The UK-headquartered multinational said it has a “strong forward pipeline” of lower income offerings for the next 24 months.
It announced the above during its FY25 first half results presentation on July 31.
The growing focus on lower income consumer segments comes amid headwind in the US market, which the company said was facing challenge from challenging market environment and reduced footfall to the pharmacy channels. Asia-Pacific and Europe, on the other hand, remained resilient.
One of its recent launches for lower income consumers was Centrum Recharge, which was introduced to the Indian market in April.
This is a multivitamin energy drink mix priced at 60 rupees (US$0.68) per box of six sachets. It contains vitamin B9, B12, C, manganese, magnesium, and zinc.
Elsewhere in the Philippines, the company has expanded its reach to children from lower income families with Centrum Kids.
The zinc and vitamins gummy is sold at 135 pesos (US$2.31) for a packet of 15 gummies on omnichannel pharmacy chain MedsGo.
Haleon CEO Brian McNamara said there would be more products launched in the next two years for lower income consumers.
“We’re also innovating to develop new and more tailored offerings for lower income consumers. In April, we launched Centrum Recharge in India. This new product taps into the need for affordable multivitamins that focuses on energy and are priced at Rs10 (US$0.17).
“Consumer feedback has been strong. In the Philippines, we’re focusing on the wellbeing of children in lower income families through Centrum Kids, cementing Centrum’s number one position in the country.
“And we have a strong forward pipeline of other lower income offerings to come in the next 24 months,” McNamara said.
Responding to analysts’ queries during the Q&A session, he said the Centrum brand has been facing challenges in markets such as the US, due to various reasons such as subdued consumer spending and reduced pharmacy traffic.
“Centrum is clearly facing headwinds in the US. We want to grow still and it is a big focus for us going forward,” he said. For instance, Centrum Silver will be introduced with the new claim “slow cognitive aging by 60%” in the US.
Haleon’s vitamin, minerals, and supplements (VMS) revenue was up 0.9% to £833m (US$1.1bn) for the first half of FY2025.
Its total revenue, including its VMS, oral, respiratory, digestive health, pain relief, and therapeutic skin health was up 3.2% to £5.48bn (US$7.25bn) for the period.
APAC’s volume-led growth
In Asia-Pacific (APAC), much of the firm’s revenue growth was volume-led.
“In Asia-Pac, we saw an acceleration in growth in Q2 to +5.9%, with two-thirds of the growth coming from volume.
“We continue to drive category growth and broaden our reach to lower income consumers, revenue grew 5.0% for the half, 1.7% from price and 3.3% volume/mix,” said CFO Dawn Allen.
India, for instance, had close to double-digit growth in during the first half of FY25.
This was led by low price items such as Centrum Recharge and Sensodyne 20 rupees (US$0.23) pack, as well as expanded distribution across rural communities.
“India is a good example of how we are expanding our route to market and leveraging our local knowledge and presence. During the half, we have more than doubled our direct coverage of small towns,” said McNamara.
Elsewhere In China and South Korea, the company launched premium innovations such as Centrum Daily Kits during the quarter.
Centrum Daily Kits is a set of personalised daily nutrition targeting different genders and life stages, such as men and women in their 30s and 40s.
“China also saw good, mid-single digit growth, with strength in Oral Health and VMS underpinned by innovation and distribution build. Our e-commerce business is a particular highlight, which is over one third of revenue and is growing high teens,“ said Allen.
South East Asia and Taiwan also performed well with strength across Centrum particularly in the Philippines.
Across the entire APAC, the Centrum brand recorded a double digit revenue growth in Q2.
