Are volumes really pivoting?

Research evidence excerpt

Are volumes really pivoting?

Equity Research

European Consumer Staples

31 July 2026

Haleon

HLN is starting to deliver the volume pivot we have been

waiting for. US growth accelerated, EMs strengthened and

margins comfortably beat. With investor jitters around the HLN.L/HLN LN OVERWEIGHT Unchanged

FY25 3-5% OSG guide easing, attention will turn to the European Consumer NEUTRAL

credibility of stepping up to 4-6% OSG in 27. TP to 430p (from Staples Unchanged

415p) OW Price Target GBp 430

raised 4% from GBp 415

Price (30-Jul-26) GBp 369

Haleon’s H1 result was better than the share-price reaction suggests. We think the lack of Potential Upside/Downside +16.7%

a share buyback is a red herring and don't believe there is any real readacross to what Source: Bloomberg, Barclays Research

Haleon may or may not do around acquisitions.Management gave little indication that a

sizeable VMS deal is needed, pointing instead to improving Centrum consumption and Market Cap (GBP mn) 32469

organic innovation opportunities. Leverage was bang on 2.5x EBITDA and we were not Shares Outstanding (mn) 8808.90

expecting a SBB. Free Float (%) 99.97

52 Wk Avg Daily Volume (mn) 15.5Q2 organic growth accelerated to 3.1%, with volume/mix improving from -0.2% in Q1 to +1.4%.

Dividend Yield (%) 1.98North America delivered +2.0% volume/mix and emerging markets grew 6.3%. We would call

Return on Equity TTM (%) 10.04out an important datapoint which is Haleon's ex respiratory growth (due to very weak

Current BVPS (GBp) 185seasonal cold and flu season) accelerated from 3.5% in Q1-26 to 4.7%.

Source: Bloomberg

Margins and cash were also strong. Adjusted gross margin expanded 140bp at constant

currency, adjusted operating profit grew 8.2%, EPS increased 12.0% and free cash flow Price Performance Exchange-LSE