Hello, and welcome to our half-year results presentation. We're continuing to make good progress against our win-is-won strategy and our strategic priorities of delivering competitive growth in our categories, unlocking productivity gains, and embedding an agile performance-focused culture. In the first half, organic revenue was up 2.6%, with sequential improvement in the second quarter, where organic revenue was up 3.1% in a challenging consumer and macro environment. Growth in the quarter was balanced, supported by volume mix of 1.4%. That reflects the targeted actions we are taking across the business to drive improved performance. In North America, we're continuing to make meaningful progress. We're improving our execution and delivering stronger share gains. We are seeing early signs of underlying market improvement. In our emerging markets, momentum improved through the quarter. We're delivering double-digit growth in oral health, digestive health, and skin health. And China, India, and Latin America all delivered strong growth. Europe continued to be impacted by a challenging market backdrop. We've delivered modest growth and a declining market. You'll hear more from Dawn on Europe in a minute. Encouragingly, our competitive performance remains strong. 73% of the portfolio gained or maintained market share. That reflects the continued relevance of our brands to consumers around the world and demonstrates our ability to compete effectively in the categories we operate in. We made strong progress on our productivity agenda. In the first half, our initiatives delivered 140 basis points of constant currency gross margin expansion and 8.2% adjusted operating profit growth. Cash generation remains strong, with healthy investment in the business to drive future growth. At the same time, we continue to return surplus cash to shareholders through dividends and buybacks. Looking ahead to the second half, we remain focused on driving competitive growth and delivering against our commitments. This will be achieved through the improvements we're seeing in North America, the encouraging performance in our emerging markets, and the opportunity to unlock growth and agility through our new operating model. As a result, we're reaffirming our full-year guidance of 3-5% organic revenue growth and and high-single-digit operating profit growth. Taking a step back, it's been a year since we launched our win-is-won strategy at Capital Markets Day, where we set out our medium-term ambitions and defined our strategic priorities of growth, productivity, and culture. I'll now take each strategic priority in turn and update you on the progress we're First, growth. While our current growth is competitive and we're gaining share, it's below our medium-term 4% to 6% expectation. Q2 marks an improvement on Q1, but there is clearly more to do. And we are taking decisive steps to strengthen performance and drive stronger volumes across the business. Let's take North America, where we are focused on driving growth at the bottom end of our medium-term guidance. The targeted action plan we set out at full year is showing real progress. Growth is accelerating, execution is improving, and we're delivering an increase in share gains. We have achieved this through stronger retail execution and enhanced in-store activation during the World Cup, as well as continued progress on e-commerce. Innovation is delivering. Sensodyne Clinical Repair, Centrum Age to Phi, and Excedrin Rapid Relief are all driving category growth. In fact, Sensodyne Clinical Repair, which we launched in January, is the third pillar of our clinical platform in the U.S. and is driving significant share growth. In e-commerce, we're growing double-digit, twice the rate of the market. As I mentioned in February, we are building dedicated GLP-1 cross-category shelves across oral health, digestive health, and VMS. That positions us to capture a disproportionate share of the opportunity. It is still very early days, but we are optimistic about the potential here. Turning now to emerging markets, a growth engine, which we expect to deliver high single-digit growth over the medium term. We saw a stronger second quarter across our emerging markets, with growth up 6.3%. That was underpinned by good momentum in China, India, and Latin America, partially offset by the expected impact of the conflict in the Middle East, which typically grows high single- digit but was broadly flat in the second quarter. In China, we see significant opportunity for growth, supported by strong consumer health trends, accelerating digital engagement, and continued innovation across our portfolio. Let's take e-commerce, which represents around 40% of our revenues in China. We are investing a healthy rate in the high-growth digital channels, including Douyin, which is now over 10% of our e-commerce business and growing at over 100%. Doyin is helping us drive trial, repeat purchase, and brand engagement through social content and influencer