launched Centrum recharge in India.

This new product taps into the need for affordable multi vitamins.

That focuses on energy and are priced at 10 rupees consumer feedback has been strong.

Brian McNamara: Consumer feedback has been strong. In the Philippines, we are focusing on the well-being of children in lower-income families through Centrum Kids, cementing Centrum's number one position in that country. We have a strong forward pipeline of other low-income offerings to come in the next 24 months. I would now like to look at our productivity agenda. We have a real opportunity to increase gross margin. The work we have been doing over the last couple of years is delivering strong results. Our organic gross profit was up 5.7% in the half. In turn, that drove 160 basis points of gross margin expansion, giving us capacity to continue to reinvest in the business with strong investment in AMP and R&D. This resulted in organic operating profit increasing by 9.9% in the half and margin up by 140 basis points.

Brian: In the Philippines, we're focusing on the well-being of children in lower-income families through Centrum Kids, cementing Centrum's number one position in that country. We have a strong forward pipeline of other low-income offerings to come in the next 24 months. I'd now like to look at our productivity agenda. We have a real opportunity to increase gross margin. The work we've been doing over the last couple years is delivering strong results. Our organic gross profit was up 5.7% in the half. In turn, that drove 160 basis points of gross margin expansion, giving us capacity to continue to reinvest in the business with strong investment in A&P and R&D. This resulted in organic operating profit increasing by 9.9% in the half and margin up by 140 basis points.

Brian McNamara: In the Philippines, we're focusing on the well-being of children in lower-income families through Centrum Kids, cementing Centrum's number one position in that country. We have a strong forward pipeline of other low-income offerings to come in the next 24 months. I'd now like to look at our productivity agenda. We have a real opportunity to increase gross margin. The work we've been doing over the last couple years is delivering strong results. Our organic gross profit was up 5.7% in the half. In turn, that drove 160 basis points of gross margin expansion, giving us capacity to continue to reinvest in the business with strong investment in A&P and R&D. This resulted in organic operating profit increasing by 9.9% in the half and margin up by 140 basis points.

In the Philippines.

We're focusing on the well being of children and lower income families through Centrum kids.

Cementing Centrum is number one position in that country.

And we have a strong forward pipeline of other low income offerings to come in the next 24 months.

I'd now like to look at our productivity agenda, we have a real opportunity to increase gross margin.

The work we've been doing over the last couple of years is delivering strong results.

Our organic gross profit was up five 7% in the half.

In turn that drove a 160 basis points of gross margin expansion.

Giving us capacity to continue to reinvest in the business with.

With strong investment in A&P in R&D.

This resulted in organic operating profit increasing by nine 9% in the half.

And margin up by 140 basis points.

Brian McNamara: At Capital Markets Day, we talked about multiple initiatives underway in our supply chain to drive stronger gross margin. I will give you some specific examples of the progress that we have made so far. One of our goals is to reduce our SKUs by 30% over the next few years. We are well on our way to achieving that, with our SKU cap now by 16% since the beginning of 2024. We are also reducing our formulations by 25% to 30%. We are well on our way towards reaching that goal. Let's bring this to life by looking at our site in Levice, Slovakia. Here, we have reduced the number of formulations by 25% in the last two years. At the same time, we've increased volumes by 25% as we transition production from Maidenhead, which is driving material savings.

Brian: At Capital Markets Day, we talked about multiple initiatives underway in our supply chain to drive stronger gross margin. I'll give you some specific examples of the progress that we've made so far. One of our goals is to reduce our SKUs by 30% over the next few years. We're well on our way to achieving that with our SKU count now by 16% since the beginning of 2024. We're also reducing our formulations by 25% to 30%. We're well on our way towards reaching that goal. Let's bring this to life by looking at our site in Levice, Slovakia. Here, we have reduced the number of formulations by 25% in the last 2 years. At the same time, we've increased volumes by 25% as we transition production from Maidenhead, which is driving material savings.

Brian McNamara: At Capital Markets Day, we talked about multiple initiatives underway in our supply chain to drive stronger gross margin. I'll give you some specific examples of the progress that we've made so far. One of our goals is to reduce our SKUs by 30% over the next few years. We're well on our way to achieving that with our SKU count now by 16% since the beginning of 2024. We're also reducing our formulations by 25% to 30%. We're well on our way towards reaching that goal. Let's bring this to life by looking at our site in Levice, Slovakia. Here, we have reduced the number of formulations by 25% in the last 2 years. At the same time, we've increased volumes by 25% as we transition production from Maidenhead, which is driving material savings.

At capital markets day, we.

We talked about multiple initiatives underway in our supply chain to drive stronger gross margin.

I'll give you some specific examples of the progress that we've made so far.

One of our goal is to reduce our skus by 30% over the next few years.

We're well on our way to achieving that.

With our SKU count down by 16% since the beginning of 2024.

We're also reducing our formulations by 25% to 30%.

We're well on our way towards reaching that goal.

Let's bring this to life by looking at our site in La Vijay Slovakia.

Here, we have reduced the number of formulations by 25% in the last two years.

At the same time, we've increased volumes by 25%.

As we transition production from Maidenhead.

Which is driving material savings.

Brian McNamara: We are also looking to optimize the use of contract manufacturers against what we do in-house. Over the last two years, we reduced the number of contract manufacturers by 13%. These are only a few examples, but they all support our confidence in driving gross margin, which underpins our upgraded profit guidance for this year. We look forward to sharing more on our progress at full year. I'd now like to come back to North America. As I mentioned, the U.S. market environment has become more challenging than we expected, with consumers cautious around spending. We are also seeing a channel shift from drug to dollar and club. While we have strong positions in both those channels, this shift is causing some short-term volatility in inventory dynamics, where retailers are tightly managing working capital.

Brian: We're also looking to optimize the use of contract manufacturers against what we do in-house. Over the last 2 years, we reduced the number of contract manufacturers by 13%. These are only a few examples, but they all support our confidence in driving gross margin, which underpins our upgraded profit guidance for this year. We look forward to sharing more on our progress at full year. I'd now like to come back to North America. As I mentioned, the US market environment has become more challenging than we expected, with consumers cautious around spending. We are also seeing a channel shift from drug to dollar and club. While we have strong positions in both those channels, this shift is causing some short-term volatility in inventory dynamics, where retailers are tightly managing working capital.

Brian McNamara: We're also looking to optimize the use of contract manufacturers against what we do in-house. Over the last 2 years, we reduced the number of contract manufacturers by 13%. These are only a few examples, but they all support our confidence in driving gross margin, which underpins our upgraded profit guidance for this year. We look forward to sharing more on our progress at full year. I'd now like to come back to North America. As I mentioned, the US market environment has become more challenging than we expected, with consumers cautious around spending. We are also seeing a channel shift from drug to dollar and club. While we have strong positions in both those channels, this shift is causing some short-term volatility in inventory dynamics, where retailers are tightly managing working capital.

And we're also looking to optimize the use of contract manufacturers against what we do in house.

Over the last few years, we've reduced the number of contract manufacturers by 13%.

These are only a few examples but they all support our confidence in driving gross margin.

Which underpins our upgraded profit guidance for this year.

