Haleon organic operating profit grows 10.5% amid revenue headwinds

The Tip Desk · March 13, 2026 · 2 min read

The consumer health company reported organic revenue growth of 3.0% for 2025, though reported revenue declined 1.8% to £11,030m.

Haleon, a consumer health company focused on Oral Health, Pain Relief and Respiratory Health, reported organic operating profit growth of 10.5% for the year. This result exceeded the company's high single-digit guidance. Reported operating profit rose 9.3% to £2,412m.

Reported revenue declined 1.8% to £11,030m, while organic revenue grew 3.0%. The company said this organic growth was below medium-term expectations due to low consumer confidence in North America and a weak cold and flu season. Foreign exchange and net M&A reduced revenue by 2.8% and 2.0% respectively, with the latter reflecting 2024 disposals of the Nicotine Replacement Therapy business outside the US and ChapStick.

Profitability was supported by a 220bps increase in adjusted gross profit margin at constant currency. The company attributed this expansion to net revenue management, pricing to offset inflation, and a supply chain productivity programme. Haleon is targeting £800m in gross supply chain savings over five years by reducing SKUs, packaging and formulations by approximately 30%.

Adjusted operating profit margin increased 60bps at actual exchange rates to 22.9%. This growth was partly offset by a 30bps drag from foreign exchange and a 70bps drag from net M&A. The company increased its investment in the business, with advertising and promotional spend rising 7.5% at constant currency to 20.5% of revenue. Adjusted R&D spend also rose 7.7% at constant currency.

Cash generation remained strong with free cash flow of £1.9bn. The company reduced its leverage to 2.6x net debt/adjusted EBITDA, down from 2.8x in 2024. Haleon returned £1.1bn to shareholders during the year through £0.6bn in dividends and £0.5bn in share buybacks. In June, the company completed the acquisition of the remaining 12% stake in its China joint venture for approximately £0.2bn.

Looking ahead, Haleon expects annual organic revenue growth of 4–6% over the medium term. The company also expects dividends to grow at least in line with adjusted earnings over the same period. The Board has proposed a total dividend of 7.1p per ordinary share for 2025 and announced the allocation of £500m to share buybacks in 2026.