HALEON (HLN) SHARES: 2025 PERFORMANCE IN UK, KEY DRIVERS, MILESTONES AND RISKS —'26 OUTLOOK

How did Haleon shares perform in 2025?

In 2025, Haleon plc (LSE: HLN), the UK-based consumer healthcare giant, experienced a year marked by moderated share price movement, steady revenue growth, and evolving investor sentiment. The company, which was spun off from GSK in July 2022, continues to build momentum in its standalone identity, focusing on over-the-counter (OTC) health brands such as Sensodyne, Panadol and Voltaren.

After a relatively flat 2024, Haleon’s share price began 2025 at around 330p and closed the year at approximately 360p, delivering a modest annual return of around 9%. This performance was generally in line with broader FTSE 100 trends, reflecting resilience amid uncertain macroeconomic conditions and cautious investor appetite.

Revenue growth in 2025 hovered around the 4–6% range, driven by strength in emerging markets and continued demand for its power brands. Adjusted operating margins improved marginally due to stronger cost discipline and supply chain optimisation, resulting in a slight bump in earnings per share (EPS).

Significant milestones influencing Haleon’s 2025 share performance included:

• Successful product launches – An expanded Panadol range and innovations in oral health supported top-line growth across Europe and Asia-Pacific.
• Digital acceleration – Increased investment in digital commerce platforms and consumer engagement tools helped the company better connect with younger demographics.
• Zantac litigation clarity – Further favourable court outcomes in the United States regarding long-standing Zantac lawsuits helped reduce legal overhang on the stock.

The broader market also took note of Haleon’s strong sustainability agenda in 2025, with increased scores on environmental, social and governance (ESG) indices providing a reputational boost. Nonetheless, investor comfort remained somewhat cautious amid concerns about rising input costs and global inflationary conditions, despite their slower pace compared to 2023–2024.

The pound sterling's relative stability throughout 2025 helped support international earnings when translated into GBP – a key factor for Haleon, given that more than 60% of its revenue stems from non-UK markets.

Overall, Haleon's 2025 can be summarised as a year of consolidation with incremental progress, as it focused on delivering operational consistency and brand differentiation rather than aggressive expansion or major restructuring.

What are Haleon’s key growth drivers?

Haleon’s position as one of the world’s leading consumer health companies gives it significant exposure to long-term secular trends. Its future growth trajectory in the UK and globally is largely influenced by a few strategic drivers that are likely to remain central into 2026.

• Aging population and self-care growth – With more consumers opting for preventive health and self-care, Haleon’s OTC portfolio is well-placed to benefit from demographic shifts, especially in aging societies like the UK and continental Europe.
• Emerging markets expansion – Continued penetration in high-growth markets such as India, Brazil, China, and Indonesia has contributed positively to 2025 sales and is expected to remain a tailwind moving into 2026.
• Premiumisation and innovation – From high-end oral care SKUs to advanced pain relief solutions, the ability to premiumise existing product lines and launch differentiated products under trusted brand names remains key to margin growth.
• Digital transformation – The company’s increased investment in AI-powered consumer engagement and e-commerce platforms is beginning to pay off, with digital sales representing a larger portion of revenue compared to 2024.
• Brand loyalty and recognition – Haleon's brands such as Advil, Centrum, and Otrivin command strong loyalty, providing resilience in both inflationary periods and economic downturns, where discretionary healthcare consumption tends to remain stable.
• ESG and sustainability positioning – Sustainability initiatives, particularly in recyclable packaging and carbon footprint reduction, align with growing ESG-focused investor criteria, helping attract long-term institutional support.

Moreover, Haleon’s management has consistently reiterated its commitment to disciplined capital allocation, preferring modest acquisitions and brand expansions over large-scale M&A.

Looking ahead to 2026, continued margin improvement, geographic diversification, and innovation in self-medication, especially tied to AI-driven diagnostics and personalisation, could further distinguish Haleon from legacy consumer health competitors.

Additionally, potential strategic partnerships—especially in digital health—and talent acquisition in global markets may further fuel long-term growth initiatives and innovation cycles by 2026.

Overall, these key growth drivers position Haleon to navigate macroeconomic volatility while remaining responsive to shifting consumer behaviour and retail dynamics in the UK and abroad.

What risks and milestones to watch in 2026?

While Haleon enters 2026 with a relatively strong operational base, investors and analysts alike will continue to monitor several important risks and milestones that could influence its share price and strategic direction over the next 12 months.

• Residual legal uncertainty – Although major headwinds from the Zantac litigation have eased, any reversal or new filings could reignite legal risks. Investors will watch closely for updates in both US and European courts.
• Supply chain volatility – Global logistics and shipping routes remain susceptible to disruptions, especially in Asia and the Middle East. Unplanned bottlenecks or rising raw material costs could dampen margins.
• Regulatory scrutiny – Haleon’s expansive portfolio and international presence subject it to ongoing regulatory oversight. Any change in OTC drug labelling laws or product categorisation could impact sales forecasts.
• Currency exposure – With a large proportion of revenue generated outside the UK, adverse foreign exchange fluctuations – particularly a strengthening pound – could pressure reported earnings.
• Competitive intensity – Global consumer health players such as Johnson & Johnson and Procter & Gamble continue to drive competitive pricing in targeted OTC segments. Market share protection will remain mission-critical.
• Macroeconomic headwinds – A higher-for-longer global interest rate environment, weak consumer confidence, or additional geopolitical tensions may affect investor sentiment in 2026 more broadly, even if Haleon maintains a defensive profile.

Milestones to watch that could shift the narrative in 2026 include:

• Q1–Q2 earnings growth acceleration: Signs of progress in margin expansion and market penetration in Asia-Pacific and Latin America would be seen as significant tailwinds.
• Progress on patent lifecycle management: Whether Haleon can successfully extend or renew its market-leading OTC brands will greatly affect long-term cash-flow forecasting.
• Strategic partnerships: Any alliances with tech or digital health disruptors could provide upside optionality and create cross-platform brand synergies.
• Portfolio optimisation: Disposals or acquisitions of non-core brands may be announced depending on market opportunities and balance sheet strength in 2026.

Additionally, there will be significant observation on how Haleon sharpens its capital allocation strategy—resuming or increasing dividend payout, share buybacks, or reinvestment into innovation pipelines could materially change investor perception.

In a post-pandemic environment reshaped by cost-of-living pressures and healthcare system strain, Haleon’s ability to maintain its relevance, trust, and shelf presence through 2026 will likely define its medium-term valuation trajectory.

In conclusion, while Haleon's controlled performance in 2025 offers a stable base, the year ahead will test its agility and management effectiveness amidst external complexities. Long-term investors may continue to view HLN as a steady, defensible play on global health consumerisation, contingent on strategic execution and brand renewal in 2026.