Oct 29 (Reuters) – British consumer health group Haleon cut its annual revenue growth outlook to below market forecasts on Thursday, hurt by weak demand for cold medicines and a regulatory setback in China, knocking its shares down nearly 14%.
• The maker of Advil painkillers and Sensodyne toothpaste now expects full-year organic revenue growth of around 2.5% against a previous forecast of 3% to 5%. Analysts had been expecting 3.2% in a company-compiled poll
• Organic revenue for the three months ended September 30 rose 2.6%, missing estimates of 3.2%. Weaker consumption of cough, cold and flu treatments hit orders in North America, Haleon’s largest market
• Haleon’s sales in China, a major market, were weighed down by a change in raw material classifications that affected imports of over-the-counter Centrum multivitamins
• The company also flagged a £15 million to £20 million ($20 million to $27 million) hit to fourth-quarter net revenue from speeding up its strategy in Brazil in response to the country’s new tax framework
• Its shares were the biggest losers on Europe’s STOXX 600 and Britain’s FTSE 100 indices in early trading
($1 = £0.7503)
(Reporting by Simone Lobo and Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Jan Harvey)
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