Jeremy Fialko

Jeremy Fialko asked about the U.S. market, specifically if the pharma channel (Walgreens, CVS) is expected to remain under pressure in 2026 or if ownership changes could lead to improvement. He also questioned whether U.S. market growth improvement is solely dependent on better consumer sentiment or if other specific factors (excluding cold and flu impacts) are expected to contribute.

Answer

Brian McNamara, CEO, acknowledged the ongoing channel shift from drug to e-commerce, noting that Haleon's Amazon shares are higher than offline for many brands. He stated that lower inventory levels in Walgreens and CVS in 2025 were managed proactively, and the situation is not expected to worsen. McNamara mentioned that club and dollar channels are performing better as consumers seek value, and Haleon is focused on increasing offerings in these channels to meet affordability needs. He emphasized that Haleon is actively driving category growth and competitiveness, not just waiting for market changes.

Jeremy Fialko asked about the ongoing pressure on the pharma channel (Walgreens, CVS) in the U.S. for 2026, and if ownership changes could lead to improvement. He also questioned whether broader U.S. market growth depends solely on consumer improvement or if other specific factors are at play, excluding cold and flu impacts.

Answer

CEO Brian McNamara acknowledged the ongoing channel shift from drug stores to e-commerce (Walmart.com, Amazon.com), which is favorable for Haleon, as 16 of its 18 top Amazon brands have higher online share. He stated that lower inventory levels in Walgreens and CVS in 2025 were due to their own challenges, and Haleon believes its inventory is now at target levels. He noted that the impact of new Walgreens ownership is yet to be seen but doesn't expect the situation to worsen. In the broader U.S. market, he observed better performance in club and dollar channels as consumers seek value, and Haleon is focused on increasing offerings in these channels to address affordability. He emphasized Haleon's focus on competitiveness and market share growth rather than passively waiting for categories to change.

Jeremy Fialko sought confirmation that the pricing contribution to growth would remain relatively stable after the Q1 to Q2 step-down. He also asked for an update on the environment for bolt-on M&A and the potential for increased activity.

Answer

CFO Tobias Hestler confirmed the pricing outlook, explaining the Q2 step-down was an expected effect of rollover from annual negotiations in EMEA and should be more stable going forward. CEO Brian McNamara reiterated that while the company is actively looking at bolt-on M&A that is strategic and value-creative, it is not a necessity for delivering on guidance.

Jeremy Fialko requested more details on Europe's Q4 performance, specifically whether the flattish growth reflected entirely slower markets or a slip in relative performance, and the outlook for the region in 2026. He also inquired about the significant growth difference between Power Brands and non-Power Brands in Q4, asking how the 22% non-Power Brand business is managed to prevent it from becoming a drag on turnover.

Answer

CEO Fernando Fernandez confirmed a Q4 slowdown in Europe due to flattish markets but affirmed Unilever's outperformance, particularly in home and personal care, with strong innovation. He noted softness in foods (Netherlands, Germany) but good performance in Italy, France, and the UK. Power Brands, now 78% of revenue, grew strongly (nearly 6% USG in Q4) and receive all incremental investment. Non-Power Brands (22% of revenue) saw negative volume growth (-1% for the year, -3% in Q4) due to discontinuations and geographical factors, but the strategy of focusing on strongest assets remains. He also highlighted the excellent performance of 'One Unilever' smaller markets.

Jeremy Fialko of HSBC asked for an overview of market share performance and for details on the flat volume performance in the Personal Care division during the quarter.

Answer

CEO Fernando Fernandez reported market share gains in the U.S., Europe, and India, while acknowledging losses in China, Indonesia, and a short-term issue in Brazil. He explained that Personal Care's flat volume was primarily due to its high exposure to a sharp market decline in Latin American deodorants and the temporary impact of necessary price increases in LATAM and India, expecting a recovery.

Jeremy Fialko of HSBC asked for an update on competitive metrics, including market share trends, and for more detail on the China business, specifically regarding its portfolio, competitive landscape, and potential for strategic changes.

Answer

CEO Hein M. Schumacher reported that market shares improved in H2 2024, reaching a neutral position in measured markets, with gains in unmeasured businesses like Wellbeing and Prestige. He noted strength in Europe and the U.S. but softness in China and Indonesia due to ongoing resets. For China, he explained the focus is on strong brands like Clear and OMO and adapting to new channels like Douyin, with positive results expected from H2 2025.

Jeremy Fialko asked for details on competitive metrics, such as market share performance in 2024. He also inquired about the portfolio and competitive landscape in China, including whether Unilever might consider divesting parts of that business.

Answer

CEO Hein. M. Schumacher stated that turnover-weighted market shares improved in H2 2024 to a neutral position, as guided, and he believes the company is gaining share in unmeasured businesses like Wellbeing and Prestige. He noted strength in Europe and the US, but softness in China and Indonesia due to ongoing resets. For China, he described a concentrated portfolio and a focus on adapting to new channels like Douyin, with positive effects expected in H2 2025, showing no intention to divest.

Jeremy Fialko asked for the specific growth rate and scale of the Health & Wellness business and inquired about the consumer dynamics in the difficult Chinese market and the outlook for the rest of the year.

Answer

CEO Hein M. Schumacher stated that the combined Health & Wellness and Prestige Beauty businesses grew double-digits, with H&W's strength compensating for muted Prestige performance. He noted China's market growth is low but feels good about Unilever's business there, which is not heavily exposed to luxury. CFO Fernando Fernandez added that the Health & Wellness business is around €2.5 billion annually.

Jeremy Fialko asked whether the cautious top-line outlook was due to underlying U.S. consumer softening or more transitory factors, and inquired about any increases in promotional activity.

Answer

Executive Thibaut Mongon clarified that low illness incidence rates are unusual but do not reflect a weak consumer, who continues to prioritize health and is not trading down to private label. He stated there has been no increase in promotional intensity in the self-care segment and only a slight, low single-digit increase in other categories, which he described as in line with a 'new normal.'