GlaxoSmithKline to Spin Off Haleon Consumer Business in July; Targets 4%-6% Sales Growth
February 28 2022 - 6:55AM
Dow Jones News
By Cecilia Butini
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.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
February 28, 2022 06:40 ET (11:40 GMT)
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