Haleon H1 profits grow despite revenue contraction

Consumer healthcare business Haleon said on Thursday that profits had grown in the six months ended 30 June, driven by solid H1 sales of its vitamins and oral health products.

Haleon said adjusted operating profits had grown 11% to £1.29bn despite also reporting an 8% drop in interim revenue to £5.69bn. Organic revenue, on the other hand, grew 3.5%.

The London-listed firm said its improved profit showing was principally a result of lower cost inflation and productivity savings, as well as the closure of its Maidenhead site and continued "strong" momentum in oral health and vitamins, minerals and supplements.

Chief executive Brian McNamara said: "Haleon reported a good first half, with solid organic revenue growth and strong organic operating profit growth, demonstrating that our strategy is delivering.

"Looking ahead, we are well positioned to deliver on our full year organic revenue growth guidance and now expect high-single digit organic profit growth."

As of 1010 BST, Haleon shares were up 1.72% at 355.60p.

Reporting by Iain Gilbert at Sharecast.com