Some info from the press release:
https://www.haleon.com/content/dam/hale ... dasset.pdfStrong growth, with organic growth across all categories and regions; positive volume/mix
● Organic growth +8.0% with 7.0% price and 1.0% volume/mix
● FY revenue +4.1% to £11,302m, FX reduced revenue by 3.8% and M&A3 impact was (0.1)%
● Power Brands +9.1% organic growth; 6 of the 9 Power Brands grew double digit
● 58% of our business gained or maintained market share4
Increased FY23 operating profit driven by positive operating leverage
● Adjusted operating profit increased 10.4% constant currency to £2,549m; Excluding M&A3 impact adjusted operating profit was up 10.8% constant currency
● Adjusted operating profit margin 22.6%, up 50bps constant currency and 60bps excluding M&A3, with the impact of FX (70)bps
● Reported operating profit +9.4% to £1,996m with significantly lower Separation and Admission costs partly offsetting negative FX
● Adjusted diluted EPS 17.3p, down 6.0% largely due to annualisation of interest costs and adverse FX
Strong cash flow reducing leverage, supporting dividend increase and share buyback
● FY net cash flow from operating activities was £2,100m, with Free cash flow of £1,575m
● Net debt at 31 December 2023 of £8,514m, with 3.0x net debt/adjusted EBITDA
● Proposed dividend payout of 35% (FY 2022: 30%); with a final dividend of 4.2p per ordinary share
● Going forward dividend to grow at least in line with adjusted earnings
● Announcing capital allocation of £500m for share buybacks in 2024
Evolution into an agile consumer health organisation
● Continued progress in the journey to be more agile, effective and efficient, accelerated post de-merger
● Our 3 year £300m productivity programme is on track, delivering efficiencies, increasing agility and supporting continued investment including in A&P
● Continued portfolio optimisation; with Lamisil sale completed in October and ChapStick5 disposal announced in January 2024
Expect another year of strong growth in 2024, well placed over medium term
● Organic revenue growth expected to be 4-6%
● Positive operating leverage to deliver organic operating profit growth ahead of organic revenue growth
● Positioned well to deliver on medium term guidance
● Medium term target net debt/adjusted EBITDA of around 2.5x
and later they say
Dividend
Reflecting the strength of the free cash flow and the progress in deleveraging since the demerger the Board is proposing a FY 2023 total dividend of 6.0p per ordinary share which represents a pay-out ratio of approximately 35% of FY 2023 adjusted earnings (ahead of prior commentary that this would represent an approximately 30% pay out). This includes a final dividend of 4.2p per ordinary share. Subject to shareholder approval, the final dividend will be paid on 16 May 2024 to holders of ordinary shares and US American Depositary Shares (ADS) on the register as of 15 March 2024 (the record date). The ex-dividend date is 14 March 2024. For ordinary shareholders wishing to participate in the Dividend Reinvestment Programme (DRIP), the election deadline for the DRIP is 17 April 2024. Going forward, subject to market conditions and Board approval, Haleon expects to grow its ordinary dividend at least in line with adjusted earnings.