Haleon Pakistan Limited (HALEON): Growth Boost from New Launches and Lower Costs

Haleon Pakistan Limited (HALEON), the well-known consumer healthcare company, is on track for a strong performance in 2QCY25. The company is expected to post earnings per share (EPS) of PKR 15.18, which is a 32% jump compared to last quarter and a 45% rise from last year.

So, what’s driving this growth?

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New product launches

Haleon recently introduced new packs of CAC-1000, Panadol Night, and Centrum. These fresh launches have helped the company attract more customers and push sales higher.

Lower raw material prices

Medicines rely heavily on key ingredients called APIs (Active Pharmaceutical Ingredients). Prices of common ingredients like paracetamol, ascorbic acid, and calcium have gone down recently, giving Haleon some breathing room. Lower costs mean higher profit margins.

Improving margins

With higher sales and lower costs, Haleon’s gross margin is expected to improve to 37% (up from 34% last quarter). Its net margin should also climb to 15%, showing that the company is keeping more profit from every rupee earned.

No dividend expected

For now, Haleon isn’t expected to pay a dividend. Instead, the company seems focused on reinvesting into its operations and products to fuel further growth.

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Big picture

Haleon’s story this quarter is all about smart product launches and cost savings. With consumer demand picking up and raw material prices cooling off, the company is in a stronger position to grow earnings and strengthen its place in the market.

Haleon is growing because it launched new versions of its popular medicines and got lucky with falling costs. Investors may not get a dividend this time, but the company’s improving profits show it’s moving in the right direction.

Source: Optimus Capital Management

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →