Haleon Plc Q4 FY2024 earnings call

• Innovation is driving category growth and share gains across categories, e.g., Otrivin Nasal Mist, Centrum products, Sensodyne Kids.
• Route to market investments: Investing in India's sales force and China joint venture to enhance distribution.
• Increased A&P investment by 10.2% last year, continuing to invest in expert coverage and samples.
• Eroxon launch in October is below initial expectations but incorporated into the 4%-6% guidance.
• Oral Health division performing well with Clinical White and Clinical Repair platforms, launching in more markets, and strong growth in brands like paradontax and Denture Care.

No detailed financial performance in absolute terms and revenue contribution for product segments is provided in the transcript.

• Confident in 4% to 6% growth for the full year, with Q1 slow start due to inventory dynamics in drug retailers and US market conditions.
• Innovation launches this year underpin confidence in underlying business performance.
• Inventory dynamic related to drug retailers impacting Q1, but full year guidance remains maintained.

• Inventory dynamics in drug retailers affecting Q1 performance.
• Currency fluctuations impacting top and bottom lines, with emerging markets experiencing higher inflation and devaluation.
• Eroxon startup below initial expectations, though incorporated into the full year guidance.

Q: Performance skewed to second half, soft start in Q1, sustainability of Oral Health division A: Q1 slow start due to inventory and US market, innovation and route to market investments underpin second half confidence, Oral Health strong with Clinical platform Q: FX headwind, balance sheet, Eroxon, M&A A: Currency fluctuations due to geographical diversification, balance sheet has headroom for bolt-on M&A, Eroxon launch below expectations but in guidance Q: VMS category, inventory revaluation A: VMS category back to expected levels outside seasonality, inventory revaluation baked into guidance, impact minimal moving forward Q: U.S. retail landscape, working capital A: Some U.S. retailers struggling with cash, working capital improvement opportunity through demand planning, supply chain optimization Q: China JV, M&A, innovation A: China JV ownership change brings efficiencies, M&A focused on bolt-on strategic and financial sense opportunities, innovation driving success in Oral Health