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Haleon PLC (GB:HLN)
LSE:HLN

Haleon PLC (HLN) AI Stock Analysis

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GB:HLN

Haleon PLC

(LSE:HLN)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
410.00 p
▲(9.92% Upside)
Action:DowngradedDate:02/26/26
The score is driven primarily by solid financial performance (consistent free cash flow and improving profitability) and a cautiously positive earnings outlook supported by margin gains and cost savings. This is tempered by weaker near-term technical momentum and only moderate valuation support.
Positive Factors
Consistent free cash flow generation
Haleon's steady OCF (~$2.1–2.3B) and FCF (~$1.7–2.0B) provide durable internal funding for reinvestment, debt reduction, buybacks and R&D. Reliable cash conversion supports strategic flexibility and lowers dependence on external financing over the medium term.
Gross margin & supply‑chain productivity gains
A ~220bps gross‑margin improvement driven by supply‑chain simplification is a structural uplift, with management embedding 50–80bps of ongoing productivity. These efficiency gains sustainably expand operating leverage and free cash flow without relying solely on price.
Strong brand portfolio — Oral Health leadership
Durable brand equity in Oral Health drives repeat purchases, pricing power and efficient A&P deployment. Sustained high growth for core brands underpins category leadership, higher ROI on marketing, and a defendable competitive position across retail and e‑commerce channels.
Negative Factors
Elevated leverage vs pre‑spin years
Although debt fell in 2025, leverage remains meaningfully above 2020–21 levels and assets have declined, reducing balance‑sheet headroom. Elevated leverage constrains capital allocation flexibility, increases interest and refinancing risk, and limits capacity for large M&A or cyclical shocks.
Persistent weak volume growth
Low multi‑year volume growth (~1%) signals reliance on pricing and mix rather than underlying unit expansion. If volumes don't recover, top‑line durability is impaired, promotional or private‑label pressures could erode margins, and medium‑term growth targets become harder to sustain.
Category & U.S. exposure to cyclical weakness
Reliance on seasonal categories (cold & flu) and exposure to U.S. and digestive categories vulnerable to private label create recurring volatility. Repeated weak seasons and category headwinds can depress volume and make consistent medium‑term organic growth more challenging.

Haleon PLC (HLN) vs. iShares MSCI United Kingdom ETF (EWC)

Haleon PLC Business Overview & Revenue Model

Company DescriptionHaleon plc engages in the research and development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides therapeutic oral health, pain relief, respiratory health, digestive health, and other products, as well as vitamins, minerals, and supplements. Its portfolio of brands include Panadol, Voltaren, Advil, Otrivin, Theraflu, Sensodyne, Polident, parodontax, and Centrum. The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was incorporated in 2021 and is headquartered in Brentford, the United Kingdom.
How the Company Makes MoneyHaleon generates revenue primarily through the sale of its consumer healthcare products across various categories, including oral health, pain relief, respiratory health, and dietary supplements. The company's revenue model is based on direct sales to retail partners, e-commerce platforms, and healthcare professionals. Key revenue streams include the sale of branded OTC medications and health products, which benefit from strong brand loyalty and recognition in the marketplace. Additionally, Haleon engages in strategic partnerships with retailers and distributors to expand its market reach and enhance product availability. The company also invests in marketing and advertising to maintain brand visibility and drive consumer demand, which further contributes to its earnings.

