Haleon plc (NYSE:HLN) Q2 2024 Earnings Call August 1, 2024 4:00 AM ET
Company Participants
Sonya Ghobrial - Investor Relations
Brian McNamara - Chief Executive Officer
Tobias Hestler - Chief Financial Officer
Conference Call Participants
Guillaume Delmas - UBS
Bruno Monteyne - Bernstein
Chris Pitcher - Redburn Atlantic
David Hayes - Jefferies
Rashad Kawan - Morgan Stanley
Jeremy Fialko - HSBC
Olivier Nicolai - Goldman Sachs
Celine Pannuti - JPMorgan
Iain Simpson - Barclays
Operator
Good morning, all. Thank you for joining us for the Haleon 2024 Half Year Results Q&A. My name is Carly, and I’ll be coordinating the call today. [Operator Instructions] I will now hand over to our host, Sonya Ghobrial, to begin.
Sonya Ghobrial
Thanks very much. Good morning, everyone, and welcome to Haleon’s half year 2024 Q&A conference call. I’m Sonya Ghobrial, Head of Investor Relations, and I’m joined this morning by Brian McNamara, our Chief Executive Officer; and Tobias Hestler, our Chief Financial Officer.
Just to remind listeners on the call that in the discussions today, the company may make certain forward-looking statements including those that refer to our estimates, plans and expectations. Please refer to this morning’s announcement and the company’s U.K. and SEC filings for more details, including factors that could lead to actual results to differ materially from those expressed in or implied by such forward-looking statements. We’ve posted today’s presentation on the website this morning with prepared remarks in a video running through the results in detail. So hopefully, you’ve all had the chance to see that ahead of this call.
With that, we’ll go straight to opening the call with Q&A for my last time. Thank you. Operator, if you want to give us the first question, please?
Question-and-Answer Session
Operator
Of course. Our first question comes from Guillaume Delmas of UBS. Your line is now open.
Guillaume Delmas
Thank you very much. Thank you. Good morning, Brian, Tobias and Sonya. I’ve got two questions, please. The first one is on North America. I’m wondering if you could talk a bit about the trading conditions there. Because it seems your pricing is very quickly normalizing between the first and the second quarter, and we’ve also heard some of your large competitors clearly not shying away from raising the promotional intensity. And on top of that, I mean, it’s been several quarters now in the U.S. that we’ve seen a significant gap between your sell-in and your sell-out. So wondering if with the reversal, the end of retailer’s destocking, the discrepancy between sell-in and sell-out should correct from Q3, and therefore, what I’m getting to is some meaningful acceleration for North America from an excellent growth standpoint. And then my second question, it’s on your organic sales growth outlook for the second half. Because here, when I exclude Pain Relief and Respi from your Q2 or first half organic sales growth, I basically get 60% of your turnover growing in excess of 8% in the first 6 months of the year. So my question here is you’ve got a more favorable basis of comparison for both pain and respi in the second half. So, a, do you expect both units to be back into positive organic sales growth territory from Q3? And assuming continued momentum for the remaining 60% of this, I mean, would it be fair to assume an organic sales growth in the second half towards the top end of your 4% to 6% range? So any help on that would be great. Thank you.