Haleon declares maiden dividend amid profit growth
By Iain Gilbert
Date: Thursday 02 Mar 2023
(Sharecast News) - Consumer health business Haleon proposed its maiden dividend on Thursday as the GSK spinoff said price hikes and efficiencies had led to profit growth and increased cash flow.
Haleon proposed a dividend payment of 2.4p per share, roughly 30% of the company's adjusted earnings since listing, and stated it intends to keep its pay-out ratio at approximately that level moving forward.
The FTSE 100-listed group said adjusted operating profits grew 14% to £2.5bn, or 5.9% at constant currency, despite battling "significant" inflation in costs, standalone fees and adverse FX transactions.
Revenue also rose 14%, up to £10.86bn, with organic growth rising 9.0%, driven by a 4.3% uptick from price increases and 4.7% from volume and product mix. Free cash flow came to £1.6bn after the group narrowed net debt from £10.7bn to £9.9bn.
Moving forward, Haleon guided for revenue growth of 4.6% in 2023, while adjusted operating profit margins were predicted to be "broadly flat", principally due to further adverse foreign exchange impacts.
As of 0835 GMT, Haleon shares were down 2.20% at 319.42p.
Reporting by Iain Gilbert at Sharecast.com
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