We look forward to sharing more on our progress at full year.

I would now like to come back to North America.

As I mentioned the U S market environment has become more challenging than we expected.

Consumers cautious around spending.

We're also seeing a channel shift from drug to dollar and club, while we have strong positions in both those channels.

This shift is causing some short term volatility and inventory dynamics.

Where retailers are tightly managing working capital.

Brian McNamara: Our consumption is slightly up in the second quarter against a market that declined by around a half percent. In that context, oral health continues to perform well, driving strong share gains. We also saw a seasonal weakness in allergy, as well as more difficult trading conditions in smokers' health. Against that backdrop, we are focused on increasing our competitiveness, as we expect the market to remain challenging in the near term. To do that, we've taken clear, deliberate steps to return our North America business to stronger growth. Over the last quarter, we've made important leadership changes, including appointing a new President for North America, who has deep consumer experience and a track record of strong execution. We are also driving improvement with Advil and Centrum.

Brian: Our consumption is slightly up in Q2 against a market that declined by around 0.5%. In that context, oral health continues to perform well, driving strong share gains. We also saw a seasonal weakness in allergy, as well as more difficult trading conditions in Smokers Health. Against that backdrop, we're focused on increasing our competitiveness as we expect the market to remain challenging in the near term. To do that, we've taken clear, deliberate steps to return our North America business to stronger growth. Over the last quarter, we've made important leadership changes, including appointing a new president for North America who has deep consumer experience and a track record of strong execution. We're also driving improvement with Advil and Centrum.

Brian McNamara: Our consumption is slightly up in Q2 against a market that declined by around 0.5%. In that context, oral health continues to perform well, driving strong share gains. We also saw a seasonal weakness in allergy, as well as more difficult trading conditions in Smokers Health. Against that backdrop, we're focused on increasing our competitiveness as we expect the market to remain challenging in the near term. To do that, we've taken clear, deliberate steps to return our North America business to stronger growth. Over the last quarter, we've made important leadership changes, including appointing a new president for North America who has deep consumer experience and a track record of strong execution. We're also driving improvement with Advil and Centrum.

Our consumption is slightly up in the second quarter against a market that declined by around a half percent.

In that context oral health continues to perform well driving strong share gains, but we also saw a seasonal weakness analogy.

As well as more difficult trading conditions in smokers health.

Against that backdrop, we're focused on increasing our competitiveness as.

As we expect the market to remain challenging in the near term.

To do that we've taken clear deliberate steps to return our north American business to stronger growth.

Over the last quarter, we've made important leadership changes, including appointing a new president for North America, who has deep consumer experience and a track record of strong execution.

We're also driving improvement with advil <unk> centrum.

Brian McNamara: Advil has already started to show recovery in share towards the end of the quarter, and we are building on that performance with a new campaign that's just gone live. Early feedback from consumers has been very positive. With Centrum, we are launching a number of new product innovations with improved formulations and consumer experiences, as well as activating new promotions in the back half of the year. In short, the priorities are clear, and we are moving at pace to improve our performance. I'll now hand over to Dawn to run you through the first half results in more detail.

Brian: Advil has already started to show recovery and share towards the end of the quarter, and we're building on that performance with a new campaign that's just gone live. Early feedback from consumers has been very positive. With Centrum, we're launching a number of new product innovations with improved formulations and consumer experiences, as well as activating new promotions in the back half of the year. In short, the priorities are clear, and we are moving at pace to improve our performance. I'll now hand over to Dawn to run you through the first half results in more detail.

Brian McNamara: Advil has already started to show recovery and share towards the end of the quarter, and we're building on that performance with a new campaign that's just gone live. Early feedback from consumers has been very positive. With Centrum, we're launching a number of new product innovations with improved formulations and consumer experiences, as well as activating new promotions in the back half of the year. In short, the priorities are clear, and we are moving at pace to improve our performance. I'll now hand over to Dawn to run you through the first half results in more detail.

Advil has already started to show recovery and share towards the end of the quarter.

And we're building on that performance of the New campaign, that's just gone live.

Early feedback from consumers has been very positive.

And with Centrum, we're launching a number of new product innovations with improved formulations and consumer experiences.

As well as activating new promotions in the back half of the year.

In short the priorities are clear.

And we are moving at pace to improve our performance.

I'll now hand over to dawn to run you through the first half results in more detail.

Dawn: Thank you, Brian. Good morning, everyone. We've made good progress in the first half despite a more challenging environment in the US. The key highlights are continued outperformance in oral health, good balanced growth across EMEA, LATAM, and Asia Pacific, 9.9% increase in organic operating profit to deliver operating margin of 22.7% in line with the prior year. 160 basis points organic improvement in gross margin, well ahead of our 50 to 80 basis points target. High quality earnings with continued healthy investments in A&P and R&D. Excellent cash performance with a 17-day reduction in our working capital cycle versus H1 2024 and flat versus the end of last year. Now let's look at the half in more detail. Revenue grew 3.2% with 2.4% from price and 0.8% from volume mix.

Dawn Allen: Thank you, Brian. Good morning, everyone. We've made good progress in the first half despite a more challenging environment in the US. The key highlights are continued outperformance in oral health, good balanced growth across EMEA, LATAM, and Asia Pacific, 9.9% increase in organic operating profit to deliver operating margin of 22.7% in line with the prior year. 160 basis points organic improvement in gross margin, well ahead of our 50 to 80 basis points target. High quality earnings with continued healthy investments in A&P and R&D. Excellent cash performance with a 17-day reduction in our working capital cycle versus H1 2024 and flat versus the end of last year. Now let's look at the half in more detail. Revenue grew 3.2% with 2.4% from price and 0.8% from volume mix.

Dawn Allen: Thank you, Brian. Good morning, everyone. We've made good progress in the first half, despite a more challenging environment in the U.S. The key highlights are continued outperformance in oral health, good balanced growth across EMEA, LATAM, and Asia Pac, 9.9% increase in organic operating profit to deliver operating margin of 22.7% in line with the prior year, 160 basis points organic improvement in gross margin, well ahead of our 50 to 80 basis points target, high-quality earnings with continued healthy investments in AMP and R&D, excellent cash performance with a 17-day reduction in our working capital cycle versus half one 2024, and flat versus the end of last year. Now let's look at the half in more detail. Revenue grew 3.2%, with 2.4% from price and 0.8% from volume mix. Price growth came from all regions.

Thank you Brian good morning, everyone.

We've made good progress in the first half despite a more challenging environment in the U S.

The key highlights a.

Continued outperformance in oral health.

Good balanced growth across EMEA, and Latam and Asia Pac.

9.9% increase in organic operating profit to deliver operating margin of 22, 7% in line with the prior year.

160 basis points organic improvement in gross margin well ahead of our 50 to 80 basis points target.

High quality earnings with continued healthy investments in A&P and R&D.

Excellent cash performance with a 17 day reduction in our working capital cycle. This is half one 'twenty 'twenty four and flat there since the end of last year.

Now, let's look at the half in more detail.

Revenue grew three 2% with 2.4% comprised of note 0.8 sand from funding mix.

