“Today I am pleased to announce a set of actions to significantly sharpen our portfolio and simplify our organisation for accelerated growth and value creation. This follows a thorough review of our portfolio against the three principles I set out in October 2023*.
We delivered H1 broadly in line with our expectations. Hygiene grew mid-single-digit LFL net revenue and delivered volume growth despite a more competitive market environment. Health delivered broad-based revenue and volume growth, reduced by softness in seasonal OTC brands.
The investments we have made in innovation are driving growth across our brands, and our industry-leading gross margins have funded both increased brand investment and an attractive adjusted operating margin. We grew free cashflow by 8% and increased cash returns to shareholders by 100%.
Short-term disruption to our Nutrition business, which performed above expectations in H1, due to the Mount Vernon tornado has caused us to reduce our net revenue growth outlook for the year to +1% to +3%.
Notwithstanding this, our business remains resilient. We expect revenue growth to accelerate in H2 and continue to target operating profit growth ahead of net revenue growth.
We also announce that we will further increase returns to shareholders through an increase in our dividend and our next share buyback programme of £1bn over the next 12 months.”
*details set out in a separate RNS.
Kris Licht
Chief Executive Officer
