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| Statement |
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| But we feel really good about where we ended for the full year and the choices we made |
| And we remain well positioned to deliver our 2024 and our medium-term guidance |
| I feel really confident about the year ahead |
| And secondly, that we can grow operating profit ahead of the rate of sales growth in 2024, even in an environment out there where people might be putting more money back into A&P that they had taken out earlier |
| One we're very confident in the 4% to 6% sales growth guidance but we're also very confident in being able to grow organic profit ahead of the rate of sales growth |
| And actually, that helps us that we will be able to be -- to continue to be competitive in still a difficult market environment where in some places, we have seen volumes declining, and we have to battle for the volume growth that also we're committed to get |
| We did 6.5% sales growth cycling over tough comps with some volume growth as well, right? And then again, that's the strength of the portfolio geographically and from a product mix point of view that the categories give us |
| It's been another successful year of delivery for Haleon, building on our track record as a stand-alone company |
| Very proud of some of the innovation that went and you look at the US market where we launched Sensodyne Active Pronamel Shield, year two of Sensodyne Sensitivity & Gum the two biggest innovations in the US toothpaste market |
| So we feel good about the innovation |
| We've seen great results we had last year on VMS trials on Centrum other things we have done |
| So, all of that with the productivity program and gross margin going up, gives us confidence that we'll have operating leverage also in 2024 |
| And obviously we've done the deal on sexual health which is in a way an Rx-OTC switch is a direct to OTC and we're excited about that opportunity there |
| Sensodyne had a weaker half one last year and started to perform very well in the second half of the year, so we go with good momentum into the year |
| And actually, we continue to invest in VMS, and we're able to take share, an example on emergency, which to be showed in the presentation in a declining market, which I think positions us and strengthens us for the future |
| So, we believe also next year we'll be able to do both, grow price and grow volume |
| And then you also -- we have seen very strong and continued success on the other categories in China |
| Our partner is very happy with the performance |
| We're very happy with the performance |
| So for example, in 2023, our A&P investment will find oral health was very strong, and you've seen that come out in results |
| Now -- so 68% of our businesses outside the US and we saw much higher instances in some other geographies, specifically the places like Central Eastern Europe, Japan and Turkey, and we performed quite well in those environments |
| You see that Caltrate and Centrum have done quite well |
| And as we've always said, we try to keep very conscious of how we take pricing because we want to continue to see that volume growth, very proud of 2022 and 2023 and what we've been able to deliver |
| And then overall, listen, we feel good about the performance of our business in Europe, Middle East, Africa, and Latin America |
| Really strong performance on Centrum last year driven by the clinical study, which now we have three different outputs of that clinical study that show that Centrum Silver increases cognitive function by 60% among the population of people 60 and older |
| So overall, the big switch was done, executed successfully and I think now really see that as a growth driver for us in the future as well |
| But overall, we feel good about the makeup of the business |
| But overall we feel very good about that market and our business there and it grew at healthy double-digits in 2023 |
| So very proud of the way our China organization will react from a supply chain demand quadrupled overnight and we're able to really react and help meet that demand |
| And also they started the year with very strong momentum, yes |
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| That's already incorporated into our Q1 guidance, which we said will be slightly below our full year 4% to 6% guidance |
| And that was in a year where gross margin was actually down in percent of sales |
| environment, it's been a bit tougher environment in the sense that we've seen kind of volume declines in certain categories |
| Now of course there's also transactional losses in that because these markets tend to import |
| As a result, shifting all that over probably sales growth and sales growth into the distribution channel was a little bit lower in Q4 than what you would normally would see |
| So, as immunity category, as we shared, saw a significant decline because of the explosive growth that happened during COVID |
| Now you mentioned that some of the reduction was in respiratory but did not prevented you from outperforming your peers |
| We did see some volume declines there, as you noted |
| Now in the US, in the back half, our business was basically flat in respiratory, but the market was down kind of mid to high single-digits |
| We've given you the M&A building blocks which is down 1% and 3% that gives you another about 40 bps of margin that is negative |
| So what happened during COVID in that population, an older population less disposable income as social occasions went down, the usage of the category went down |
| So place like Latin America, you would see a bit more volume decline, and it links a little bit to Tobias' point also in the hyperinflation comments in Argentina |
| But my question is on your margin bridges you talked about operating leverage let's say the plus 50 basis points -- 60 basis points this year and then you have the negative effects |
| and across Europe is challenging, but we believe that we have still the ability to take price |
| And also from a phasing point of view, I think, in the back of my deck you see, I mean, remember Fenbid, but not all the Fenbid growth last year is going to disappear again, because Fenbid came back from a reduced use, because it was blocked for sales before |
| Can you talk about your ability to price and what kind of regions or quantum of pricing we should be looking forward as additional pricing in 2024, if any? And then lastly, can you talk about the volume performance in EMEA, LatAm, which was negative, as negative as in Q3, one in Q3, there were some, I think, one-off issues |
| And then as you said, within that, there is efficiencies we're always looking to be more efficient in our non-working A&P, and we see that obviously grow slower than overall A&P |
| We didn't have the tailwind from a productivity program |
| But one thing toothpaste actually are very bad for set people with sensitive teeth and we have a product that actually does both, two shades whiter and 24/7 sensitivity protection |
| so that's about a £150 million headwind |
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