Dawn: Price growth came from all regions. On volume mix, we saw a step up from Q1 in EMEA and LATAM and Asia Pacific to drive a more balanced price volume mix, with Asia Pacific delivering two-thirds of its year-to-date growth from volume. A 9% devaluation of US dollar against GBP in the last four months, as well as the impact of divestments last year from ChapStick and non-US Smokers Health impacted reported revenue, which declined 3.8%. Moving to operating profit. Organic operating profit growth was strong at 9.9%, 140 basis points improvement. This enabled us to offset translational FX and divestment headwinds to maintain adjusted operating margin of 22.7%. Looking at the drivers in more detail.

Dawn Allen: Price growth came from all regions. On volume mix, we saw a step up from Q1 in EMEA and LATAM and Asia Pacific to drive a more balanced price volume mix, with Asia Pacific delivering two-thirds of its year-to-date growth from volume. A 9% devaluation of US dollar against GBP in the last four months, as well as the impact of divestments last year from ChapStick and non-US Smokers Health impacted reported revenue, which declined 3.8%. Moving to operating profit. Organic operating profit growth was strong at 9.9%, 140 basis points improvement. This enabled us to offset translational FX and divestment headwinds to maintain adjusted operating margin of 22.7%. Looking at the drivers in more detail.

This growth came from all regions.

Dawn Allen: On volume mix, we saw a step up from Q1 in EMEA, LATAM, and Asia Pac to drive a more balanced price-volume mix, with Asia Pac delivering two-thirds of its year-to-date growth from volume. A 9% devaluation of U.S. dollar against sterling in the last four months, as well as the impact of divestments last year from ChapStick and non-U.S. smokers' health, impacted reported revenue, which declined 3.8%. Moving to operating profit, organic operating profit growth was strong at 9.9%, 140 basis points improvement. This enabled us to offset translational effects and divestment headwinds to maintain an adjusted operating margin of 22.7%. Looking at the drivers in more detail, the main driver of operating profit growth was gross profit at 160 basis points, significantly ahead of our target of 50 to 80 basis points.

And volume mix, we saw a step up from Q1 in EMEA, and Latam and Asia Pac to drive a more balanced price volume mix with Asia Pac delivering two sets of each year to date growth from volume.

A 9% devaluation of U S dollar against Sterling in the last four months as well as the impact of divestments last year from chat state and non U S. Navy is how impacted reported revenue which declined three 8%.

Moving to operating profit organic operating profit growth was strong at nine 9% 140 basis points improvement. This enabled us to offset translational FX and divestment headwinds to maintain adjusted operating.

Margin of 22, 7%.

Looking at the drivers in more detail.

Dawn: The main driver of operating profit growth was gross profit of 160 basis points, significantly ahead of our target of 50 to 80 basis points. Pricing to offset inflation and benefits from the supply chain productivity program were the key drivers of gross margin expansion. At our Capital Markets Day, we shared a significant opportunity in supply chain productivity savings, which we expect to result in GBP 800 million of gross savings over the next five years. In the near term, we expected savings to come from complexity reduction and operational excellence. These areas, alongside procurement savings, have been the key drivers of savings in the first half. The increase in gross profit has provided flexibility and agility in the P&L to enable us to continue to invest in A&P and R&D to drive growth.

Dawn Allen: The main driver of operating profit growth was gross profit of 160 basis points, significantly ahead of our target of 50 to 80 basis points. Pricing to offset inflation and benefits from the supply chain productivity program were the key drivers of gross margin expansion. At our Capital Markets Day, we shared a significant opportunity in supply chain productivity savings, which we expect to result in GBP 800 million of gross savings over the next five years. In the near term, we expected savings to come from complexity reduction and operational excellence. These areas, alongside procurement savings, have been the key drivers of savings in the first half. The increase in gross profit has provided flexibility and agility in the P&L to enable us to continue to invest in A&P and R&D to drive growth.

The main drive up operating profit growth with gross profit of 160 basis points significantly ahead of our target of 50 to 80 basis points pricing to offset inflation and benefit from the supply chain productivity program, where the key dry.

Dawn Allen: Pricing to offset inflation and benefits from the supply chain productivity program were the key drivers of gross margin expansion. At our Capital Markets Day, we shared a significant opportunity in supply chain productivity savings, which we expect to result in £800 million of gross savings over the next five years. In the near term, we expected savings to come from complexity reduction and operational excellence. These areas, alongside procurement savings, have been the key drivers of savings in the first half. The increase in gross profit has provided flexibility and agility in the P&L to enable us to continue to invest in AMP and R&D to drive growth. AMP spend increased 6.8% to 20.8% of sales as we continue to invest in our brand's geographic expansion and new product launches.

<unk> of gross margin expansion.

At our capital markets day, we shared a significant opportunity in supply chain productivity savings, which we expect to result in 800 million pounds of gross savings over the next five years.

In the near term, we expected savings to come from complexity reduction and operational excellence.

These areas alongside procurement savings have been the key drivers of savings in the first half.

The increase in gross profit has provided flexibility and agility in the P&L to enable us to continue to invest in A&P and R&D to drive growth.

Dawn: A&P spend increased 6.8% to 20.8% of sales as we continue to invest in our brands, geographic expansion, and new product launches. We continue to focus on maximizing the effectiveness of our spend, improving our ROI by 4% versus the prior year. R&D spend was up 9.1% as we maintained and improved the superiority of our brands to drive growth. This increase was focused across key innovation areas, scientific evidence generation for new and differentiated claims, as well as digital enablement. Across SG&A, we continue to drive end-to-end process simplification and cost discipline. We are on track to deliver and complete our 300 million GBP productivity program this year that we announced in 2023. Let's now look at the growth drivers, starting with the categories.

Dawn Allen: A&P spend increased 6.8% to 20.8% of sales as we continue to invest in our brands, geographic expansion, and new product launches. We continue to focus on maximizing the effectiveness of our spend, improving our ROI by 4% versus the prior year. R&D spend was up 9.1% as we maintained and improved the superiority of our brands to drive growth. This increase was focused across key innovation areas, scientific evidence generation for new and differentiated claims, as well as digital enablement. Across SG&A, we continue to drive end-to-end process simplification and cost discipline. We are on track to deliver and complete our 300 million GBP productivity program this year that we announced in 2023. Let's now look at the growth drivers, starting with the categories.

A&P spend increased six 8% to 28% of sales.

As we continue to invest in our brands geographic expansion and new product launches.

Dawn Allen: We continue to focus on maximizing the effectiveness of our spend, improving our ROI by 4% versus the prior year. R&D spend was up 9.1% as we maintained and improved the superiority of our brands to drive growth. This increase was focused across key innovation areas: scientific evidence generation for new and differentiated claims, as well as digital enablement. Across SG&A, we continue to drive end-to-end process simplification and cost discipline. We are on track to deliver and complete our £300 million productivity program this year that we announced in 2023. Let's now look at the growth drivers, starting with the categories. As Brian McNamara mentioned, oral health continues to deliver strong growth, up 8.7% in Q2 and 7.6% for the half. Growth was underpinned by innovation-led premiumization and geographic expansion.

We continue to focus on maximizing the effectiveness of our spend.

Improving our ROI by 4% versus the prior year.

