Warren Ackerman

Warren Ackerman inquired about Haleon's new reorganization, including the Chief Growth Officer and Chief Transformation Officer roles, new reporting structure, and U.S. hires. He asked how these changes would unlock growth, drive volume and innovation in the U.S., and impact shelf resets in a challenging operating environment.

Answer

CEO Brian McNamara stated the reorganization aims to unlock growth and agility by streamlining operations and improving strategy execution. He detailed the Chief Growth Officer role, which combines category structure, marketing effectiveness, insights, strategy, and commercial excellence, alongside six new operating units. He mentioned a flatter, leaner organization leading to GBP 175 million-GBP 200 million in gross savings for investment. In the U.S., new category general managers and external talent have been brought in, with anticipated distribution and shelving wins across oral health, VMS, and pain relief in Q2. He noted strong performance in oral health.

Warren Ackerman inquired about Haleon's new reorganization, including the introduction of a Chief Growth Officer, Chief Transformation Officer, new reporting structure, and recent U.S. hires. He asked how these changes are expected to unlock growth, drive more volume and innovation in the U.S., and how shelf resets are shaping up in the challenging U.S. operating environment.

Answer

Brian McNamara, CEO, stated that the reorganization aims to unlock growth and agility by streamlining operations and driving strategy to execution. He highlighted the Chief Growth Officer role, which centralizes category structure, marketing effectiveness, insights, strategy, and commercial excellence, and the shift to six operating units. McNamara noted that the flatter organization leads to GBP 175-200 million in gross savings, providing flexibility for growth investment. In the U.S., new leadership and category general managers are in place, and Q2 is expected to see distribution and shelving wins across oral health, VMS, and pain relief.

Warren Ackerman of Barclays PLC asked for specific details on three key U.S. brands. He inquired about the plans to fix Advil's market share, the size and second-half expectations for the Smoker's Health business, and whether any significant innovation is planned for Centrum in the back half of the year.

Answer

CEO Brian McNamara outlined that for Advil, a new media campaign and strong promotional plans are in place, with 'green shoots' of share growth seen late in Q2. He described Smoker's Health as a 'couple hundred million' dollar business and expects its decline to lessen in H2, aided by a new innovation. For Centrum, he highlighted the reactivation of its cognitive health platform with a new claim ('slows cognitive aging by 60%') and other innovations planned for H2.

Warren Ackerman asked for specifics on actions being taken to fix the Advil brand's market share. He also inquired about the size of the Smoker's Health business in the U.S., its second-half expectations, and whether new innovation is planned for Centrum in H2.

Answer

CEO Brian McNamara explained that for Advil, a new media campaign and promotional plans are showing 'green shoots' of share growth. For Smoker's Health, a business in the 'couple hundred million' range, he expects less decline in H2 but not a return to growth. For Centrum, he highlighted a new claim ('slows cognitive aging by 60%') and unannounced innovations for H2 to firm up performance.

Warren Ackerman from Barclays Investment Bank asked for specifics on the plans to fix market share losses for Advil. He also inquired about the size of the Smoker's Health business in the U.S., its second-half outlook, and whether any new innovation is planned for Centrum in H2.

Answer

CEO Brian McNamara explained that for Advil, a new media campaign and strong promotional plans are in place, with early signs of share recovery in late Q2. He described Smoker's Health as a 'couple hundred million' dollar business and expects declines to lessen in H2, with a new innovation launching in 2026. For Centrum, he highlighted the reactivation of a cognitive health claim and upcoming new product innovations to help firm up performance.

Warren Ackerman inquired about Unilever's emerging market outlook for 2026, specifically addressing performance in Brazil, India, China, and Indonesia, including fixes for Brazil deodorants and the effectiveness of resets in China and Indonesia. He also asked about the US market's Q4 slowdown, category growth, price pressure, 2026 confidence, and innovation pipeline. Additionally, he sought an update on productivity savings, including the total amount achieved and the outlook for 2026.

Answer

CEO Fernando Fernandez expressed confidence in emerging markets as a long-term competitive advantage, detailing improving performance in India (brand equity, execution, home care share gains), China (accelerated H2 2025 growth, e-commerce interventions), and Indonesia (leadership reset, stock levels, brand relaunches, improving sales run rates). He noted Latin America's flattish market but Q4 return to growth, with corrective actions in Home Care and Deodorants expected to yield results from Q2 2026. For the US, he highlighted consistent volume growth over three years due to portfolio transformation, innovation, and retailer relationships, acknowledging a Q4 slowdown in wellbeing but confidence in structural growth. CFO Srinivas Phatak reported cumulative productivity savings of EUR 670 million, ahead of schedule, with the remaining EUR 130 million expected in 2026, emphasizing ongoing overhead cost management.

Warren Ackerman asked about Unilever's 2026 volume growth outlook, the performance of Prestige Beauty and Wellbeing in North America (including Liquid I.V. and Paula's Choice/Dermalogica), and the challenges and strategic responses in Latin America, particularly regarding pricing and market share in Brazil.

Answer

CEO Fernando Fernandez highlighted North America's strong volume-led growth, driven by portfolio transformation and retailer relations. He confirmed double-digit growth for Liquid I.V. and Nutrafol, mid-single-digit growth for Prestige Beauty, and low single-digit growth for Paula's Choice and Dermalogica. For Latin America, he acknowledged macro pressures and 'own goals' in Brazil (over-pricing in laundry, deodorant format shifts), detailing corrective actions and expecting improvement in 2026, while reaffirming a long-term 2% market volume growth ambition.

Warren Ackerman of Barclays Investment Bank requested a detailed breakdown of emerging market performance, contrasting Latin America's weakness with Asia's recovery, and asked about the U.S. business performance, particularly in Personal Care.

Answer

CEO Fernando Fernandez acknowledged a weak quarter in Latin America due to macroeconomic pressures and pricing actions but expects improvement. Acting CFO Srinivas Phatak detailed the recovery in Asia, noting a step-up in India, sequential improvement in Indonesia, and a return to growth expected in China in H2. Fernandez attributed strong U.S. performance to portfolio transformation, despite a temporary issue in Hair Care pricing which has been corrected.

Warren Ackerman from Barclays asked about the outlook for category growth and market share in 2025, the drivers of a slower Q1 start, and the phasing of gross margin and operating profit, including expectations for COGS and brand investment.

Answer

CEO Hein M. Schumacher acknowledged a slower market growth trend continuing from Q4 into Q1, particularly in Home Care and Nutrition, but expects growth to be back-weighted as pricing actions take effect. He affirmed that the 45% gross margin is a new base to build from, supported by net productivity and premiumization. CFO Fernando Fernandez added that net material inflation is projected at €0.7-€0.8 billion, concentrated in specific commodities, which will necessitate pricing from Q2 onwards.

Warren Ackerman asked about category growth trends, market share expectations for 2025, the reasons for a slower Q1, and the phasing of margins, including gross margin, COGS inflation, and brand and marketing spend.

Answer

CEO Hein. M. Schumacher confirmed a slower start to 2025, with growth back-weighted due to a lag in pricing actions against rising commodity costs. He stated that the 45% gross margin is a new base to grow from, driven by net productivity and premiumization, and that brand and marketing investment (BMI) will remain competitive around 15.5%. CFO Fernando Fernandez added that material inflation is expected to be around €0.7-€0.8 billion, concentrated in specific commodities, which will necessitate price increases from Q2 onwards.