Latest news with #ChrisBeckett
Reuters
27-02-2025
- Business
- Reuters
Sensodyne maker Haleon says 2025 revenue growth skewed to second half
Summary Companies 2025 organic revenue expected to grow 4% to 6% U.S. tariffs impact expected to be 'relatively low' - CEO CEO confident of meeting outlook, even with any tariff hit Feb 27 (Reuters) - British consumer healthcare group Haleon (HLN.L), opens new tab on Thursday said 2025 revenue and profit growth would be weighted to the second half of the year, overshadowing a strong end to 2024 and sending its shares down by more than 3%. The company, which makes Sensodyne toothpaste, ENO antacids and Centrum multivitamins, projected organic revenue would grow between 4% and 6% for the year, compared with a company-compiled consensus of 5.3%. "We are well positioned to drive organic revenue growth within our medium-term guidance range, with strong organic profit growth in 2025," CEO Brian McNamara said. Slowing demand for cold and cough medicines after the pandemic has weighed on consumer healthcare companies, and Haleon is working on clearing stocks of those products which typically sell more in the colder months. Its shares were down 2.9% at 384 pence by 1155 GMT. The stock had gained around 20% since its spin-off from GSK (GSK.L), opens new tab in 2022. "The stock has moved quite a way since it floated, so the reaction is understandable, but longer term this remains a good quality business with good brands," Quilter Cheviot's Chris Beckett said. A rising consumer focus on wellness is boosting sales at Haleon's multivitamins and oral hygiene products divisions, where revenues rose by 7.6% and 9.6%, respectively, on an organic basis. Still, companies globally are scrambling to adapt to growing trade tensions after the U.S. administration imposed a raft of tariffs on imports from China, Mexico and Canada, and soon possibly from the European Union. Any potential impact on Haleon is expected to be "relatively low", and the company is monitoring the situation and working on potential mitigations, CEO McNamara told Reuters. "We still believe we can deliver on (2025) guidance, even if there is an impact from tariffs." He added that most of Haleon's U.S. supplies were produced domestically, and that the company had "very little to no" exposure to China and Mexico, but had a plant in Montreal and some raw materials were sourced from outside the U.S. North America accounted for about 36% of Haleon's 2024 revenue, which along with adjusted operating profit, was in line with expectations.
The Independent
13-02-2025
- Business
- The Independent
British American Tobacco sales fall as ‘illicit single-use' vapes hamper trading
British American Tobacco (BAT) shares plunged on Thursday after it reported underwhelming vape sales in the US and forecast a slowdown across the smoking industry this year. The maker of Camel and Lucky Strike cigarettes made 0.8% less in 2024 vape sales than the previous year in its key American market. So-called 'new category' products like vapes and oral tobacco have been touted as the future of the sector, and BAT has said it wants to be a 'predominantly smokeless' business by 2035. But the 'growing presence of illicit single-use vapour products' hampered its ability to sell more of its own vapes last year. Shares in the London-listed company fell as much 9% on Thursday. Russ Mould, an analyst at AJ Bell, said the smokeless pledge is 'all very well… but it does beg the question of what's going to replace the revenue and cash flow provided by selling cigarettes'. Last year, vapes and other new product lines contributed less than one-tenth, at just £249 million, of BAT's £2.7 billion profit. In the relatively small UK market, meanwhile, the company said vape sales continued to grow. Meanwhile, its US cigarette sales plunged 10.1%, as a fall in consumer spending pushed more people to buy discount products, rather than BAT's premium ranges. Chris Beckett, an analyst at investment firm Quilter Cheviot said: 'Consumer companies are stuck in somewhat of a difficult environment just now. ' Consumers simply aren't spending as they were in the aftermath of the pandemic,' he said. Turnover decreased by 5% to £25.9 billion at the tobacco giant, while it expects that to grow by 1% in 2025. Chief executive Tadeu Marroco said: 'We are making good progress and while there is still more to do, I am certain that the investment actions taken in 2024 are the right way forward for BAT.'