R&D spend was up nine 1% as we maintained and improved the superiority of our brands to drive growth.

This increase was focused across key innovation areas.

Scientific evidence generation, the new and differentiated claims.

As well as digital enablement.

Across SG&A, we continue to drive end to end process simplification and cost discipline. We are on track to deliver and complete our 300 million pounds productivity program. This year that we announced in 2023.

Let's now look at the growth drivers starting with the categories.

Dawn: As Brian mentioned, oral health continues to deliver strong growth, up 8.7% in Q2 and 7.6% for the half. Growth was underpinned by innovation-led premiumization and geographic expansion. The key drivers of this growth are double-digit growth in Sensodyne during Q2, led by innovations including the Clinical Platform as well as expert recommendations, which reached a multiyear high for the brand. parodontax also continues to deliver double-digit growth driven by innovation and our launch in China. We are confident in our strong runway for future growth in oral health, underpinned by a strong innovation pipeline and further geographic expansion. Moving to VMS, where Centrum outside of North America performed well at high single-digit growth in Q2. Key highlights are premium innovations, including Centrum Daily Kits in China and Korea, and expanding reach to lower income consumers with Centrum Kids in Philippines and Centrum Recharge in India.

Dawn Allen: As Brian mentioned, oral health continues to deliver strong growth, up 8.7% in Q2 and 7.6% for the half. Growth was underpinned by innovation-led premiumization and geographic expansion. The key drivers of this growth are double-digit growth in Sensodyne during Q2, led by innovations including the Clinical Platform as well as expert recommendations, which reached a multiyear high for the brand. parodontax also continues to deliver double-digit growth driven by innovation and our launch in China. We are confident in our strong runway for future growth in oral health, underpinned by a strong innovation pipeline and further geographic expansion. Moving to VMS, where Centrum outside of North America performed well at high single-digit growth in Q2. Key highlights are premium innovations, including Centrum Daily Kits in China and Korea, and expanding reach to lower income consumers with Centrum Kids in Philippines and Centrum Recharge in India.

As Brian mentioned oral health continues to deliver strong growth up eight 7% in Q2 and seven 6% for the half.

Growth was underpinned by innovation led premium Ization and geographic expansion.

Dawn Allen: The key drivers of this growth are double-digit growth in Sensodyne during Q2, led by innovations including the Clinical White platform, as well as expert recommendations, which reached a multi-year high for the brand. parodontax also continues to deliver double-digit growth, driven by innovation and our launch in China. We are confident in our strong runway for future growth in oral health, underpinned by a strong innovation pipeline and further geographic expansion. Moving to VMS, where Centrum outside of North America performed well at high single-digit growth in Q2. Key highlights are premium innovations, including Centrum Daily Kits in China and Korea, and expanding reach to lower-income consumers with Centrum Kits in the Philippines and Centrum Recharge in India. Overall, VMS was up 0.9% for both Q2 and the half, impacted by underperformance of Centrum in the U.S. In pain relief, we grew 2.5% for both Q2 and the half.

The key drivers of this growth are.

Double digit growth in sensor dine during Q2 led by innovations, including the clinical platform as well as expert recommendations, which reached a multiyear high for the brand.

Paragon tax also continues to deliver double digit growth driven by innovation and our launch in China.

We are confident in a strong runway for future growth in oral health.

Underpinned by strong innovation pipeline and further geographic expansion.

Moving to the M S.

<unk> Centrum outside of North America performed well at high single digit growth in Q2.

Key highlights all premium innovations, including Centrum daily kits in China and Korea.

And expanding reach to lower income consumers with centrum kits in Philippines, and Centrum recharge in India.

Dawn: Overall, VMS was up 0.9% for both Q2 and the half, impacted by underperformance of Centrum in the US. In pain relief, we grew 2.5% for both Q2 and the half. The key highlights are market outperformance in Panadol due to the launch of Dual Action, a combination of paracetamol and ibuprofen, which uses the technology of Advil, and improving consumption in Voltaren. This was supported by the launch of new format patches and the rollout of systemic VoltaDexibu in Germany and Italy. This leverages a new API that provides effective treatment with a smaller dose. Respiratory health was at 1.9% in the half, excluding the impact of US Smokers' Health. A good performance on Otrivin, driven by Nasal Mist, bringing new users into the spray category. This was offset by a softer allergy season in US and China and weakness in US Smokers' Health.

Dawn Allen: Overall, VMS was up 0.9% for both Q2 and the half, impacted by underperformance of Centrum in the US. In pain relief, we grew 2.5% for both Q2 and the half. The key highlights are market outperformance in Panadol due to the launch of Dual Action, a combination of paracetamol and ibuprofen, which uses the technology of Advil, and improving consumption in Voltaren. This was supported by the launch of new format patches and the rollout of systemic VoltaDexibu in Germany and Italy. This leverages a new API that provides effective treatment with a smaller dose. Respiratory health was at 1.9% in the half, excluding the impact of US Smokers' Health. A good performance on Otrivin, driven by Nasal Mist, bringing new users into the spray category. This was offset by a softer allergy season in US and China and weakness in US Smokers' Health.

Overall Vms was a no 0.9% for both Q2 and a half impacted by underperformance of Centrum in the U S.

In pain relief, we grew two 5% for both Q2 and a half.

Dawn Allen: The key highlights are market outperformance in Panadol due to the launch of Dual Action, a combination of paracetamol and ibuprofen, which uses the technology of Advil, and improving consumption in Voltaren. This was supported by the launch of new format patches and the rollout of systemic Voltaren 2% in Germany and Italy. This leverages a new API that provides effective treatment with a smaller dose. Respiratory health was at 1.9% in the half, excluding the impact of U.S. smokers' health. A good performance on Otrivin, driven by Otrivin Nasal Mist, bringing new users into the spray category. This was offset by a softer allergy season in the U.S. and China and weakness in U.S. smokers' health. Theraflu was at double digits as we lapped the inventory reduction from PE-containing products in the U.S. last year.

The key highlights our market outperformance and Panadol due to the launch of Gol action, a combination of paracetamol and ibuprofen, which uses the technology of advil.

And improving consumption invoke taryn. This was supported by the launch of new format patches and the rollout of systemic voted deck seafood in Germany and Italy.

This leverages a new API that provides effective treatment with a smaller dose.

Rasbury Treehouse was a one 9% in the half excluding the impact of U S. Smokers House, a good performance on ultra event, driven by nasal mist, bringing new users into the spray category.

This was offset by a softer allergy season in U S and China and weakness in U S snake his house.

Dawn: Theraflu was up double digit as we lap the inventory reduction from PE-containing products in the US last year. Overall, this resulted in a decline of 2% in Q2 and 0.5% for the half. Digestive health declined 2.8% in Q2 and 0.3% for the half, driven by high single-digit growth on TUMS thanks to the activation of the chewy bite innovation and mid-single digit growth on Benefiber from Grow What Feels Good campaign, both of which were more than offset by a negative phasing impact from ENO and a decline on Nexium. Finally, therapeutic skin health and other grew 6.1% in the half and 2.5% for Q2 due to growth in Fenistil and Xaverox. Turning now to the regions, starting with North America.

