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    David Hayes • Jefferies

    David Hayes's questions to Haleon PLC (HLN) leadership

    David Hayes's questions to Haleon PLC (HLN) leadership • H1 2025

    Question

    David Hayes of Jefferies asked for quantification of the growth drag from the nicotine replacement therapy (NRT) business on Q2 results and the full-year guidance. He also questioned the strategic rationale for retaining the complex U.S. NRT business. His second question sought clarity on whether the full-year guidance implies a flattish reported margin year-on-year after accounting for all factors.

    Answer

    CEO Brian McNamara acknowledged the complex three-way partnership structure of the U.S. nicotine business. CFO Dawn Allen quantified the drag from Smoker's Health, stating it negatively impacted total group growth by 60 basis points in Q2. Regarding margins, she indicated that the shape of H1 performance—strong gross margin, reinvestment in A&P, and cost control—is expected to continue in H2, supporting the high single-digit operating profit growth guidance and that current consensus estimates are comfortable.

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    David Hayes's questions to Haleon PLC (HLN) leadership • H1 2025

    Question

    David Hayes asked for a quantification of the growth drag from nicotine replacement therapy (NRT) in Q2 and for the full year. He also questioned the strategic focus on this category, given its partnership structure, and asked about the full-year reported margin outlook considering all factors.

    Answer

    CEO Brian McNamara described the complex three-way partnership for the U.S. nicotine business. CFO Dawn Allen quantified the drag from Smoker's Health, stating it had a 60 basis point negative impact on total group growth in Q2. Regarding the full-year margin, she confirmed the high single-digit organic operating profit growth guidance and stated the company is comfortable with current consensus.

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    David Hayes's questions to Haleon PLC (HLN) leadership • H1 2025

    Question

    David Hayes from Jefferies asked for quantification of the drag from nicotine replacement therapy on Q2 results and the full-year guidance. He also inquired about the complex partnership structure for the U.S. business and the rationale for retaining it. Finally, he asked if the overall guidance implies a flattish reported margin for the full year.

    Answer

    CEO Brian McNamara described the U.S. nicotine business as a complicated three-way venture. CFO Dawn Allen quantified the drag, stating Smoker's Health had a 60 basis point negative impact on total group growth in Q2. Regarding margins, Allen confirmed the guidance for high single-digit operating profit growth, driven by strong gross margin and cost control, and stated the company is comfortable with the current consensus, implying margin expansion, not flat performance.

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    David Hayes's questions to Haleon PLC (HLN) leadership • Q2 2024

    Question

    David Hayes asked if the contribution from the new Oral Care whitening range could be quantified to assess future comps. He also inquired about the shift to on-market share buybacks and whether there were one-off costs from the phenylephrine switch impacting U.S. margins.

    Answer

    CEO Brian McNamara positioned the whitening launch as part of a consistent annual innovation model, declining to quantify its specific impact. CFO Tobias Hestler explained the buyback strategy adds optionality and clarified that any write-offs from the phenylephrine switch were not material, with the main impact being lower sales volume in H1.

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    David Hayes's questions to Unilever PLC (UL) leadership

    David Hayes's questions to Unilever PLC (UL) leadership • H1 2025

    Question

    David Hayes of Jefferies asked if pricing levels are too high in any markets, creating a risk to volumes, and requested a quantification of the tax leakage from the ice cream spin-off.

    Answer

    CEO Fernando Fernandez acknowledged that pricing went 'too far' in Brazil laundry and on TRESemmé in the U.S., but these have been corrected to protect volumes. He emphasized that the company resets pricing when competitors do not follow. He declined to quantify the tax leakage from the spin-off at this time, stating more details would be provided later.

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    David Hayes's questions to Unilever PLC (UL) leadership • Q2 2024

    Question

    David Hayes questioned the balance between hitting short-term margin targets versus increasing investment for long-term growth, and asked about the level of net productivity savings achieved in the first half.

    Answer

    CEO Hein M. Schumacher emphasized a focus on underlying operating profit growth rather than a specific margin target, allowing flexibility to invest behind strong brand plans. CFO Fernando Fernandez clarified that the new €800 million productivity plan is in motion but only 5-10% has been implemented so far, with most benefits expected in 2025 and beyond.

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