activation. We plan to increase investment in Doyin in the second half, and we have a strong pipeline of innovations designed to meet the evolving consumer needs for this channel. Now turning to India, one of our most important growth engines. India continues to deliver sustainable double-digit growth up in the mid-teens for the quarter. Oral health is a significant driver of growth in our India business, the second-largest market for Sensodyne globally, growing at over 20% in the first half. We are successfully driving penetration with lower-income consumers. We started this two years ago through our 20-rupee access packs, which are now gaining real momentum and making up 40% of the tubes sold in the first half. Our strong delivery goes beyond access. We launched Pronamel and Pronamel Kids at the start of 2026, broadening our reach from consumers over 35 to the full age range, with science-backed products that help consumers build strong enamel. Toothbrushes are also an important part of our business. 70% of consumers who enter through the brush franchise are new to Sensodyne. That is driving nearly 230 basis points of share gains in the toothbrush market, taking our share to 13%, supported by media activation and expert endorsement. To support the oral health growth in India, we are investing £175 million in a new manufacturing site. to meet growing consumer demand and drive stronger productivity. We are also seeing good momentum in Centrum. Centrum Recharge, priced at 10 rupees, continues to recruit new consumers. Here, we have leveraged our rural distribution and regional activations to drive strong in-store visibility. This has driven strong consumer uptake since we launched last year. In Latin America, while there's still more to do, we are encouraged by the good progress we're making from the targeted actions we've taken to drive growth. In oral health, we have optimized pricing in Brazil, which has accelerated Sensodyne volume growth and consumption. We are also developing more accessible Sensodyne offerings for lower-income consumers. These new offerings are gaining traction, and we are delivering 50 basis points of share growth in Mexico. We are scaling that into Brazil where Sensodyne Pilot in Sao Paulo is performing well. Our World Cup in-store activation delivered good results. Eno saw a significant uplift in consumption versus typical daily levels over the tournament. And finally, new launches are performing well. For example, Advil Gripa Max in Colombia is resonating well with consumers. It's helping expand the category and deliver double-digit consumption growth and over 140 basis points of market share gains. Now turning to productivity, where we have continued to make excellent progress against our 800 million pound gross cost savings program. These savings are generating capacity to invest behind growth, innovation, and capabilities, while supporting the delivery of high single-digit operating profit growth. A key driver of this is our simplification program. To date, we have reduced SKUs by 27% and formulations by 26% and continued packaging optimization. These actions are making the business simpler to run, and they're helping teams focus more sharply on the biggest growth opportunities. At the same time, we're investing in new capabilities, including AI and digital twins, to improve speed, resilience, and decision-making across our supply chain and our broader operations. And our investment in new manufacturing facilities in India and China will further enhance productivity, strengthen resilience, and support our long-term growth ambitions. And finally, culture. Our new operating model is now largely embedded across the organization. It's bringing us even closer to our consumers, shaping a culture that will help us deliver on our strategy and our financial commitments.
We have already seen early benefits in North America, where implementation took place at the start of the year accountability is clearer execution is sharper and teams are now moving at greater pace i'll now hand over to dawn to run you through the first half results in more detail thank you brian we made good progress in the first half of 2026 we delivered strong adjusted operating profit growth of 8.2 percent at constant currency and free cash flow of £769 million in line with our value creation framework. Gross margin improved 140 basis points at constant currency underpinned by our productivity programme. A&P grew broadly in line with revenue resulting in strong drop-through to operating margin. This increased 120 basis points at constant currency, or 160 basis points at actual rates. Cash generation was also strong, and we continued our track record of disciplined capital allocation, returning £893 million to shareholders. We also announced two capital investments in the half for manufacturing sites in India and China, reflecting the long-term growth opportunities of these markets. There is more to do to drive organic revenue growth, which was 2.6% for