Haleon PLC Earnings Call Summary

Earnings Call Date:Feb 25, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational and margin progress (220 bps gross margin improvement), clear portfolio wins in Oral Health, meaningful cost-savings plans ($175–$200m) and strong emerging market execution (India, China). Offsetting this were persistent top-line and volume weaknesses, a weak cold & flu season (impacting the U.S. and other regions), channel inventory destocking and category-specific pressures (e.g., Nexium). Management signaled confidence in returning to medium-term growth targets but provided a conservative near-term organic guidance range (3%–5%) reflecting market uncertainty.
Q4-2025 Updates
Positive Updates
Organic Sales Growth Guidance
Guided organic sales growth of 3%–5% for FY2026, and reiterated medium-term ambition of 4%–6% despite FY2025 organic growth of 3%.
Gross Margin and Productivity Improvement
Gross margin improved by ~220 basis points in FY2025 driven by supply chain productivity initiatives and simplification measures.
Cost Savings from Reorganization
New operating model and flatter structure expected to deliver $175–$200 million in gross savings, enabling reinvestment in A&P, R&D and capabilities.
Strong Oral Health Performance
Oral Health (Sensodyne, Parodontax) delivered high-single-digit to double-digit growth in key markets; Sensodyne sustained a multi-year strong run and Parodontax grew in the mid-teens; half of the incremental A&P increase was directed to Oral Health.
Emerging Markets Momentum (India & China)
India delivered double-digit growth with successful low-price INR20 packs and rural expansion; China grew mid-single-digits with e‑commerce representing ~40% of business and Douyin sales growing >100%.
Increased Investment in Growth & R&D
A&P spend increased ~7.5% and R&D spend increased ~7.7% year-over-year; total A&P around 20.5% of sales with higher working media and digital allocation (60% digital of working media).
Supply Chain Simplification Wins
Examples include reducing Aquafresh Europe pack SKUs from 44 single-language packs to 18 multi-language packs and a 30% reduction in formulations at the Levice factory to increase capacity and reduce changeovers.
Operational Efficiency Indicators
Overall Equipment Effectiveness (OEE) improved by 7 points in FY2025 and the company projects 50–80 basis points of ongoing supply chain productivity in future years.
Negative Updates
U.S. Market Softness
U.S. sales were down approximately 0.5% in FY2025; company expects the U.S. cold and flu season to be below prior year in Q1 and recognized the U.S. remains a key area requiring improvement to hit medium-term targets.
Weak Cold & Flu Category
A softer-than-expected cold and flu season materially impacted FY2025 results (noted as a main driver of the slowdown), with two consecutive years of below-par cold & flu performance and Q1 of FY2026 expected to be below year-ago levels.
Volume Growth Underperformance
Volume growth averaged ~1% over the past three years, described as low vs. peers; management acknowledged the need to materially improve volume contribution vs. price to hit 4%–6% medium-term growth.
Category-Specific Challenges – Digestive Health
Digestive Health experienced a slowdown in 2025, with Nexium in the U.S. facing pressure from private label, contributing to weaker performance in that category.
Emerging Markets Q4 Slowdown & LatAm Challenges
Sequential slowdown in emerging markets in Q4 (notably LatAm/Brazil) and more challenging retail and macrobackdrop in parts of LatAm and Central Europe due to a soft cough/cold season.
Retailer Inventory & Channel Dynamics
Retailer destocking and lower retailer inventories in large U.S. channels (Walgreens/CVS) contributed to muted sell-through; uncertainty remains around future channel dynamics (including potential Walgreens ownership changes).
A&P vs. Volume Tension
Despite a ~7.5% increase in A&P and higher ROI and digital focus, the company still ran at negative volumes overall in 2025, raising questions about near-term top-line leverage outside Oral Health.
One-Off Productivity Ceiling
The 220 basis point gross margin improvement is unlikely to be fully repeatable annually; management expects to build only 50–80 basis points into future guidance for supply chain productivity.
Company Guidance
Management guided 2026 organic sales growth of 3–5% (with a medium‑term ambition of 4–6%), noting FY25 organic growth was 3% (U.S. -0.5%) and that Q1 cold & flu is expected to be below a year ago but the U.S. should return to growth in 2026; they cited 220 basis points of gross‑margin improvement in 2025, $175–200m of gross savings from the reorganisation, and the ability to deliver high‑single‑digit operating growth at constant currency while still investing for growth, with 50–80 bps of supply‑chain productivity built into guidance; A&P rose ~7.5% (to ~20.5% of sales) and R&D +7.7%, working media was +12%, ROI improved mid‑single digits with ~75% coverage, and emerging markets showed strong metrics (India double‑digit growth, China e‑commerce ~40% of sales, Douyin >100% growth).

Haleon PLC Financial Statement Overview

Summary
Resilient financial profile with improving profitability into 2025 (EBIT up to 2.5B; net income up to 1.7B) and consistently strong free cash flow (~1.7–2.0B). Balance sheet is stable with debt reduced in 2025, but leverage remains higher than 2020–2021 levels and assets have drifted down since 2022.
Income Statement
72
Positive
Revenue has been broadly stable over 2022–2025, with a small decline in 2024 followed by a return to growth in 2025. Profitability has improved meaningfully versus 2023–2024, with EBIT rising from 2.0B (2023) to 2.5B (2025) and net income increasing from 1.0B (2023) to 1.7B (2025). The key weakness is margin pressure versus earlier years (notably net profit margin was higher in 2021 than 2023–2024), suggesting earnings quality is improving recently but has not been consistently upward over the full period.
Balance Sheet
63
Positive
Leverage looks moderate in recent years, with debt-to-equity around ~0.57–0.64 in 2022–2024, and total debt declining in 2025 versus 2024 (8.6B vs 10.1B), which is a clear positive. Equity has been steady around ~16–17B since 2022, supporting balance-sheet stability. The main concern is that leverage is materially higher than 2020–2021 levels, and total assets have drifted down from 2022 to 2025, which can limit flexibility if operating conditions weaken.
Cash Flow
80
Positive
Cash generation is consistently solid: operating cash flow has been steady around ~2.1–2.3B from 2022–2025, and free cash flow has remained strong at ~1.7–2.0B. Free cash flow also compares well to net income in 2022–2024 (roughly ~0.84–0.86x), indicating earnings are supported by cash. A watch item is that cash conversion is not exceptionally high (operating cash flow relative to revenue is not provided directly, and the provided coverage figures are moderate), but overall the business shows durable free-cash-flow production.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue11.02B11.03B11.23B11.30B10.86B9.54B
Gross Profit6.81B7.14B6.82B6.75B6.73B5.95B
EBITDA2.79B2.83B2.68B2.67B2.68B2.21B
Net Income1.52B1.67B1.44B1.05B1.06B1.39B
Balance Sheet
Total Assets31.83B32.63B34.31B34.05B34.81B34.45B
Cash, Cash Equivalents and Short-Term Investments676.00M1.32B2.19B1.04B684.00M414.00M
Total Debt8.54B8.61B10.10B9.46B10.44B991.00M
Total Liabilities15.83B16.15B18.09B17.33B18.36B7.97B
Stockholders Equity15.94B16.43B16.17B16.61B16.33B26.36B
Cash Flow
Free Cash Flow931.00M2.02B1.98B1.76B1.74B1.06B
Operating Cash Flow1.03B2.34B2.30B2.10B2.06B1.36B
Investing Cash Flow-76.00M-580.00M528.00M-134.00M-8.78B-33.00M
Financing Cash Flow-2.52B-2.61B-1.54B-1.57B6.91B-1.24B

