NEW YORK: Consumer healthcare company Haleon has reported first-quarter revenue slightly below market estimates, as volumes declined due to retailer destocking in the United States and cooling demand for some of its medicines after a surge last year.

The maker of popular household products such as Sensodyne toothpaste and pain-reliever Panadol, had earlier said that the first three months of 2024 would be impacted by a softer cold and flu season and a slowdown in painkiller Advil’s sales in Canada, following a surge in demand last year.

Demand for medicines such as Contac and Fenbid, which benefited from pent-up demand in China last year after lockdown restrictions were lifted, have also cooled, impacting Haleon’s quarterly sales growth.

Revenues stood at £2.92bil (US$3.64bil) for the quarter ended March 31, slightly missing expectations of £2.93bil, according to a company-compiled consensus.

On a reported basis, revenue was down 2.2% last year.

“The miss in volumes more than offsets a (played down) margin beat, outlook no change. We could expect the stock to be an under performer this morning,” Jefferies analysts said.

Shares in the FTSE 100 group fell 1.8% to 333.30 pence, to become one of the top losers on the blue-chip index. The stock had risen about 5% this year as of Tuesday’s close.

Haleon’s name is inspired by merging “Hale”, which is an old English word that means in good health, and “Leon” which is associated with the word strength.

It comprises assets from GSK and Pfizer and sells non-prescription drugs, vitamins and oral care products.

It was spun-off from GSK in 2022.

 - Reuters