May 1 (Reuters) – Consumer healthcare company Haleon reported first-quarter revenue slightly below market estimates on Wednesday, due to retailer destocking in U.S. and cooling demand for some of its medicines after a surge last year.
The maker of popular household products such as Sensodyne toothpaste and pain-reliever Panadol, had earlier said that the first three months of 2024 would be impacted by a softer cold and flu season and a slowdown in painkiller Advil’s sales in Canada, following a surge in demand last year.
Haleon’s quarterly sales growth is impacted as demand wanes for medicines like Contac and Fenbid. These products saw a surge last year in China after lockdown restrictions eased.
Revenues stood at 2.92 billion pounds ($3.64 billion) for the quarter ended March 31, slightly missing expectations of 2.93 billion pounds, according to a company-compiled consensus.
On a reported basis, revenue was down 2.2% on last year.
Shares in the FTSE 100 group fell 1.8% in early trading, to become one of the top losers on the blue-chip index. The stock has risen about 5% this year as of Tuesday’s close.
Haleon, formed from assets of GSK and Pfizer, is the largest standalone consumer health company worldwide. It offers non-prescription drugs, vitamins, and oral care products.
Haleon’s tepid sales reflect changing consumer preferences and market trends. As demand for certain products cools off, the company must adapt its strategy to remain competitive.
Moreover, Haleon’s response to tepid sales involves reevaluating its product portfolio and marketing strategies. By identifying emerging trends and consumer needs, the company can realign its offerings to meet evolving demands.
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