Haleon PLC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price373.00
Price Trends
50DMA
384.68
Negative
100DMA
373.88
Negative
200DMA
368.04
Positive
Market Momentum
MACD
-2.98
Positive
RSI
38.49
Neutral
STOCH
10.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HLN, the sentiment is Negative. The current price of 373 is below the 20-day moving average (MA) of 396.95, below the 50-day MA of 384.68, and above the 200-day MA of 368.04, indicating a neutral trend. The MACD of -2.98 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HLN.

Haleon PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
£33.23B20.159.35%1.51%-2.12%42.10%
65
Neutral
£83.61M-8.91
63
Neutral
£91.35M-1.10-396.71%93.48%51.18%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
48
Neutral
£28.39M-11.67-51.21%61.13%33.33%
45
Neutral
£728.24M-9.44227.10%-0.28%22.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HLN
Haleon PLC
373.00
-9.24
-2.42%
GB:AGY
Allergy Therapeutics
11.50
4.70
69.12%
GB:PXS
Provexis
1.10
0.61
124.49%
GB:STX
Shield Therapeutics
8.50
5.45
178.69%
GB:VLG
Venture Life
68.75
27.75
67.68%
GB:BXP
Beximco Pharmaceuticals Limited Sponsored GDR RegS
42.50
4.50
11.84%

Haleon PLC Corporate Events

DividendsFinancial Disclosures
Haleon lifts 2025 dividend on strong cash generation and earnings growth
Positive
Feb 25, 2026

Haleon plc, the consumer health group behind brands such as Sensodyne, Panadol and Advil, operates globally across oral care, pain relief, vitamins and other everyday health categories, targeting mass-market demand for over-the-counter products. The company leverages its scientific heritage and broad brand portfolio to defend share in key consumer health segments worldwide.

Haleon has published its preliminary full-year 2025 results and proposed a total dividend of 7.1p per share, equivalent to about 38% of adjusted earnings, underscoring strong free cash flow and organic operating profit growth. The board signalled confidence in future performance by indicating it expects to grow the ordinary dividend at least in line with adjusted earnings, a move likely to reassure income-focused investors ahead of a detailed analyst presentation and Q&A on the results.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £4.20 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Regulatory Filings and Compliance
Haleon executives acquire shares under company reward plan
Neutral
Feb 12, 2026

Haleon plc has disclosed share transactions by senior executives Adrian Morris, General Counsel, and Jonathan Workman, President Europe, under the company’s Share Reward Plan. Both executives acquired partnership shares and received matching shares in Haleon ordinary stock on 10 February 2026 at a market price of £3.956 per share, with trades executed on the London Stock Exchange.

The reported dealings, though small in volume, underscore ongoing alignment of key management’s interests with shareholders through equity-based incentives. The notification fulfills UK Market Abuse Regulation requirements on transparency of dealings by persons discharging managerial responsibilities, providing investors with visibility into insider participation in Haleon’s share schemes.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £4.55 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Regulatory Filings and Compliance
Haleon Confirms Voting Share Capital and Denominator for FCA Disclosure Rules
Neutral
Feb 2, 2026

