Haleon’s resilience and brand power shine through in Q2
Last updated: 10:00 01 Aug 2025 EDT, First published: 09:59 01 Aug 2025 EDT
Barclays has repeated its 'overweight' call and 430p price target for Haleon PLC (LSE:HLN, NYSE:HLN) following a solid set of second-quarter results.
In a note issued on Friday, it said that the consumer health group continues to deliver organic revenue growth ahead of expectations.
Despite the headwinds from inflation, Haleon’s core brands in oral health and pain relief, think Sensodyne and Panadol, are standing out.
The bank highlights that stronger pricing is now feeding through, helping to cushion rising input costs.
Margins are improving as well, with adjusted operating margin up year on year.
Management has reiterated its confidence in delivering further margin gains in the second half, a point that Barclays sees as important for the investment case.
Free cash flow was also ahead of consensus, which gives Haleon more firepower to continue reducing debt.
Barclays also praises the group’s ongoing innovation and recent launches in vitamins and supplements, which are providing incremental growth.
The note sees Haleon’s “resilience and steady execution” as making it a core pick among European consumer staples, especially as the shares still trade at a discount to peers on several key measures.
