Haleon plc (NYSE:HLN) Q4 2023 Earnings Call Transcript
Haleon plc (NYSE:HLN) Q4 2023 Earnings Call Transcript February 29, 2024
Haleon plc misses on earnings expectations. Reported EPS is $6.54 EPS, expectations were $10.27. HLN isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Sonya Ghobrial: Good morning everyone. Thanks very much for joining us for our Full Year Results Q&A. Hopefully by now you've had time to look at our presentation as well as the press release and watch the video in the Investors section of our Haleon website. As usual, I'm joined by Brian McNamara, our CEO; and Tobias Hestler, CFO. So, with that we'd like to get started with Q&A and hand over to the first question. Thanks.
Operator: The first question comes from the line of Rashad Kawan Morgan Stanley. Please go ahead.
Rashad Kawan: Hey guys, good morning and thanks for taking my question. Congrats on the results. Two for me please. The first one in terms of absolute margin developments, you're calling out 3% transactional FX impact another 3% from M&A. so that's about a £150 million headwind. I think you likely get about £100 million from cost savings to partly offset that some more from kind of operating leverage. So, you've taken some pricing obviously in the back half of last year. Can you just talk about how you expect gross margin to develop over the year? How much of the £100 million in savings you plan on reinvesting et cetera? Just trying to get a sense for the margin evolution over the year? And then my second question just on the shape of the P&L for this year.
You've given guidance on Q1. But how should we think about the different moving parts over the year in terms of price mix and volume again you're still benefiting from some carryover pricing so do you expect growth to be priced like again? Do you plan on taking more pricing? Any color there is helpful. Thank you very much.
Brian McNamara: Okay. Thanks Rashad. Tobias I'll pass that to you.
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