Dawn Allen: Theraflu was up double digit as we lap the inventory reduction from PE-containing products in the US last year. Overall, this resulted in a decline of 2% in Q2 and 0.5% for the half. Digestive health declined 2.8% in Q2 and 0.3% for the half, driven by high single-digit growth on TUMS thanks to the activation of the chewy bite innovation and mid-single digit growth on Benefiber from Grow What Feels Good campaign, both of which were more than offset by a negative phasing impact from ENO and a decline on Nexium. Finally, therapeutic skin health and other grew 6.1% in the half and 2.5% for Q2 due to growth in Fenistil and Xaverox. Turning now to the regions, starting with North America.

Theraflu was a double digit as we lap the inventory reduction from P containing products in the U S. Last year. Overall this resulted in a decline of 2% in Q2 and note 0.5% for the half.

Dawn Allen: Overall, this resulted in a decline of 2% in Q2 and 0.5% for the half. Digestive health declined 2.8% in Q2 and 0.3% for the half, driven by high single-digit growth on TUMS, thanks to the activation of the Chewy Bite innovation and mid-single-digit growth on Benefiber from our Grow What Feels Good campaign, both of which were more than offset by a negative phasing impact from Eno and a decline on Nexium. Therapeutic skin health and other grew 6.1% in the half and 2.5% for Q2 due to growth in Fenestyl and Zovirax. Turning now to the regions, starting with North America, the U.S. market has been more challenging than we expected. As Brian McNamara mentioned, we saw a sequential slowdown in consumption from Q1 to Q2, from 3.2% to minus 0.4%.

Digestive health declined two 8% in Q2 and no 0.3% for the half.

Driven by high single digit growth on tums, thanks to the activation of the chewy bite intervention and mid single digit growth on benefit from I grow what feels good campaign.

Both of which were more than offset by a negative phasing impact from IMO and the decline on nexium.

And finally therapies take skin house, another grew six 1% in the half and two 5% for Q2.

Due to growth in furnace, Dale and zovirax.

Turning now to the regions, starting with North America.

Dawn: The US market has been more challenging than we expected. As Brian mentioned, we saw a sequential slowdown in consumption from Q1 to Q2, from 3.2% to -0.4%. This was largely driven by a deterioration in consumer confidence, retailer destocking and channel shifting as consumers seek more value. Against this, we grew ahead of the market by 70 basis points in Q2. Growth was driven by oral health innovation, expert recommendations, and successful activations such as Gum Expert on parodontax. TUMS was driven by good in-market execution of TUMS Chewy Bites. Theraflu benefited from favorable comps versus the prior year. These were offset by a weaker allergy season, Smokers Health, and Centrum performance challenges. Overall, this resulted in revenue decline of 0.4% with pricing 0.2% and volume mix declining 0.6%.

Dawn Allen: The US market has been more challenging than we expected. As Brian mentioned, we saw a sequential slowdown in consumption from Q1 to Q2, from 3.2% to -0.4%. This was largely driven by a deterioration in consumer confidence, retailer destocking and channel shifting as consumers seek more value. Against this, we grew ahead of the market by 70 basis points in Q2. Growth was driven by oral health innovation, expert recommendations, and successful activations such as Gum Expert on parodontax. TUMS was driven by good in-market execution of TUMS Chewy Bites. Theraflu benefited from favorable comps versus the prior year. These were offset by a weaker allergy season, Smokers Health, and Centrum performance challenges. Overall, this resulted in revenue decline of 0.4% with pricing 0.2% and volume mix declining 0.6%.

The U S market has been more challenging than we expected as Brian mentioned, we saw a sequential slowdown in consumption from Q1 to Q2 from three 2% to minus <unk>, 4%.

Dawn Allen: This was largely driven by a deterioration in consumer confidence, retailer destocking, and channel shifting as consumers seek more value. Against this, we grew ahead of the market by 70 bps in the second quarter. Growth was driven by oral health innovation, expert recommendations, and successful activations such as Gum Expert on parodontax. TUMS was driven by good in-market execution of TUMS Chewy Bites, and Theraflu benefited from favorable comps versus the prior year. These were offset by a weaker allergy season, smokers' health, and Centrum performance challenges. Overall, this resulted in revenue decline of 0.4%, with pricing 0.2% and volume mix declining 0.6%. In North America, we delivered an adjusted operating margin of 20.7%, up 80 bps on an organic basis versus the prior year. In EMEA and LATAM, we delivered a good performance, sequentially improving our growth rate on Q1 and returning to volume growth.

This was largely driven by.

A deterioration in consumer confidence.

Retailer Destocking.

And channel shifting as consumers seek more value.

Again, we grew ahead of the market by 70 basis points in the second quarter.

Growth was driven by <unk>.

Oral health innovation expert recommendations and successful activations, such as gum expert on Paragon tax.

Terms was driven by good in market execution of tonnes chewy bites.

And theraflu benefited from favorable comps versus the prior year.

These were offset by a weaker allergy season, smokers house and Centrum performance challenges.

Overall this resulted in revenue decline of no, 0.4% with pricing note, 0.2% and volume mix declining <unk>, 6%.

Dawn: In North America, we delivered adjusted operating margin of 20.7%, up 80 basis points on an organic basis versus the prior year. In EMEA and LATAM, we delivered a good performance, sequentially improving our growth rate on Q1 and returning to volume growth. For the half, revenue grew 5.2% with price up 4.7% and volume mix up 0.5%. Growth was driven by innovation to drive premiumization, including the clinical platform in Sensodyne, Pronamel Kids, and Voltaren patches, and by continued strength across the pharmacy channel. Looking across the region, we saw resilient consumer confidence in Europe and a more challenging picture in LATAM, where the consumer environment has been weaker, particularly in Brazil and Mexico, due to a more uncertain geopolitical backdrop.

Dawn Allen: In North America, we delivered adjusted operating margin of 20.7%, up 80 basis points on an organic basis versus the prior year. In EMEA and LATAM, we delivered a good performance, sequentially improving our growth rate on Q1 and returning to volume growth. For the half, revenue grew 5.2% with price up 4.7% and volume mix up 0.5%. Growth was driven by innovation to drive premiumization, including the clinical platform in Sensodyne, Pronamel Kids, and Voltaren patches, and by continued strength across the pharmacy channel. Looking across the region, we saw resilient consumer confidence in Europe and a more challenging picture in LATAM, where the consumer environment has been weaker, particularly in Brazil and Mexico, due to a more uncertain geopolitical backdrop.

In North America, we delivered adjusted operating margin of 27% up 80 basis points on an organic basis versus the prior year.

In EMEA and Latam, we delivered a good performance sequentially, improving our growth rate on Q1, and returning to volume growth.

Dawn Allen: For the half, revenue grew 5.2%, with price up 4.7% and volume mix up 0.5%. Growth was driven by innovation to drive premiumization, including the clinical platform in Sensodyne, Pronamel Kids, and Voltaren patches, and by continued strength across the pharmacy channel. Looking across the region, we saw resilient consumer confidence in Europe and a more challenging picture in LATAM, where the consumer environment has been weaker, particularly in Brazil and Mexico due to a more uncertain geopolitical backdrop. In this region, we delivered an adjusted operating margin of 25.3%, up 160 bps organically versus the prior year. Finally, in Asia Pac, we saw an acceleration in growth in Q2 to 5.9%, with two-thirds of the growth coming from volume. We continue to drive category growth and broaden our reach to lower-income consumers. Revenue grew 5% for the half, 1.7% from price and 3.3% volume mix.

