Haleon updates financial reporting categories and provides restated revenue figures

Haleon plc (HLN) announced a new financial reporting structure, effective with its H1 2025 results, segmenting its operations into six distinct categories to enhance transparency for investors. The company provided restated 2023 and 2024 financials under this framework, revealing 2024 total revenue of £11,233 million with 5.0% organic growth. This granular data highlights varied segment performance, including strong organic growth in Oral Health (9.6%) and Therapeutic Skin Health (9.8%), alongside weaker organic growth in Pain Relief (0.1%) and reported declines in Respiratory Health and Therapeutic Skin Health, enabling more precise evaluation of its diverse portfolio.

Analysis

Haleon plc is enhancing investor transparency by restructuring its financial reporting into six distinct business categories, effective from its H1 2025 results. The company has provided restated financials for 2023 and 2024, which reveal a nuanced performance picture. For 2024, total revenue was £11,233 million, with solid organic growth of 5.0% but a slight reported revenue decline of -0.6%, indicating headwinds likely from currency effects or portfolio changes. This represents a deceleration from 2023's 8.0% organic and 4.1% reported growth. The new segmentation highlights significant performance disparities: Oral Health (£3,312M revenue) and Therapeutic Skin Health (£510M revenue) are key growth engines with 9.6% and 9.8% organic growth, respectively. In contrast, the large Pain Relief segment (£2,564M revenue) is stagnant with only 0.1% organic growth, while Respiratory Health (£2,122M revenue) is also soft at 1.0% organic growth. The Therapeutic Skin Health segment's stark -17.5% reported revenue decline, despite its strong organic performance, underscores the material impact of non-operational factors on specific parts of the business.

Key Decisions for Investors

• Investors should update their financial models to reflect the new six-segment structure, allowing for a more precise sum-of-the-parts valuation that isolates high-growth areas like Oral Health from underperforming ones like Pain Relief.
• It is critical to scrutinize the significant divergence between organic and reported growth, particularly the -17.5% reported decline in Therapeutic Skin Health, to understand the impact of currency or divestitures on future earnings.
• Monitor management's strategic plans for the nearly stagnant Pain Relief segment (0.1% organic growth) and soft Respiratory Health unit (1.0% organic growth), as performance in these large categories is a considerable drag on the company's overall growth profile.