the half. While this is below our medium-term guidance, we continue to deliver against our value creation framework, driving operating leverage, strong free cash flow, and disciplined capital allocation. In particular, the quality of our EPS has significantly improved, with most of the delivery coming from operating profit. looking at the performance in more detail starting with revenue organic revenue growth for the half was 2.6% split 2.1% price and 0.5% from volume mix in Q2 we delivered 3.1% growth and a more balanced price and volume mix with 1.7% price and 1.4% volume mix. We continue to deliver strong volume mix growth in oral health and Asia-Pacific with stronger execution in North America and an improvement in VMS which overall was partially offset by weaker volumes in Europe and the Middle East. Turning to profit. Operating profit grew 9.7% at actual rates, representing a margin of 24.3%, up 160 basis points. This included a translational FX benefit of 40 basis points, driven by the strength of sterling, euro and several emerging market currencies. The key driver was continued excellent progress on supply chain productivity, with further reductions of SKUs and formulations, increased equipment effectiveness and network optimisation. AI continues to be a driver of efficiencies, with analytics enhancing quality and reducing line stoppages, as well as helping to reduce complexity and cost in harmonising packaging and formulations. The strength in gross margin enabled us to continue to invest in our core portfolio, innovation and key growth markets. We increased A&P spend by 3.2% at constant currency to 20.9% of sales. We are focused on maximising the efficiency and effectiveness of our spend through media quality, precision targeting and social first. In terms of our categories, Oral Health remained a standout performer, delivering 6.2% growth in the second quarter and 7.3% in the half, more than twice the market growth, driven by double-digit growth in Sensodyne and Peridontax. DenshiCare also performed well, driven by the successful launch of Ultimate All-in-One in Japan. VMS improved in the second quarter to 2.2% with 1.9% growth in the half, driven predominantly by the US and China. In the US, Centrum delivered mid-single-digit growth, driven by shelf resets and the launch of Age Defy. In China, Centrum Daily Kits and Caltrate Kids Liquid contributed to high single-digit growth. Within OTC, pain relief grew strongly at 4.6% in Q2, taking the first half to 2.1%. Performance was driven by major consumer activations, including the London Marathon and UEFA Champions League, alongside innovations such as Excedrin Rapid relief. Volterran 2% gel delivered exceptional growth in China, driving the brand's highest ever market share in the country. Panadol outperformed the market, driven by geographic expansion of dual action and the activation of Optisorb technology. Respiratory health declined 6.5% in the second quarter and 4.7% in the half. This reflects a weaker cold and flu season. Across other parts of respiratory, Otravine grew with Otravine nasal mist now in 18 markets. Allergy was broadly flat with a strong early start which tailed off in the second quarter. The US smokers health business showed improvement in the second quarter but remains a drag. Digestive health grew 5.5% in Q2 and 2.4% for the half, with strong innovation helping Tums outperform the market by almost 2.5 times. And Benefiber saw strong growth due to media activations both of which were partially offset by declines in nexium now looking at the regions in north america whilst we have seen some market improvement u.s consumers remain cautious in the quarter organic revenue accelerated to 3.1 percent split 1.1 percent price and 2 percent volume mix taking the half to 2%, split 2.5% price and 0.5% decline in volume mix. Volume growth was broad-based in the quarter across all categories except respiratory. As mentioned in the category summary, oral health, centrum and digestive health all saw good growth. For the half, adjusted operating margin increased to 23%, up 270 basis points at constant currency, driven by strong gross margin expansion. In EMEA and Latin America, organic revenue in Q2 grew 1.7%, split 3.5% price, offset by a 1.8% decline in volume mix. And for the half, organic growth was 1.9%, split 3% price and a 1.1% decline in volume mix. In Europe, the overall market saw low single-digit volume declines. In this context, we continued to outperform the market, driven by strength across our oral health and pain relief. In the Middle East and Africa, geopolitical uncertainty weighed on our second quarter performance, which was broadly flat. We saw strength in Sensodyne, as well as innovation launches across Volterran and Panadol, which was offset by double-digit revenue declines in the United Arab Emirates and Pakistan. This region continues to remain challenging. Latin America in the second quarter was more encouraging and was up high single digit, benefiting