Sensodyne maker Haleon forecasts below-target 2026 growth on weak demand in US

By Raechel Thankam Job

Feb 25 (Reuters) – British consumer healthcare group Haleon on Wednesday forecast 3% to 5% growth in 2026 organic revenue, shy of its medium-term target ​as softer demand in its largest market, the U.S., ‌weighed on sales.

The Sensodyne toothpaste maker posted fourth-quarter organic revenue growth of 2.1%, slower than the previous quarter and below some analysts’ estimates, hurt by a mild cold and flu season in key markets. Organic revenues ‌exclude ​currency moves and recent deals.

Haleon has also ⁠been dealing with weak ⁠U.S. consumer spending and rising competition that steered shoppers towards cheaper alternatives, especially in its Smokers’ Health range, where sales fell by double digits in 2025.

Its 2026 outlook, below analysts’ ​consensus forecast of 4.4% growth, sent its shares as much as 6% lower as analysts questioned management’s ability to hit ⁠longer-term targets.

“We feel confident the U.S. ⁠will grow this year, and by 2027 we’ll ​be back to our medium-term growth range (of 4% to 6%),” CEO ​Brian McNamara told Reuters, adding that benefits from leadership ‌changes in the region and distribution resets will come through in the second quarter.

US SHOPPERS PULL BACK

McNamara said Haleon will prioritise market share and volumes over further U.S. price increases this ⁠year.

Fourth-quarter organic revenue in North America fell 1%, as cautious U.S. consumers cut back on discretionary health purchases amid “concerns around the labour market ⁠and inflation”, the ‌company said.

“Many (U.S.) households feel financially stretched, and ⁠that pressure is now showing up even in ​over-the-counter ‌medicines,” said Chris Beckett, analyst at Quilter Cheviot, ​which holds ⁠a small stake in Haleon.

Increased promotional activity by rivals hit multivitamin sales, the company said.

Haleon announced a 500-million-pound share buyback for 2026, betting that cost cuts and margin improvements will support “high-single-digit” profit growth.

(Reporting by Raechel Thankam Job in Bengaluru. Editing by Louise Heavens ​and Mark Potter)