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    Rashad Kawan • Morgan Stanley

    Rashad Kawan's questions to Haleon PLC (HLN) leadership

    Rashad Kawan's questions to Haleon PLC (HLN) leadership • H1 2025

    Question

    Rashad Kawan of Morgan Stanley followed up on North America, asking what changed regarding the second-half outlook, particularly for Q3, given previous expectations for a step-up. He also questioned the key drivers behind the deceleration in the percentage of the business gaining or maintaining market share, which fell from 71% to 58%, and inquired about the appropriate long-term target for this metric.

    Answer

    CEO Brian McNamara explained that the Q3 outlook is tempered by a difficult comparison to last year's cold and flu product repipe and the impact of a low allergy season on Flonase this year. He attributed the decline in the market share metric primarily to share performance of Advil and Centrum in the U.S. McNamara reiterated that while the 71% figure from last year was high, his long-term ambition remains for the metric to be at 60% or higher.

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    Rashad Kawan's questions to Haleon PLC (HLN) leadership • H1 2025

    Question

    Rashad Kawan questioned the updated 3.5% growth guidance for the year, asking what changed regarding Q3 expectations for North America, such as destocking or weaker Smoker's Health sales. He also asked about the key drivers behind the deceleration in the percentage of the business gaining or maintaining market share, which fell from 71% to 58%.

    Answer

    CEO Brian McNamara explained that Q3 faces a tough comparison from last year's cold and flu repiping and was also impacted by a low allergy season this year affecting Flonase. Regarding market share, he stated the drop from 71% to 58% was primarily driven by share losses in Advil and Centrum in the U.S. and that his long-term ambition remains in the 60%+ range.

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    Rashad Kawan's questions to Haleon PLC (HLN) leadership • H1 2025

    Question

    Rashad Kawan from Morgan Stanley questioned the muted H2 outlook for North America, particularly why a significant step-up isn't expected given last year's low base. He also asked for the key drivers behind the deceleration in the percentage of the business gaining or maintaining market share.

    Answer

    CEO Brian McNamara explained the H2 North America outlook is cautious due to an uncertain retailer environment and ongoing inventory management, which offsets factors like last year's low base. Regarding market share, he attributed the drop from 71% to 58% primarily to share losses in two major U.S. brands, Advil and Centrum, stating his ambition is to consistently be at 60% or higher.

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    Rashad Kawan's questions to Haleon PLC (HLN) leadership • Q2 2024

    Question

    Rashad Kawan requested an update on China's performance excluding the tough cold and flu comps and asked about underlying consumption trends. He also asked for the rationale behind proactively running down oral phenylephrine stock ahead of a formal FDA decision.

    Answer

    CFO Tobias Hestler noted that China's flat H1 performance was strong against a +20% prior-year comp, with the rest of the portfolio growing well. CEO Brian McNamara explained the phenylephrine decision was a proactive measure taken with retail partners to ensure supply continuity for the upcoming cold and flu season, mitigating uncertainty around the FDA's final ruling.

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