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Issued: London, UK Global leader in consumer health set to be a newly independent company with focused strategy to deliver sustainable above-market growth and attractive returns to shareholders
Demerger and listing of Haleon expected in July 2022
New company to focus 100% on consumer health, with clear purpose to deliver better everyday health with humanity
Exceptional portfolio of category-leading brands includes, Sensodyne , Panadol , Advil , Voltaren Theraflu , Otrivin , and Centrum
Haleon expected to deliver annual organic sales growth of 4-6% in the medium term
Haleon expected to deliver moderate sustainable expansion of adjusted operating margin in the medium term
Attractive growth profile and strong cash generation of Haleon expected to support capital allocation priorities to invest in future growth and deliver sustainable returns to shareholders
Initial dividend expected to be at lower end of 30-50% pay-out ratio range (subject to Haleon Board approval)
Targeting net debt/adjusted EBITDA <3x by end 2024 (from up to 4x at demerger)
At an update to investors today, GSK will announce that the proposed listing of Haleon (the newly independent company to be formed following the demerger of the GSK Consumer Healthcare business) is expected in July 2022, and will provide detail on the strategy, outlook and plans for the new company.
Emma Walmsley, Chief Executive Officer, GSK said : “Today is an important milestone for GSK as we formally introduce Haleon to investors. It comes ahead of what promises to be the most significant corporate change for GSK in the last 20 years, to create two new growth companies that will positively impact the health of billions of people. Haleon has been built through a series of progressive strategic M&A and divestment moves taken in the last few years, creating a focused, global consumer healthcare business with an exceptional portfolio of brands. Through the demerger we will unlock the potential of both GSK and Haleon, and in today’s meeting will show why we believe Haleon will be a strong, highly successful growth-orientated company.”
Brian McNamara, Chief Executive Officer Designate, Haleon said: “We are excited to share our plans for Haleon and the incredible opportunity we have before us. Led by our purpose – to deliver better everyday health with humanity – Haleon is strongly positioned to play a vital role in a growing, more relevant sector than ever. Today, we will show investors how our world-class portfolio of brands, alongside our competitive capabilities and a compelling strategy to outperform, underpins our confidence in delivering annual organic sales growth of 4-6% in the medium term, and a sustainable financial performance that can drive continued investment in growth and deliver attractive returns to shareholders.”
Global leader focused on consumer health
Haleon has been created from a series of progressive strategic moves to develop the GSK Consumer Healthcare business. The business has been transformed through the successful integrations of the Novartis consumer health portfolio in 2015 and the Pfizer portfolio in 2019. This transformation has provided a platform to focus, scale and optimise many aspects of the business including divesting lower growth brands, implementing a new R&D/innovation model, rationalising the manufacturing footprint and optimising the supply chain, alongside continued investment in brands, innovation and capabilities.
This has created a leading global consumer healthcare business, which achieved £9.5 billion in sales during 2021. Led by a highly skilled management team with deep experience and a track record of success in consumer healthcare and FMCG, the business has a portfolio of world-class brands. It offers a compelling proposition that combines human understanding with trusted science.
Exceptional portfolio of category-leading brands
Haleon is the global leader in each of the major categories in which it operates – Therapeutic Oral Health; Vitamins, Minerals and Supplements; Pain Relief; Respiratory Health; and Digestive Health. The portfolio comprises global power brands such as Sensodyne , Panadol , Advil , Voltaren , Theraflu, Otrivin , and Centrum; and iconic, local strategic brands such as TUMS , ENO , Flonase , ChapStick and Emergen-C .
Human understanding with trusted science
Haleon has a suite of proprietary assets focused on generating deep human understanding to support brand innovation, engagement with experts and education of consumers. These include cutting-edge centres for shopper research, consumer knowledge, and social listening to generate new insights, identify future trends and rapidly test new concepts and claims.Alongside this, Haleon has deep technical and scientific expertise, with world-class regulatory and medical capabilities and trusted relationships with more than three million healthcare professionals worldwide. […]
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