Influenza drug demand remains weak, Haleon's organic sales in Q1 fell short of expectations.

Due to weak demand for over-the-counter cold and flu remedies at the start of the year, Haleon (HLN.US) reported lower-than-expected first-quarter results. The company, which produces Panadol and Advil pain relievers, stated on Wednesday that organic sales growth in the first quarter was 2.2%, below analysts' expectations of 2.4%. Revenue was 2.857 billion, up 0.1% year-on-year. Haleon had previously warned that the soft cold and flu season at the end of 2025 would continue into the new fiscal year, echoing a performance from competitor Reckitt that was published a week earlier. Reckitt also reported lower-than-expected sales, attributed to weak demand for cold and flu remedies in the U.S. and supply disruptions in the Middle East due to conflict. Consumer brands are facing a concerning market environment, with increased caution from U.S. and European consumers due to rising household bills, as well as supply chain disruptions and escalating energy costs due to the unrest in Iran. On the London stock market, Haleon's shares have fallen by 6.4% since the beginning of the year, while Reckitt's shares have dropped by around 24%. Haleon has been struggling with weak demand and intense competition in the U.S. market (its largest market), leading the company to restructure its leadership in the region and adjust its distribution channels. Growth in the North American market is expected to accelerate this year. Despite soft sales in cold and flu remedies, some of Haleon's other business divisions have performed well, with strong demand for its professional toothpaste brands Sensodyne and Parodontax. The company has been heavily promoting these toothpaste brands in emerging markets, such as China, and has announced an investment of 65 million (approximately $87.8 million) in China during this period. The company reaffirmed its expectations of 3-5% organic revenue growth and high single-digit adjusted operating profit growth for 2026.