Haleon: A Great Consumer Staples Add

Jan. 31, 2023 1:10 PM ETHaleon plc (HLN), HLNCFCL, GLAXF, GSK, PG9 Comments
Yannick Frey profile picture
Yannick Frey


  • Haleon's consumer brands are strong, and its free cash flow margin is high at 16%.
  • Net debt to EBITDA is expected to decrease to 3x in 2024.
  • Although the decline in the value of the pound has had an unfavorable effect on net debt, the company is using free cash flow to reduce its level of debt.
  • The stock is recommended buying since Haleon expects operating earnings growth, has the ability to manage inflationary pressures efficiently, and its valuation is in line with peers.

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Haleon plc (OTCPK:HLNCF) (NYSE:HLN) is an international consumer healthcare company based in England. Haleon is a spin-off from GSK (GSK) in July 2022. It is the world's largest

Data by YCharts

Broad based growth across categories - Haleon's third quarter 2022 presentation

Broad based growth across categories (Haleon's third quarter 2022 presentation)

Vitamins, minerals & supplements growth figures - Haleon's 3Q22 investor presentation

Vitamins, minerals & supplements growth figures (Haleon's 3Q22 investor presentation)

Bond debt maturity profiles - Haleon's 3Q22 investor presentation

Bond debt maturity profiles (Haleon's 3Q22 investor presentation)

Data by YCharts

This article was written by

Yannick Frey profile picture
Yannick is a passionate investor from the Netherlands who shares his analyses with other investors on Seeking Alpha. In doing so, he looks for companies with the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.He prefers steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HLN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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