For the half revenue grew five 2% with price up four 7% and volume mix or no 0.5%.

Growth was driven by.

Innovation to drive premium is Asian, including the clinical platform in sensor dying programmable kits and Vo tower in patches.

And by continued strength across the pharmacy channel.

Looking across the region, we saw resilient consumer confidence in Europe, and a more challenging picture in Latam.

While the consumer environment has been weaker, particularly in Brazil, and Mexico due to a more uncertain geopolitical backdrop.

Dawn: In this region, we delivered adjusted operating margin of 25.3%, up 160 basis points organically versus the prior year. Finally, in Asia Pacific, we saw an acceleration in growth in Q2 to 5.9% with two-thirds of the growth coming from volume. We continue to drive category growth and broaden our reach to lower income consumers. Revenue grew 5% for the half, 1.7% from price, and 3.3% volume mix. India had close to double-digit growth in the half, driven by expanded distribution across rural communities, Sensodyne 20-rupee pack, Centrum Recharge innovations, and excellence in execution. We expect growth in India to accelerate in the second half from a continued focus on execution and an improved macro environment thanks to government stimulus.

Dawn Allen: In this region, we delivered adjusted operating margin of 25.3%, up 160 basis points organically versus the prior year. Finally, in Asia Pacific, we saw an acceleration in growth in Q2 to 5.9% with two-thirds of the growth coming from volume. We continue to drive category growth and broaden our reach to lower income consumers. Revenue grew 5% for the half, 1.7% from price, and 3.3% volume mix. India had close to double-digit growth in the half, driven by expanded distribution across rural communities, Sensodyne 20-rupee pack, Centrum Recharge innovations, and excellence in execution. We expect growth in India to accelerate in the second half from a continued focus on execution and an improved macro environment thanks to government stimulus.

In this region, we delivered adjusted operating margin of 25, 3%.

160 basis points organically versus the prior year.

Finally in Asia Pac we saw an acceleration in growth in Q2 to five 9% with two thirds of the growth coming from volume.

We continue to drive category growth and broaden our reach to lower income consumers.

Revenue grew 5% for the half.

One 7% from price and three 3% volume mix.

Dawn Allen: India had close to double-digit growth in the half, driven by expanded distribution across rural communities, Sensodyne 20 rupee pack, and Centrum Recharge innovations and excellence in execution. We expect growth in India to accelerate in the second half from a continued focus on execution and an improved macro environment, thanks to government stimulus. China also saw good mid-single-digit growth, with strength in oral health and VMS, underpinned by innovation and distribution build. Our e-commerce business is a particular highlight, which is over one-third of revenue and is growing high teens. We are working at pace to integrate the China OTC JV, where we are realizing the benefits of both flexible manufacturing and a more efficient route to market. Southeast Asia and Taiwan also performed well, with strength across Centrum, particularly in the Philippines and in DentureCare, where we are driving penetration.

India had close to double digit growth in the half driven by.

Expanded distribution across rural communities.

Sensor dying 'twenty rupee pack and centrum recharge innovations.

And excellence in execution.

We expect growth in India to accelerate in the second half.

From a continued focus on execution and an improved macro environment. Thanks to government stimulus.

Dawn: China also saw good mid-single digit growth with strength in oral health and VMS, underpinned by innovation and distribution build. Our e-commerce business is a particular highlight, which is over 1/3 of revenue and is growing high teens. We are working at pace to integrate the China OTC JV, where we are realizing the benefits of both flexible manufacturing and a more efficient route to market. Southeast Asia and Taiwan also performed well, with strength across Centrum, particularly in the Philippines and in denture care, where we are driving penetration. In Asia Pacific, we delivered adjusted operating margin of 23.3%, up 130 basis points organically versus the prior year. Let's now look at the second half of the income statement. Adjusted diluted EPS grew 2.2%.

Dawn Allen: China also saw good mid-single digit growth with strength in oral health and VMS, underpinned by innovation and distribution build. Our e-commerce business is a particular highlight, which is over 1/3 of revenue and is growing high teens. We are working at pace to integrate the China OTC JV, where we are realizing the benefits of both flexible manufacturing and a more efficient route to market. Southeast Asia and Taiwan also performed well, with strength across Centrum, particularly in the Philippines and in denture care, where we are driving penetration. In Asia Pacific, we delivered adjusted operating margin of 23.3%, up 130 basis points organically versus the prior year. Let's now look at the second half of the income statement. Adjusted diluted EPS grew 2.2%.

China also so good mid single digit growth with strength in oral health and Vms.

Underpinned by innovation and distribution build our E. Commerce business is a particular highlight which is over one third of revenue and is growing high teens.

We are working at pace to integrate the China OTC JV.

While we are realizing the benefits of both flexible manufacturing and a more efficient route to market.

Southeast Asia, and Taiwan also performed well.

With strength across centrum, particularly in the Philippines.

And in Denture care, where we aren't driving penetration.

Dawn Allen: In Asia Pac, we delivered an adjusted operating margin of 23.3%, up 130 basis points organically versus the prior year. Let's now look at the second half of the income statement. Adjusted diluted EPS grew 2.2%. In addition to the operating profit drivers I have already outlined, EPS growth also benefited from a lower net interest charge, driven by debt reduction and favorable foreign exchange on U.S. dollar denominated debt, lower non-controlling interest following our purchase of the China JV, and a lower share count following the repurchase of our shares over the last year. As a final point, our adjusted effective tax rate was 24.4%, in line with our guidance for the full year. Turning now to adjusting items, which were significantly lower than last year at £40 million.

In Asia Pac, we delivered adjusted operating margin of 23, 3%.

130 basis points organically versus the prior year.

Let's now look at the second half of the income statement.

Adjusted diluted EPS grew two 2%.

Dawn: In addition to the operating profit drivers I have already outlined, EPS growth also benefited from a lower net interest charge driven by debt reduction and favorable foreign exchange on US dollar denominated debt, lower non-controlling interest following our purchase of the China JV, and a lower share count following the repurchase of our shares over the last year. As a final point, our adjusted effective tax rate was 24.4% in line with our guidance for the full year. Turning now to adjusting items which were significantly lower than last year at GBP 40 million. The key items included a net amortization and impairment charge for intangible assets of GBP 26 million, restructuring costs of GBP 26 million relating to the GBP 300 million productivity program and the closure of the Maidenhead site.

Dawn Allen: In addition to the operating profit drivers I have already outlined, EPS growth also benefited from a lower net interest charge driven by debt reduction and favorable foreign exchange on US dollar denominated debt, lower non-controlling interest following our purchase of the China JV, and a lower share count following the repurchase of our shares over the last year. As a final point, our adjusted effective tax rate was 24.4% in line with our guidance for the full year. Turning now to adjusting items which were significantly lower than last year at GBP 40 million. The key items included a net amortization and impairment charge for intangible assets of GBP 26 million, restructuring costs of GBP 26 million relating to the GBP 300 million productivity program and the closure of the Maidenhead site.

