Panadol maker Haleon forecast 3% to 5% growth in 2026 organic revenue, shy of its medium-term target as softer demand in its largest market, the US, weighed on sales.
The British healthcare group, which also produces products like Sensodyne toothpaste, posted fourth-quarter organic revenue growth of 2.1%, slower than the previous quarter and below some analysts’ estimates, hurt by a mild cold and flu season in key markets. Organic revenues exclude currency moves and recent deals.
Haleon employs 1,700 people across four locations in Ireland. Its facility in Dungarvan is the global home of Panadol, where 6.5 billion tablets are produced each year.
In has also been dealing with weak US consumer spending and rising competition that steered shoppers towards cheaper alternatives, especially in its Smokers’ Health range, where sales fell by double digits in 2025.
Its 2026 outlook, below analysts’ consensus forecast of 4.4% growth, sent its shares as much as 6% lower as analysts questioned management’s ability to hit longer-term targets.
“We feel confident the US will grow this year, and by 2027 we’ll be back to our medium-term growth range (of 4% to 6%),” CEO Brian McNamara told Reuters, adding that benefits from leadership changes in the region and distribution resets will come through in the second quarter.
McNamara said Haleon will prioritise market share and volumes over further US price increases this year. Fourth-quarter organic revenue in North America fell 1%, as cautious US consumers cut back on discretionary health purchases amid “concerns around the labour market and inflation”, the company said.
“Many (US) households feel financially stretched, and that pressure is now showing up even in over-the-counter medicines,” said Chris Beckett, analyst at Quilter Cheviot, which holds a small stake in Haleon. Increased promotional activity by rivals hit multivitamin sales, the company said.
Haleon announced a £500m share buyback for 2026, betting that cost cuts and margin improvements will support “high-single-digit” profit growth.
