Advil Maker Haleon Expects Higher 2024 Revenue After Strong 2023 Earnings, Stock Soars
Portfolio Pulse from Vandana Singh
Haleon Plc (NYSE:HLN) reported a 4.1% Y/Y increase in FY 2023 revenues to £11.3 billion, missing consensus estimates. Organic revenue grew by 8.0%, with adjusted operating profit up 10.4% in constant currency. The company announced a £500 million share buyback for 2024 and expects organic revenue growth of 4%-6% for the year. Disposals of Lamisil and ChapStick are expected to dilute FY 2024 revenue and profit by 1% and 3%, respectively. HLN shares rose 5.71% to $8.52.
February 29, 2024 | 5:45 pm
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POSITIVE IMPACT
Haleon Plc reported a 4.1% increase in FY 2023 revenues, missing consensus estimates but announced a £500 million share buyback for 2024 and expects 4%-6% organic revenue growth. Shares rose 5.71%.
Despite missing revenue estimates, the announcement of a significant share buyback program and positive growth outlook for 2024 likely contributed to the positive investor sentiment, driving the stock price up.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
GSK plc, from which Haleon Plc was spun out, is indirectly affected by Haleon's financial performance and strategic decisions.
As the former parent company of Haleon, GSK's stock might see indirect effects due to investor perception and potential financial implications from Haleon's performance, though the direct impact is less clear.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50