Revenue stabilized around $5.5B per quarter with 3.0% growth in 2026Q2, while gross margin expanded to 66.0% and operating margin to 23.8%, driving net margin to 13.6%.
Haleon plc (HLN) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 22.18B | 11.03B | 11.23B | 11.3B | 10.86B | 9.54B | 9.89B | 8.48B |
| Revenue Growth % | 11.52% | -1.81% | -0.61% | 4.09% | 13.76% | -3.51% | 16.65% | - |
| Cost of Goods Sold | 7.93B | 3.83B | 4.29B | 4.34B | 4.28B | 3.6B | 3.98B | 3.68B |
| COGS % of Revenue | - | 34.74% | 38.15% | 38.41% | 39.43% | 37.66% | 40.25% | 43.37% |
| Gross Profit | 14.25B | 6.99B | 6.95B | 6.96B | 6.58B | 5.95B | 5.91B | 4.8B |
| Gross Margin % | 64.25% | 63.35% | 61.85% | 61.59% | 60.57% | 62.34% | 59.75% | 56.63% |
| Gross Profit Growth % | - | 0.57% | -0.19% | 5.84% | 10.54% | 0.68% | 23.07% | - |
| Operating Expenses | 9.39B | 4.43B | 4.74B | 4.96B | 4.75B | 4.31B | 4.31B | 3.9B |
| OpEx % of Revenue | - | 40.15% | 42.21% | 43.93% | 43.77% | 45.18% | 43.59% | 46.05% |
| Selling, General & Admin | 8.65B | 4.36B | 4.33B | 4.29B | 4.04B | 3.79B | 4.22B | 3.6B |
| SG&A % of Revenue | - | 39.56% | 38.57% | 37.94% | 37.18% | 39.74% | 42.66% | 42.41% |
| Research & Development | 617.08M | 308.1M | 298M | 311M | 300M | 257M | 304M | 292M |
| R&D % of Revenue | - | 2.79% | 2.65% | 2.75% | 2.76% | 2.69% | 3.07% | 3.44% |
| Other Operating Expenses | 2M | -243.33M | 111M | 366M | 415M | 262M | -212M | 17M |
| Operating Income | 4.85B | 2.41B | 2.21B | 2B | 1.82B | 1.64B | 1.6B | 897M |
| Operating Margin % | 21.89% | 21.87% | 19.64% | 17.66% | 16.81% | 17.16% | 16.15% | 10.58% |
| Operating Income Growth % | - | 9.34% | 10.52% | 9.37% | 11.42% | 2.5% | 78.15% | - |
| EBITDA | 5.48B | 2.76B | 2.4B | 2.31B | 2.11B | 1.91B | 1.9B | 1.16B |
| EBITDA Margin % | 24.7% | 25.06% | 21.38% | 20.39% | 19.45% | 19.97% | 19.24% | 13.64% |
| EBITDA Growth % | 30.97% | 15.08% | 4.21% | 9.14% | 10.81% | 0.16% | 64.48% | - |
| D&A (Non-Cash Add-back) | 624.86M | 352.11M | 196M | 309M | 287M | 268M | 305M | 260M |
| EBIT | 4.98B | 2.53B | 2.32B | 2.04B | 1.9B | 1.94B | 1.61B | 912M |
| Net Interest Income | -521.06M | -256.26M | -339M | -400M | -278.38M | -3M | -7.69M | -2.55M |
| Interest Income | 187M | 76.29M | 55M | 14M | 68.98M | 13M | 17.95M | 25.51M |
| Interest Expense | 647.12M | 332.55M | 394M | 414M | 347.36M | 16M | 25.65M | 28.07M |
| Other Income/Expense | -730.95M | -260M | -296M | -368M | -207M | -2M | -7M | -11M |
| Pretax Income | 4.12B | 2.15B | 1.91B | 1.63B | 1.62B | 1.64B | 1.59B | 886M |
| Pretax Margin % | 18.59% | 19.51% | 17% | 14.4% | 14.9% | 17.14% | 16.08% | 10.45% |
| Income Tax | 951.82M | 461.66M | 435M | 517M | 499M | 197M | 410M | 199M |
| Effective Tax Rate % | 23.08% | 21.45% | 22.77% | 31.76% | 30.84% | 12.04% | 25.77% | 22.46% |
| Net Income | 3.15B | 1.63B | 1.44B | 1.05B | 1.06B | 1.39B | 1.15B | 655M |
| Net Margin % | 14.18% | 14.78% | 12.84% | 9.28% | 9.76% | 14.56% | 11.58% | 7.72% |
| Net Income Growth % | 48.36% | 13.07% | 37.46% | -1.04% | -23.74% | 21.4% | 74.81% | - |
| Net Income (Continuing) | 3.17B | 1.64B | 1.48B | 1.11B | 1.12B | 1.44B | 1.18B | 687M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 59.64M | 58.9M | 58M | 123M | 126M | 125M | 111M | 91M |
| EPS (Diluted) | 0.71 | 0.36 | 0.32 | 0.24 | 0.24 | 0.30 | 0.24 | 0.14 |
| EPS Growth % | 51.12% | 12.5% | 33.33% | 0% | -20% | 25% | 71.43% | - |
| EPS (Basic) | - | 0.36 | 0.32 | 0.24 | 0.24 | 0.30 | 0.24 | 0.14 |
| Diluted Shares Outstanding | 4.46B | 4.51B | 4.59B | 4.63B | 4.62B | 4.62B | 4.62B | 4.62B |
| Basic Shares Outstanding | 4.44B | 4.48B | 4.57B | 4.63B | 4.62B | 4.62B | 4.62B | 4.62B |
| Dividend Payout Ratio | - | 36.71% | 39.53% | 36.99% | 253.02% | 82.59% | 207.07% | 175.88% |
Quick answers to the most common questions about buying HLN stock.
