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Investing.com -- HALEON PLC (LON:HLN) shares slid 3% in London on Thursday after the Sensodyne toothpaste maker said its revenue growth for 2025 would be weighted toward the second half of the year.
The company's US-listed stock also fell 3% in premarket trading.
The consumer healthcare company, which produces ENO antacids and Centrum multivitamins, forecast organic revenue growth of 4% to 6% for the year. That compares with an average analyst estimate of 5.3%, according to a company-compiled consensus.
"We are well positioned to drive organic revenue growth within our medium-term guidance range, with strong organic profit growth in 2025," Chief Executive Brian McNamara said in a statement.
However, that growth will be backloaded, finance chief Dawn Allen noted in prepared video remarks, as Haleon works through excess inventory of respiratory products.
Jefferies analysts said strong fourth-quarter sales were overshadowed by the company’s "broad outlook commitment," calling the forecast "wise" given ongoing uncertainties.
The company reported Q4 organic growth of 6.8%, beating the consensus estimate of 6.1%.
Haleon reported full-year revenue of £11.23 billion ($14.21 billion), in line with analysts’ expectations of £11.22 billion.
Adjusted operating profit came in at £2.50 billion, also matching consensus estimates.
Morgan Stanley analysts said Haleon's 2025 outlook "is in line with the company's mid-term algorithm."
"Encouragingly, 71% of the business gained or maintained share through the year, lending further evidence to the superiority of its brands and pricing power," they noted.
"While this represents another solid print, we think investor focus will turn focus to Haleon's ability to expand margins on a reported basis in 2025, following 3Y of declining margins as a result of M&A and FX dilution," analysts added.
Stifel analysts voiced similar comments, reiterating a Hold rating on Haleon shares, citing "valuation grounds" and a view that the company "needs a clearer path to organic growth at the top end of its 4-6% organic growth guidance for 2025 to warrant a further re-rating of the shares."
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