Sensodyne maker Haleon forecasts below-target 2026 growth on weak demand in US

Feb 25 (Reuters) - British consumer healthcare group Haleon forecast a 3% to 5% growth in 2026 organic revenue, below its medium-term forecast after weak consumer confidence in the United States, its largest market, weighed on sales.

The Sensodyne maker's organic revenue grew 2.1% over the three months through December, compared with 3.4% in the prior quarter, particularly weighed down by the performance in its respiratory health business.

A mild cold and flu season in North America and in Central and Eastern Europe hurt sales of respiratory products, compounding the impact of weak U.S. spending and rising competition that has pushed shoppers toward cheaper alternatives, especially in the company’s struggling Smokers’ Health range.

The company, which was spun off from GSK in 2022, said it is targeting an annualised gross cost savings of between 175 million pounds and 200 million pounds over the next two years.

"While the consumer environment remains challenging near-term, we are even more focused on driving category growth and increasing our market outperformance,” said Chief Executive Officer Brian McNamara in a statement.

Despite the sluggish growth outlook, Haleon announced 500 million pounds in share buybacks for 2026, matching its 2025 program, betting that cost cuts and margin improvements will offset tepid sales growth to deliver "high single digit" profit growth.

For 2026, the company expects organic revenue to grow between 3% and 5%, compared with market expectations of 4.4% growth, according to a company-compiled poll.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Louise Heavens)