Pharmaceutical company Haleon has posted a 10.5% jump in operating profit to £2.2bn in its latest full-year results.

The group said it had delivered against its own growth plans having achieved 5% organic revenue growth for the year with organic profit growth ahead of this at 9.8%.

Haleon, whose brands include Sensodyne toothpaste, Panadol and Advil painkillers, and Centrum vitamins, was posting its annual results for the year to 31 December 2024.

The company also announced that 71% of its business gained or maintained share in the year, which it said demonstrated the “strength and appeal” of its brands among consumers.

“I am pleased with our performance in 2024 and the progress we are making to build Haleon into an agile, competitive and consumer-focused organisation,” CEO, Brian McNamara, said.

“We continued to generate strong cash flow, with net debt leverage now standing at 2.8x, and returned over £1bn to shareholders in 2024 through dividend payments and our first ever share buyback programme.

“Looking ahead, we are well positioned to drive organic revenue growth within our medium-term guidance range, with strong organic profit growth in 2025.”

Upon the results, Haleon also announced plans allocate a further £500m to share buybacks in 2025.

The pharmaceutical company has forecast organic revenue growth to be 4-6% in the next financial year, with organic operating profit growth expected to be ahead of organic revenue growth.

Despite the outlook, Haleon’s share price did fall by over 34% in its trading earlier today.

Head of equity research at Quilter Cheviot, Chris Beckett, added: “The company’s sales growth at 7% and 10% underlying profit growth for the year is solid, and consumer health is a good subsector to be in. The stock has moved quite a way since it floated, so the reaction is understandable, but longer term this remains a good quality business with good brands.

“Haleon is no doubt facing some headwinds, some of which have been out of its control such as a soft cold and flu season particularly in North America, but those inside of the business continue to be managed relatively well.”

---