In addition to the operating profit drivers I have already outlined EPS growth also benefited from.

Our lower net interest charge driven by debt reduction and favorable foreign exchange on U S dollar denominated debt.

Lower Noncontrolling interest following our purchase of the China JV.

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A lower share count following the repurchase of our shares over the last year.

As a final point, our adjusted effective tax rate was 24, 4% in line with our guidance for the full year.

Turning now to adjusting items, which was significantly lower than last year at 40 million pounds.

Dawn Allen: The key items included a net amortization and impairment charge for intangible assets of £26 million, restructuring costs of £26 million, relating to the £300 million productivity program and the closure of the Maidenhead site, and a £12 million credit, largely related to the recovery of the balance from legacy operations in LATAM. We have not yet incurred any of the one-time costs associated with the supply chain productivity program we shared at Capital Markets Day. Turning now to cash, Haleon plc is a highly cash-generative business. We delivered £734 million of free cash flow in the half, which, after stripping out the net proceeds from the divestment of ChapStick last year, was £184 million more than the prior year. At Capital Markets Day, we highlighted a significant opportunity in working capital and set a target of 30% reduction in our working capital cycle over the next five years.

The key items included.

Our net amortization and impairment charge for intangible assets of 26 million pounds.

Restructuring costs of 26 million pounds.

Relating to the 300 million pounds productivity program and the closure of the maiden had site.

Dawn: A GBP 12 million credit, largely related to the recovery of the balance from legacy operations in Latam. We have not yet incurred any of the one-time costs associated with the supply chain productivity program we shared at Capital Markets Day. Turning now to cash. Haleon is a highly cash-generative business. We delivered GBP 734 million of free cash flow in the half, which after stripping out the net proceeds from the divestment of ChapStick last year, was GBP 184 million more than the prior year. At Capital Markets Day, we highlighted a significant opportunity in working capital and set a target of 30% reduction in our working capital cycle over the next five years.

And a 12 million pound credit largely related to the recovery of the balance from legacy operations in Latam.

Dawn Allen: A GBP 12 million credit, largely related to the recovery of the balance from legacy operations in Latam. We have not yet incurred any of the one-time costs associated with the supply chain productivity program we shared at Capital Markets Day. Turning now to cash. Haleon is a highly cash-generative business. We delivered GBP 734 million of free cash flow in the half, which after stripping out the net proceeds from the divestment of ChapStick last year, was GBP 184 million more than the prior year. At Capital Markets Day, we highlighted a significant opportunity in working capital and set a target of 30% reduction in our working capital cycle over the next five years.

We have not yet incurred any of the onetime costs associated with the supply chain productivity program, we shared at capital markets day.

Turning now to cash pay.

Hey, Liana is a highly cash generative business, we delivered 734 million pounds of free cash flow in the half.

Which after stripping out the net proceeds from the divestment of Chapstick last year was 184 million pounds more than the prior year.

Our capital markets day, we highlighted a significant opportunity in working capital.

And set a target of 30% reduction in our working capital cycle over the next five years.

Dawn: We have made good progress versus last year with a 17-day reduction in our working capital cycle versus half one 2024 and flat versus the end of last year. This came from more efficient freight and improved operational efficiency in our plants. Other contributors to the improvement in cash flow were GBP 106 million lower restructuring costs and GBP 66 million in total from a combination of lower cash interest and dividends to our China JV partner. On CapEx, our intention is to spend on average 4% of sales over the next 3 to 5 years, as well as a shift in the nature of spend to be more weighted to growth and productivity compared to maintenance. In the half, CapEx increased from 2% to 2.4% of sales, with a higher weighting of spend towards growth and productivity. Moving on to leverage.

Dawn Allen: We have made good progress versus last year with a 17-day reduction in our working capital cycle versus half one 2024 and flat versus the end of last year. This came from more efficient freight and improved operational efficiency in our plants. Other contributors to the improvement in cash flow were GBP 106 million lower restructuring costs and GBP 66 million in total from a combination of lower cash interest and dividends to our China JV partner. On CapEx, our intention is to spend on average 4% of sales over the next 3 to 5 years, as well as a shift in the nature of spend to be more weighted to growth and productivity compared to maintenance. In the half, CapEx increased from 2% to 2.4% of sales, with a higher weighting of spend towards growth and productivity. Moving on to leverage.

Dawn Allen: We have made good progress versus last year, with a 17-day reduction in our working capital cycle versus half one 24, and flat versus the end of last year. This came from more efficient freight and improved operational efficiency in our plants. Other contributors to the improvement in cash flow were £106 million lower restructuring costs and £66 million in total from a combination of lower cash interest and dividends to our China JV partner. On CapEx, our intention is to spend on average 4% of sales over the next three to five years, as well as a shift in the nature of spend to be more weighted to growth and productivity compared to maintenance. In the half, CapEx increased from 2% to 2.4% of sales, with a higher weighting of spend towards growth and productivity.

We have made good progress versus last year.

With a 17 day reduction in our working capital cycle versus half one 'twenty four.

And flat versus the end of last year.

This came from more efficient freight and improved operational efficiency in our plants.

Other contributors to the improvement in cash flow were.

106 million pounds lower restructuring costs.

And 66 million pounds in total from a combination of lower cash interest and dividends to our China JV partner.

On Capex, our intention is to spend on average 4% of sales over the next three to five years.

As well as a shift in the nature of spend to be more weighted to growth and productivity compared to maintenance.

In the half Capex increased from 2% to two 4% of sales.

With a higher weighting of spend towards growth and productivity.

Dawn Allen: Moving on to leverage, net debt reduced by £187 million in the half, keeping leverage flat at 2.8 times net debt to adjusted EBITDA. This reduction was driven mainly by translational foreign exchange gain on our U.S. dollar bonds. Our free cash flow was invested in £174 million in acquiring the remaining 12% stake in the China joint venture, £370 million on share buybacks, and £415 million on dividends. We also repaid from cash the $1.75 billion bond that matured in March this year. Our next major maturity is the €850 million bond due in March 2026. As a reminder, around 75% of our bond debt is currently at a fixed rate of interest. We have a track record of disciplined capital allocation. Our priorities are focused on investing for growth, both on M&A and returning excess cash to shareholders.

Moving on to leverage.

Dawn: Net debt reduced by GBP 187 million in the half, keeping leverage flat at 2.8x net debt to adjusted EBITDA. This reduction was driven mainly by translational foreign exchange gain on our US dollar bonds. Our free cash flow was invested in GBP 174 million in acquiring the remaining 12% stake in the China joint venture, GBP 370 million on share buybacks, and GBP 450 million on dividends. We also repaid from cash the $1.75 billion bond that matured in March this year. Our next major maturity is the EUR 850 million bond due in March 2026. As a reminder, around 75% of our bond debt is currently at a fixed rate of interest. We have a track record of disciplined capital allocation.

