(Reuters) -Advil maker Haleon, the world’s largest standalone consumer healthcare firm, on Wednesday raised its annual revenue growth forecast, betting on demand for its oral and respiratory health products to stick despite a cost-of-living squeeze.
Consumers are prioritising money towards essential, daily-use products amid an inflation crisis in some parts of the world, boosting sales for companies such as Haleon, which spun off from British drugmaker GSK last year.
U.S.-based rival Kenvue, the former consumer health unit of Johnson & Johnson that makes Tylenol and Benadryl, forecast full-year profit above market estimates in July.
Haleon now expects full-year organic revenue growth of between 7% and 8%, compared with an earlier forecast of the top-end of a 4% to 6% range. Analysts on average expect growth of 6.2%, according to company-supplied estimates.
The company, whose products include Senosdyne toothpaste and Centrum multivitamins, also forecast adjusted operating profit growth of 9% to 11% for the year.
Organic revenue for the six-month period ended June 30 was up 10.4%, beating analysts’ expectations of 8.2%.
Haleon’s respiratory health business especially benefited from strong sales of Theraflu during the period, due to a rise in cough, cold and flu cases globally. The segment posted organic revenue growth of 22%.
“Whilst we continue to expect a challenging environment given further pressure on consumer spending and global geopolitical and macroeconomic uncertainties, we remain confident in the resilience of Haleon’s incredible portfolio of category leading brands,” CEO Brian McNamara said in a statement.
(Reporting by Eva Mathews in Bengaluru; Editing by Sherry Jacob-Phillips and Jamie Freed)
