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Highlights

  • Jefferies analyst David H. Hayes maintained a Buy rating on Haleon with a target price of AUD 9.00.

  • The target implies a potential 20.55% upside from the current share price of AUD 7.47.

  • Haleon reported half-year 2025 organic revenue growth of 3.2%, led by Oral Health, EMEA & LatAm, and Asia-Pacific.

Haleon Plc (LSE:HLN), the world’s largest pure-play consumer health company, has received a vote of confidence from Jefferies, with analyst David H. Hayes reaffirming a Buy rating on the stock. Hayes set a price target of AUD 9.00, representing a potential upside of more than 20% from the current level of AUD 7.47.

The endorsement follows Haleon’s release of its 2025 half-year results.

Regional Performance and Growth Drivers

Haleon delivered 3.2% organic revenue growth in the first half, driven by a combination of 2.4% price growth and 0.8% volume/mix improvement. Regional results highlighted the company’s global footprint, with EMEA & LatAm up 5.2% and Asia-Pacific up 5.0%, more than offsetting a 0.4% decline in North America, which continues to reflect a weaker U.S. consumer and retail environment.

The company’s Oral Health division was a standout, delivering 7.6% organic growth. Overall, 58% of the portfolio gained or maintained market share in H1.

Profitability and Margin Expansion

organic operating profit up 9.9% during the reported period and margin expanded by 140 basis points. Gross profit also increased by 5.7%, supported by productivity gains and disciplined investment in advertising, promotion, and R&D.

Adjusted operating profit margin stood at 22.7%, consistent with last year, while adjusted diluted EPS rose 2.2% to 9.2p.

Shareholder Returns and Cash Flow

Haleon reported free cash flow of £734 million, an increase of £184 million year-on-year (excluding divestment proceeds). This was driven by continued working capital improvements.

The company also advanced its capital allocation program, repurchasing 95.2 million ordinary shares for approximately £370 million as part of its £500 million buyback commitment. Additionally, Haleon acquired the remaining 12% equity interest in its China OTC joint venture for £174 million.

The board declared a 10% increase in the interim dividend to 2.2p per share.

Guidance

Looking ahead, Haleon expects FY2025 organic revenue growth of around 3.5% and anticipates high single-digit organic operating profit growth, supported by positive operating leverage.