Sensodyne maker Haleon slips as sales growth concerns overshadow profit beat

By Raechel Thankam Job and Richa Naidu

July 30 (Reuters) - Sluggish European request and anemic respiratory income raised doubts connected Thursday astir whether Haleon tin ‌meet its income targets, sending shares successful the user wellness institution little contempt ‌better-than-expected first-half profit.

The British shaper of Theraflu and Flonase acold medicines and Sensodyne toothpaste reported first-half integrated ​revenue maturation of 2.6%, successful enactment with forecasts, but meaning a stronger 2nd fractional is needed to deed its medium-term people of 4% to 6% growth.

Amid cautious user spending, Haleon has been expanding organisation and improving support positioning successful the United States, its largest ‌market. That helped North American ⁠organic gross maturation scope 3.1% successful the 2nd quarter, up of expectations.

However, maturation successful Europe was astir flat, portion respiratory income fell ⁠6.5%, a steeper diminution than the 3.4% driblet successful the archetypal quarter.

Shares had fallen arsenic overmuch arsenic 3.3% by 1230 GMT.

STRONGER SECOND HALF

"We're going to person a stronger 2nd fractional than ​first ​half, and we're assured successful that," CEO Brian ​McNamara told analysts, adding that maturation ‌would beryllium driven by immoderate emerging markets and a betterment successful request for cough-and-cold products.

A anemic flu season, peculiarly successful North America, Europe and China, has weighed connected the sector.

Haleon's first-half adjusted operating nett of £1.36 cardinal ($1.81 billion) topped expectations of £1.32 cardinal successful a company-compiled poll.

Still, Jefferies analysts said: "This is not rather bully enough, we think," arguing ‌that stronger underlying income maturation was needed.

Despite efforts ​to power costs, higher freight expenses linked to the ​Iran warfare person weighed connected Haleon. ​The institution besides reported declines successful markets specified arsenic Dubai arsenic ‌the struggle dampened user sentiment.

Finance main ​Dawn Allen said costs ​would emergence successful the 2nd fractional arsenic fixed-price contracts and hedging arrangements expire, but McNamara said Haleon could sorb the summation without raising prices.

"We person the ​gross borderline betterment that we're ‌able to sorb those (costs) without needing to bash thing astir pricing to ​cover for it," helium told Reuters.

($1 = £0.7500)

(Reporting by Raechel Thankam Job successful Bengaluru. ​Editing by Sherry Jacob-Phillips and Mark Potter)