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Monday, February 28, 2022

Glaxo to Spin Off Haleon Consumer Business in July; Targets 4%-6% Sales Growth

 GlaxoSmithKline PLC said Monday that it plans to demerge and list its consumer healthcare business--recently named Haleon--in July 2022, and set targets for the company, including 4%-to-6% sales growth in the medium term.

Haleon--which includes well-known brands such as Sensodyne and Voltaren--will focus all of its business on consumer health and is expected to deliver sales growth as well as an expansion of adjusted operating margin, Glaxo said.

According to estimates provided by Glaxo, the company is projected to deliver annual sales growth of between 4% and 6% in 2022 and in the medium term, and "sustainable moderate expansion" of adjusted operating margin.

Adjusted operating margin is expected to benefit from price increases that occurred during 2021, according the company said.

"Inflationary cost pressures and supply chain costs are expected to be well-accommodated given the gross margin profile of the business," the company said.

Haleon's margin will also reflect the contribution from upgraded annual cost synergies coming from the completed integration of the Pfizer portfolio, with about 120 million pounds ($161 million) to be delivered in 2022, Glaxo said. The synergies are expected to offset annual costs associated with running a standalone company, Glaxo said.

https://www.marketscreener.com/quote/stock/GLAXOSMITHKLINE-PLC-9590199/news/GlaxoSmithKline-to-Spin-Off-Haleon-Consumer-Business-in-July-Targets-4-6-Sales-Growth-39609078/

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