Haleon plc has confirmed that as of 31 January 2026 it has 8,952,353,648 issued ordinary shares of £0.01 each, of which 45,557,120 are held in treasury, leaving 8,906,796,528 ordinary shares in issue with voting rights. The company stated that this voting share count should be used by shareholders and other market participants as the reference denominator for assessing disclosure obligations under the UK Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, providing clarity for investors on Haleon’s capital and voting structure.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £4.55 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Executive/Board Changes
Haleon CFO Dawn Allen to Chair ITV’s Audit & Risk Committee
Positive
Jan 21, 2026

Haleon plc announced that its Chief Financial Officer, Dawn Allen, has been appointed Chair of the Audit & Risk Committee of ITV plc, effective 5 March 2026. Allen, who has served as a Non-Executive Director and member of ITV’s Audit & Risk Committee since October 2023, will now take on a more prominent governance role at the broadcaster, underscoring the depth of financial and risk-management experience within Haleon’s senior leadership team and potentially strengthening cross-industry ties between consumer health and media.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £430.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Haleon Overhauls Operating Model to Accelerate Consumer Health Growth
Positive
Jan 8, 2026

Haleon plc has announced a major evolution of its operating model to support its “Win as One” strategy, aiming to boost growth, productivity and organisational agility by mid-2026. The company is creating a new Chief Growth Officer role to consolidate its category, marketing, strategy and commercial excellence activities, and a Chief Transformation Officer to oversee extensive changes in business processes, operating structures and technology. In parallel, Haleon will reorganise its geographic structure into six Operating Units, splitting its current EMEA & LatAm region into separate Latin America, Middle East and Africa, and Europe units, while elevating India Subcontinent to its own unit alongside existing North America and Asia Pacific operations. All Operating Unit presidents, together with the new CGO and CTO, will sit on the executive committee and report to CEO Brian McNamara, reflecting a push toward a simpler, more regionally focused and innovation-driven organisation. The company plans to provide further detail with its full-year results in February 2026, and the changes are expected to sharpen execution in key markets and better leverage Haleon’s global brand portfolio, with implications for how it competes in the global consumer health sector.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £440.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Haleon Executives Acquire Shares Under Company Reward Plan
Neutral
Jan 6, 2026

Haleon plc has disclosed share transactions by senior executives in line with UK Market Abuse Regulation requirements, confirming that General Counsel Adrian Morris and Chief Marketing Officer Tamara Rogers each acquired 34 partnership shares and received 34 matching shares under the company’s Share Reward Plan. The transactions, conducted on 5 January 2026 on the London Stock Exchange, reinforce equity-based alignment between key management and shareholders, signalling continued use of share-based incentives to tie leadership remuneration to the company’s long-term performance.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £440.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Regulatory Filings and Compliance
Haleon Updates Share Capital and Voting Rights Total
Neutral
Jan 2, 2026

Haleon plc has confirmed that as of 31 December 2025 it has 8,952,353,648 ordinary shares in issue, of which 45,745,646 are held in treasury, leaving 8,906,608,002 ordinary shares carrying voting rights. This updated share capital and voting rights figure provides the reference denominator for investors and other stakeholders when assessing whether they must disclose holdings or changes in positions under UK financial disclosure and transparency regulations.

The most recent analyst rating on (GB:HLN) stock is a Buy with a £420.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Haleon PLC Announces Leadership Changes in Board and Committees
Neutral
Dec 15, 2025

Haleon PLC has announced significant changes in its board and committee leadership, with Alan Stewart set to become the Senior Independent Director, succeeding Vindi Banga, who will assume the role of Chair effective January 1, 2026. These changes are aligned with the UK Corporate Governance Code 2024, and Vindi Banga’s remuneration as Chair will be £757,103 per annum, as previously disclosed. These leadership adjustments are expected to influence Haleon’s strategic direction and governance, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (GB:HLN) stock is a Hold with a £370.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Regulatory Filings and Compliance
Haleon PLC Discloses Managerial Share Transactions
Neutral
Dec 10, 2025

Haleon PLC announced the notification and public disclosure of transactions by its managerial staff as per UK Market Abuse Regulation. The transactions involved the acquisition of partnership shares and awarding of matching shares under the company’s Share Reward Plan, impacting the company’s stock management and potentially influencing investor perceptions.

The most recent analyst rating on (GB:HLN) stock is a Hold with a £370.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Regulatory Filings and Compliance
Haleon PLC Updates on Total Voting Rights and Share Capital
Neutral
Dec 1, 2025

Haleon PLC announced that as of November 30, 2025, it has issued a total of 8,952,353,648 ordinary shares, with 45,882,158 held as treasury shares. This results in 8,906,471,490 shares with voting rights, a figure crucial for shareholders and stakeholders for notification obligations under the FCA’s rules. This announcement is significant for stakeholders as it provides clarity on voting rights and helps in regulatory compliance.

The most recent analyst rating on (GB:HLN) stock is a Sell with a £335.00 price target. To see the full list of analyst forecasts on Haleon PLC stock, see the GB:HLN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 26, 2026