Haleon reported operating profits grow 22% in H1

20th Sep 2022 07:03

(Sharecast News) - Consumer healthcare company Haleon saw operating profits grow more than 20% in the six months ended 30 June, driven by increased profits and margins.

Haleon said on Tuesday that interim revenues had risen 13.4% to £5.18bn, led by an 11.6% uptick in organic revenues, leading to a 22.1% increase in reported operating profits to £900.0m.

Adjusted operating profits increased 21.2% to £1.19bn, while adjusted operating margins improved 150 basis points at reported rates to 23.0%.

First-half net cash from operating activities was £680.0m, which included £224.0m related to net cash outflows from separation, restructuring, and disposals.

Free cash flow for H1 was £553.0m, with a free cash flow conversion of 102%, while net debt was £10.7bn as of 18 July after the group repaid £750.0m of a £1.5bn term loan.

Looking forward, Haleon added that its full-year guidance for organic revenue growth of 6-8% and adjusted operating margin was unchanged.

Reporting by Iain Gilbert at Sharecast.com