from stronger execution with Sensodyne and Eno performing well. In the half, adjusted operating margin was 28%, increasing 160 basis points at constant currency, driven by supply chain productivity. Finally, in Asia-Pacific, we are seeing consumers adopt a digital-first approach, which is more discovery-led, supported by digital platforms, content and increasingly AI-enabled tools. These are areas where we continue to increase investment, particularly in China. In Q2, organic growth was 5.4%, split 6.1% volume mix and a 0.7% declining price. Pricing was slightly impacted by higher hospital channel growth, driven by participation in China's volume-based procurement programme. For the half, organic revenue grew 4.7%, with 4.9% growth in volume mix, partly offset by a 0.2% decline in price. Overall, China growth accelerated in the second quarter to high single-digit, supported by oral health, pain relief and VMS, partially offset by weaker respiratory health demand for cold and flew products. India also accelerated in Q2, delivering mid-teens growth, driven by expanded distribution and strong in-market execution. For the half, adjusted operating margin was 24.6%, up 160 basis points at constant currency, reflecting strong operational execution and productivity benefits. Let's now look at the remaining drivers of earnings. Adjusted diluted EPS grew 12%. In addition to the operating profit drivers I have shared, EPS growth was also driven by a lower net interest charge from a reduction in net debt, An increase of 140 basis points in our effective tax rate to 25.9%, driven by discrete items which are expected to reverse in the second half. And a 1.6% reduction in average share count, benefiting from the share buybacks in 2025 and 2026. Adjusting items were £192m, up £152m year on year, driven primarily by restructuring costs associated with the operating model transformation. We continue to expect the programme to deliver £175m to £200m of annualised gross savings over the next two years one-off implementation costs are expected to be broadly equivalent to the annual savings with the majority recognized in the first half moving to cash Haleon is a highly cash generative business we delivered 769 million pounds of free cash flow an increase of 35 million pounds versus the prior year. This was due to strong operating profit and further reductions in working capital of five days compared to the first half of last year. This was due to payables optimisation. Net capital expenditure increased to £140 million, reflecting investments in systems, processes and automation to support sustainable long-term growth alongside initiatives to drive productivity our capital allocation policy remains unchanged in line with that our dividend policy is to pay one-third of the prior year total dividend as an interim and the board has declared an interim dividend of 2.4 pence per share, a 9% increase on the prior year. Before moving to the outlook, let me briefly walk through our new reporting structure. Full details, including historic proformas, are provided in the appendix to the presentation. North America is largely unchanged, apart from a modest impact on operating margin due to the reallocation of R&D investment under the new structure. We have introduced a new international segment, which is made up of our three smaller operating units, LATAM, India's subcontinent and the Middle East and Africa. This means Europe is now reported separately, and Asia-Pacific no longer includes India's subcontinent. This new reporting structure better aligns with the way that we manage the business, and highlights the growth opportunities across our key markets. We will report on this basis moving forward. Now let me turn to our outlook for 2026. As Brian mentioned, we expect to deliver organic revenue growth within the 3% to 5% range and high single-digit adjusted operating profit growth at constant currency, driven by continuing benefits from our supply chain productivity program and higher SG&A savings from operating model changes. These will be partially offset by higher input costs from the conflict in the Middle East. This enables flexibility and agility in our P&L to continue to invest behind our brands and in future capabilities. And with that, I'll now hand back to Brian.
Thank you, Dawn. So, to sum up, we delivered a sequential improvement in growth in the second quarter against a challenging consumer and macro environment. Our financial performance was strong. We benefited from the excellent progress we've made on productivity, which has driven strong profit growth. We continue to make progress against our win-is-won strategy and our strategic priorities of growth, growth, productivity, and culture. I remain confident in the opportunities ahead, to deliver our medium-term guidance of four to six percent annual organic revenue growth with high single-digit adjusted operating profit growth at constant currency. Thank you for your continued support and interest in Halion.