For fiscal year 2025, Haleon plc (HLN) reported total revenue of $11.03B. This represents a 30.1% increase compared to $8.48B in 2019.
Haleon plc (HLN) is profitable, generating $1.63B in net income for the fiscal year ending 2025 with a net profit margin of 14.8%.
Haleon plc (HLN) reported an operating income of $2.41B, resulting in an operating profit margin of 21.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Haleon plc (HLN) generated $6.99B in gross profit for the year, representing a gross profit margin of 63.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory and shareholder overhang
Stabilizing Revenue Amid Portfolio Reshaping
Haleon's revenue has stabilized around $5.5B per quarter, with the latest quarter showing 3.0% growth, a rebound from the -3.8% decline a year earlier, according to recent financial statements.
The sequential stabilization suggests that the divestment of non-core brands and the focus on Power Brands may be offsetting volume losses. However, the absence of explicit guidance in the latest earnings report indicates management's caution about near-term visibility, and investors should monitor whether this growth can be sustained without the contribution of divested brands.
Gross Margin Expansion Drives Profitability
Gross margin improved to 66.0% in 2026Q2 from 61.4% in 2024Q4, as reported in the income statement, reflecting pricing power and cost efficiencies that outpace peers like Kenvue.
The 460 basis point expansion over six quarters suggests that Haleon's premium positioning and clinical endorsement moat are translating into pricing power. This margin expansion is a key differentiator versus Kenvue's 58.1% gross margin, and it provides a buffer against input cost inflation. However, the sustainability of this trend depends on the company's ability to maintain professional recommendation rates and fend off private label competition.
Operating Leverage Emerging from Cost Discipline
Operating margin expanded to 23.8% in 2026Q2 from 19.0% in 2024Q4, as per the latest financials, indicating that SG&A growth is lagging gross profit growth, a sign of improving operating leverage.
The 480 basis point improvement in operating margin, despite relatively flat revenue, suggests that the company is successfully stripping out stranded costs from its spin-off. This is a positive signal for shareholders, as it implies that the standalone cost base is becoming more efficient. However, the recent uptick in SG&A in absolute terms warrants monitoring to ensure that A&P investments are being deployed efficiently.
Earnings Quality Bolstered by Margin Gains
Net margin reached 13.6% in 2026Q2, up from 12.9% in 2024Q4, while EPS grew 18.8% year-over-year in 2025Q4, according to reported figures, indicating that profitability improvements are flowing to the bottom line.
The improvement in net margin is driven by operational gains rather than one-off items, as SBC appears minimal in recent quarters. However, the 2023Q4 net margin of 6.5% was an outlier, likely due to separation costs, and the normalized trajectory is more favorable. Investors should note that the absence of SBC in some quarters may be a data artifact, but the overall earnings quality appears solid.
COGS Efficiency Offsets SG&A Investment
COGS as a percentage of revenue fell to 34.0% in 2026Q2 from 38.6% in 2023Q4, based on the income statement, while SG&A remained stable, indicating that cost of goods sold is the primary driver of margin expansion.
The reduction in COGS suggests that Haleon is benefiting from supply chain optimization and favorable input costs, which may be a result of its standalone operations. SG&A has been relatively flat, indicating that the company is maintaining A&P investment while controlling overhead. This balance is crucial for sustaining brand equity and market share, but investors should watch for any future cost inflation that could reverse this trend.
Revenue Stagnation and Regulatory Overhang
Despite margin expansion, revenue growth has been negative in several quarters, with a -1.8% YoY decline in the latest period, and the FDA's ruling on phenylephrine could pressure respiratory sales, as noted in recent filings.
The flat revenue trajectory raises questions about the sustainability of margin-driven earnings growth. If volume declines persist, the company may face operating deleverage. Additionally, the regulatory risk to the respiratory portfolio and the ongoing shareholder overhang from Pfizer and GSK could continue to weigh on the stock. Short-sellers might argue that the market is overpaying for a company with limited top-line growth and potential legal liabilities.