Updated version 2 - Haleon shares fall in the UK due to weak flu season and setbacks in the Chinese market, leading to lowered performance expectations

The full text has been supplemented with stock price data, background information, and charts.

Reuters, October 29 - UK consumer health group Haleon (HLN.L) on Thursday lowered its annual revenue growth forecast to below market expectations, mainly due to weak demand for cold medicine and setbacks in Chinese market regulation, resulting in a nearly 14% drop in its share price.

• The company, which manufactures Advil painkillers and Sensodyne toothpaste, now expects full-year organic revenue growth of about 2.5%, down from its previous guidance of 3% to 5%. According to an analyst survey compiled by the company, the market previously expected 3.2%.

• In the three months ended September 30, organic revenue grew by 2.6%, below the expected 3.2%. Weaker consumption of cough, cold, and flu medicines affected order volumes in Haleon's largest market — North America.

• In China, an important market, Haleon's sales were dragged down by a change in raw material classification, which impacted imports of the over-the-counter "Centrum" multivitamin.

• The company also noted that accelerating the implementation of its Brazil strategy to respond to Brazil’s new tax framework will reduce net revenue in the fourth quarter by £15 million to £20 million ($20 million to $27 million).

• In early trading, the company’s share price led the declines in both the European STOXX 600 index .STOXX and the UK FTSE 100 index .FTSE.

https://www.reuters.com/graphics/HALEON-STOCKS/gdvzggmrqpw/chart.png

(1 US dollar = 0.7503 British pounds)

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