Haleon plc (NYSE:HLN) Q4 2023 Earnings Conference Call February 29, 2024 4:00 AM ET
Company Participants
Sonya Ghobrial - Head, Investor Relations
Brian McNamara - Chief Executive Officer
Tobias Hestler - Chief Financial Officer
Conference Call Participants
Rashad Kawan - Morgan Stanley
Guillaume Delmas - UBS
Iain Simpson - Barclays
Chris Pitcher - Redburn
David Hayes - Jefferies
Bruno Monteyne - Bernstein
Celine Pannuti - JPMorgan
Olivier Nicolai - Goldman Sachs
Mikheil Omanadze - BNP Paribas
Tom Sykes - Deutsche Bank
Sonya Ghobrial
Good morning everyone. Thanks very much for joining us for our Full Year Results Q&A. Hopefully by now you've had time to look at our presentation as well as the press release and watch the video in the Investors section of our Haleon website. As usual, I'm joined by Brian McNamara, our CEO; and Tobias Hestler, CFO.
So, with that we'd like to get started with Q&A and hand over to the first question. Thanks.
Question-and-Answer Session
Operator
The first question comes from the line of Rashad Kawan Morgan Stanley. Please go ahead.
Rashad Kawan
Hey guys, good morning and thanks for taking my question. Congrats on the results. Two for me please. The first one in terms of absolute margin developments, you're calling out 3% transactional FX impact another 3% from M&A. so that's about a £150 million headwind. I think you likely get about £100 million from cost savings to partly offset that some more from kind of operating leverage.
So, you've taken some pricing obviously in the back half of last year. Can you just talk about how you expect gross margin to develop over the year? How much of the £100 million in savings you plan on reinvesting et cetera? Just trying to get a sense for the margin evolution over the year?
And then my second question just on the shape of the P&L for this year. You've given guidance on Q1. But how should we think about the different moving parts over the year in terms of price mix and volume again you're still benefiting from some carryover pricing so do you expect growth to be priced like again? Do you plan on taking more pricing? Any color there is helpful. Thank you very much.
Brian McNamara
Okay. Thanks Rashad. Tobias I'll pass that to you.
Tobias Hestler
Great. So, on your margin question so for 2024. So I think we've given you as you say the building blocks with translational FX 2 and 3 down, so that gives you about 20 bps negative. That's largely driven by the dollar and the euro. So, it's a big currencies, of course, we'll update you as we go through the year and our ad memo each quarter how that evolves. We've given you the M&A building blocks which is down 1% and 3% that gives you another about 40 bps of margin that is negative.