Haleon finalizes buyback, cancels 44 million shares

Haleon plc (LSE/NYSE: HLN), a leading consumer health company with a market capitalization of $46.22 billion, has completed an off-market share repurchase, canceling 44,155,844 ordinary shares previously held by Pfizer Inc. (NYSE:PFE) The transaction, finalized today, involved an aggregate purchase price of approximately $170 million. According to InvestingPro data, the company maintains a strong financial health score and generates annual revenue of $14.06 billion.

This buyback has adjusted Haleon’s total issued share count to 9,039,570,075, with 4,080,205 of these shares held in treasury. Consequently, the total number of shares with voting rights now stands at 9,035,489,870. Shareholders and other interested parties are advised to use this figure as the denominator for the calculations required by the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules to disclose their interest in, or changes to their interest in, the company. The stock currently trades near its 52-week high, offering investors a dividend yield of 2.24%.

The repurchased ordinary shares, each with a nominal value of £0.01, have been canceled as part of Haleon’s capital management strategy. The cancellation of these shares is likely to have an immediate effect on the distribution of voting rights among existing shareholders.

Haleon is known for its portfolio of consumer health products across various categories, including Oral Health, Pain Relief, Respiratory Health, Digestive Health, and Vitamins, Minerals, and Supplements (VMS). The company’s well-established brands, such as Advil, Sensodyne, Panadol, and Centrum, are recognized for their trusted science and innovation.

The company’s purpose, as stated, is to deliver better everyday health with humanity, focusing on long-standing brands underpinned by trusted science and deep human understanding. Today’s announcement is part of Haleon’s ongoing efforts to manage its capital effectively and enhance shareholder value. InvestingPro analysis reveals the company maintains an impressive gross profit margin of 61.85% and shows consistently low price volatility. For detailed insights and additional ProTips about Haleon’s financial health and market position, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This news is based on a press release statement and reflects the company’s latest financial maneuverings as reported to the Securities and Exchange Commission.

In other recent news, Haleon plc has published its Annual Report and Form 20-F for the year ending December 31, 2024, offering a detailed overview of its financial performance. Investors can access these documents through Haleon’s website and the National Storage Mechanism. In another development, Haleon completed a share buyback from Pfizer, acquiring 44,155,844 ordinary shares for approximately £170 million. This transaction is part of a larger £500 million repurchase plan for 2025, with the acquired shares set to be canceled, reducing Haleon’s outstanding shares.

Additionally, Haleon reported executive share acquisitions, with top executives Adrian Morris and Tamara Rogers each acquiring 31 ordinary shares, aligning their interests with shareholders through the company’s Share Reward Plan. In the realm of analyst activity, HSBC downgraded Haleon’s stock rating from Buy to Hold, maintaining a price target of GBP4.20. This change follows a significant rise in the company’s share value, which increased its forward price-to-earnings ratio.

HSBC analyst Jeremy Fialko noted that despite the downgrade, Haleon’s business fundamentals and product portfolio still hold potential for growth. However, the current valuation reflects these positive attributes, limiting potential upside. These recent developments provide investors with important insights into Haleon’s financial strategies and market position.

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