Dawn Allen: Net debt reduced by GBP 187 million in the half, keeping leverage flat at 2.8x net debt to adjusted EBITDA. This reduction was driven mainly by translational foreign exchange gain on our US dollar bonds. Our free cash flow was invested in GBP 174 million in acquiring the remaining 12% stake in the China joint venture, GBP 370 million on share buybacks, and GBP 450 million on dividends. We also repaid from cash the $1.75 billion bond that matured in March this year. Our next major maturity is the EUR 850 million bond due in March 2026. As a reminder, around 75% of our bond debt is currently at a fixed rate of interest. We have a track record of disciplined capital allocation.

Net debt reduced by 187 million pounds in the half keeping leverage flat at two eight times net debt to adjusted EBITDA. This reduction was driven mainly by translational foreign exchange gain on our U S dollar bond.

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Our free cash flow was invested in.

174 million pounds in acquiring the remaining 12% stake in the China joint venture.

370 million pounds on share buybacks.

And 415 million pounds on dividends.

We also repaid from cash the 1.75 billion dollar bond that matured in March this year.

Our next major maturity is the 850 million Euro bond due in March 2026.

As a reminder, around 75% of iPhone that is currently at a fixed rate of interest.

We have a track record of disciplined capital allocation.

Dawn: Our priorities are focused on investing for growth, bolt-on M&A, and returning excess cash to shareholders. All of this is underpinned by our strong investment-grade balance sheet. In line with our policy to pay one-third of the prior year total dividend at interim, the board has declared an interim dividend of 2.2 pence per share, a 10% increase on the prior year. Now let me turn to our outlook for 2025. We are upgrading our profit guidance to high single-digit organic profit growth for the year, given our strong progress on productivity initiatives. In EMEA, LATAM, and Asia Pacific, we expect to see an improving trend in revenue in the second half, driven by innovation, distribution build, and macroeconomic improvement. Given the weakness in the US, we no longer anticipate an improvement in the second half.

Dawn Allen: Our priorities are focused on investing for growth, bolt-on M&A, and returning excess cash to shareholders. All of this is underpinned by our strong investment-grade balance sheet. In line with our policy to pay one-third of the prior year total dividend at interim, the board has declared an interim dividend of 2.2 pence per share, a 10% increase on the prior year. Now let me turn to our outlook for 2025. We are upgrading our profit guidance to high single-digit organic profit growth for the year, given our strong progress on productivity initiatives. In EMEA, LATAM, and Asia Pacific, we expect to see an improving trend in revenue in the second half, driven by innovation, distribution build, and macroeconomic improvement. Given the weakness in the US, we no longer anticipate an improvement in the second half.

Our priorities are focused on investing for growth bolt on M&A and returning excess cash to shareholders.

Dawn Allen: All of this is underpinned by our strong investment-grade balance sheet. In line with our policy to pay one-third of the prior year total dividend at interim, the board has declared an interim dividend of 2.2 pence per share, a 10% increase on the prior year. Now let me turn to our outlook for 2025. We are upgrading our profit guidance to high single-digit organic profit growth for the year, given our strong progress on productivity initiatives. In EMEA and LATAM and Asia Pac, we expect to see an improving trend in revenue in the second half, driven by innovation, distribution build, and macroeconomic improvement. Given the weakness in the U.S., we no longer anticipate an improvement in the second half. We therefore expect our full-year organic revenue growth to be around 3.5% for the year. In summary, we delivered strong operating profit and cash.

All of this is underpinned by a strong investment grade balance sheet.

In line with our policy to pay one third of the prior year total dividend at interim the board has declared an interim dividend of $2 two pence per share.

A 10% increase on the prior year.

Now, let me turn to our outlook for 2025.

We are upgrading our profit guidance to high single digit organic profit growth for the year, given our strong progress on productivity initiatives.

In EMEA in Latam and Asia Pac, we expect to see an improving trend in revenue in the second half driven by innovation distribution build and macro economic improvement.

Given the weakness in the U S. We no longer anticipate an improvement in the second half.

Dawn: We therefore expect our full year organic revenue growth to be around 3.5% for the year. In summary, we delivered strong operating profit and cash. We continue to build flexibility and agility in our PNL by unlocking productivity savings. This allows us to invest in A&P and R&D to drive growth. Overall, this will drive operating leverage, strong EPS growth and free cash flow generation. With that, I will hand back to Brian.

Dawn Allen: We therefore expect our full year organic revenue growth to be around 3.5% for the year. In summary, we delivered strong operating profit and cash. We continue to build flexibility and agility in our PNL by unlocking productivity savings. This allows us to invest in A&P and R&D to drive growth. Overall, this will drive operating leverage, strong EPS growth and free cash flow generation. With that, I will hand back to Brian.

We therefore expect our full year organic revenue growth to be around three 5% for the year.

So in summary, we delivered strong operating profit and cash.

Dawn Allen: We continue to build flexibility and agility in our P&L by unlocking productivity savings. This allows us to invest in AMP and R&D to drive growth. Overall, this will drive operating leverage, strong EPS growth, and free cash flow generation. With that, I will hand back to Brian.

We continue to build flexibility and agility in our P&L by unlocking productivity savings.

This allows us to invest in A&P and R&D to drive growth.

Overall, this will drive operating leverage strong EPS growth and free cash flow generation.

With that I will hand back to Brian.

Brian: Thank you, Dawn. To sum up, we've delivered good performance in EMEA and LATAM and Asia Pacific in the half. That was partially offset by a more challenging environment in the US, and we continue to make significant progress against our productivity agenda, driving strong profit growth. I remain confident in the opportunities we outlined at our Capital Markets Day and on our medium-term guidance of 4% to 6% annual organic revenue growth with high single-digit adjusted operating profit growth at constant currency. Thank you for your continued support and interest in Haleon.

Brian McNamara: Thank you, Dawn. To sum up, we've delivered good performance in EMEA and LATAM and Asia Pacific in the half. That was partially offset by a more challenging environment in the US, and we continue to make significant progress against our productivity agenda, driving strong profit growth. I remain confident in the opportunities we outlined at our Capital Markets Day and on our medium-term guidance of 4% to 6% annual organic revenue growth with high single-digit adjusted operating profit growth at constant currency. Thank you for your continued support and interest in Haleon.

Brian McNamara: Thank you, Dawn. To sum up, we have delivered good performance in EMEA and LATAM and Asia Pacific in the half. That was partially offset by a more challenging environment in the U.S. We continue to make significant progress against our productivity agenda, driving strong profit growth. I remain confident in the opportunities we outlined at our Capital Markets Day and on our medium-term guidance of 4% to 6% annual organic revenue growth, with high single-digit adjusted operating profit growth at cost incurrency. Thank you for your continued support and interest in Haleon.

Thank you dawn.

So to sum up.

We've delivered good performance in EMEA, and Latam and Asia Pacific in the half.

That was partially offset by a more challenging environment in the U S.

And we continue to make significant progress against our productivity agenda.

Driving strong profit growth.

I remain confident in the opportunities we outlined at our capital markets day.

And on our medium term guidance of 4% to 6% annual organic revenue growth.

With high single digit adjusted operating profit growth at constant currency.

Thank you for your continued support and interest in Hayley.

Okay.