Healthcare company Haleon has reported a double-digit hike in revenue and profits in the group’s first set of company results since it spun off from pharma giant GSK.
The company, which owns popular health products Sensodyne and Panadol, posted a 13.4% rise in its revenue to £5.2 billion in the first half of the year.
Its revenues were boosted by particularly strong sales across respiratory health products during the cold and flu season, the group reported.
Operating profits also grew by more than 22% year-on-year, totalling £900 million in the six months to June 30.
I am pleased that we delivered margin expansion in the first half despite significant cost inflation and absorption of standalone costs for the business
Brian McNamara, Haleon's chief executive
Haleon said that it is well positioned to navigate the current macroeconomic challenges through the second half of the year, including rising inflation and the potential impact of higher prices on consumer buying behaviour.
This is despite cost inflation soaring to 40% in the first half of the year, which the company managed to offset through forward buying and locking in the majority of its materials contracts for the year, it said.
However, the healthcare group said positive momentum continued at a slower rate into the third quarter as expected.
Haleon, which employs around 22,000 staff around the world, split from GlaxoSmithKline in July and floated on the London Stock Exchange in Europe’s biggest listing for more than a decade.
Brian McNamara, Haleon’s chief executive, said: “I am incredibly proud that in the first half Haleon successfully completed its separation from GSK and became an independent listed company.
“I am also pleased that we delivered margin expansion in the first half despite significant cost inflation and absorption of standalone costs for the business.
“Whilst navigating the current macro-economic challenges and uncertainties, positive momentum in our business has continued into the second half.
“This combined with the strength of the business reinforces our confidence that we are well positioned to deliver on guidance this year and over the medium term.”