Haleon (LSE:HLN) reported revenue of £5.60 billion for the six months ended 30 June, up 2.2% on a reported basis and 2.6% on an organic basis versus the same period in 2025.
The consumer health group, whose brands include Sensodyne, Panadol and Voltaren, said adjusted operating profit rose 8.2% at constant currency to £1.36 billion, with adjusted operating margin up 120 basis points to 24.3%.
Reported operating profit fell 2.6% to £1.17 billion, hit by £169 million of restructuring costs tied to the operating model overhaul announced in January.
Adjusted diluted earnings per share rose 12% to 10.3p, helped by lower net finance costs and a reduced share count following buybacks.
Oral Health was the standout division, up 7.3% organically, while Respiratory Health declined 4.7% on a weak cold and flu season.
In terms of the geographic breakdown, North America accelerated to 3.1% organic growth in the second quarter from 1.0% in the first, and emerging markets grew 5.2%, led by double-digit gains in India.
Free cash flow reached £769 million, and net debt stood at £7.5 billion, representing leverage of 2.5 times adjusted EBITDA, in line with medium-term targets. The board declared an interim dividend of 2.4p per share, up 9% year-on-year, in line with its policy of paying a third of the prior year's total dividend.
"We delivered a good first half performance in what remains a challenging consumer environment, with sequential improvement in Q2 and a more balanced price and volume/mix," said chief executive Brian McNamara.
Haleon reiterated full-year guidance for organic revenue growth of 3-5% and high single-digit adjusted operating profit growth at constant currency, ahead of its next scheduled update, a third-quarter trading statement on 29 October.
News Intelligence what this means for the company
Haleon delivered first-half organic revenue growth of 2.6% with margin expansion driving a 12% rise in adjusted EPS, and raised its interim dividend 9% to 2.4p per share. The company reiterated full-year guidance for 3–5% organic revenue growth and high single-digit adjusted operating profit growth, signalling confidence despite a weak cold and flu season that dragged Respiratory Health down 4.7%.
Margin gains and cost discipline (adjusted operating margin up 120 basis points to 24.3%) are offsetting modest top-line momentum in a challenging consumer environment. Net debt of £7.5 billion at 2.5x adjusted EBITDA remains in line with medium-term targets, and the dividend increase reflects confidence in cash generation, but the 2.6% organic growth sits at the lower end of full-year guidance and signals no material acceleration.
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