Haleon Q3 2023 TU Earnings Call Transcript

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Provided by Quartr
November 2, 2023

There are 9 speakers on the call.

Operator

Ladies and gentlemen, welcome to the Q3 2023 Results Conference Call. I am Shari, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by a Q and A session. The conference must not be recorded for publication or broadcast.

Operator

At this time, it's my pleasure to hand over to Sonia Gabriel, Head of Investor Relations. Please go ahead, madam.

Speaker 1

Thank you. Good morning, everyone, and welcome to Hillian's conference call for our Q3 trading statement. I'm Sunny Cobreel, Head of Investor Relations, and I'm joined this morning by Tobias Hessler, our Chief Financial Officer. Just to remind listeners on the call that in the discussions today, the company And the company's UK and SEC filings for more details, including factors which could lead to actual results to differ materially from those expressed in Today, we plan to run through some slides before opening the call for Q and A. For those listening on our webcast who would like to ask a question, you can find the dial in details on Page 2 of today's press release.

Speaker 1

As you know, whilst the focus today is on revenue performance, we've also provided group profit and margin detail on both the reported and an adjusted basis. We will fill reconciliation, including for organic revenue growth in our appendix. For information, we do not intend to provide quarterly profit data on an ongoing basis and would only do this for as long as Pfizer reports our results as part of its financial statements and until our registration rights agreement with Pfizer and JFK With that, I'd like to hand the call over to Jovian.

Speaker 2

Thanks, Sonja, and good morning, everyone. Let me first start with our Q1 highlights. As you have seen from our release this morning, we had a good Q3 with 5% organic revenue growth, split 6.6% price And a 1.6% decline in volume mix. This performance was underpinned by continued share gains across our business. Across the quarter, growth was driven by a number of categories, including continued strength in both oral health and pain relief, And it's encouraging to see BMS being back to growth.

Speaker 2

Respiratory also had a good quarter with normal seasonal cold and flu sell in. Digestive Health saw good consumption growth, but our results were negatively impacted by one off inventory movements from some U. S. Retailers. The latter was the primary driver for the volume mix decline in Q3.

Speaker 2

Equally important, we saw continued good operating leverage Inflationary cost pressures more than offset by price and efficiencies across the business resulted in operating margin expansion of 90 basis points. On the back of today's strong numbers, I'm pleased to reiterate that we remain firmly on track to meet our full year guidance To grow organic revenues by 7% to 8%, operating profit 9% to 11% constant currency, Resulting in margin expansion. Finally, it's worth highlighting that we closed the sale of Lamicel in the last couple of days, Earlier than we expected. You'll recall that we announced the sale of the brand with our half year results. This demonstrates our commitment to optimize the portfolio Active Brands Management.

Speaker 2

Now turning to our Q3 results. Revenue of $2,800,000,000 reflected 5% organic revenue growth. SaaS's operating profit was up 8.8% constant currency, resulting in a 24.6% margin, 90 basis points constant currency. As expected, the adverse impact of FX was most pronounced in the Q3 Due to year on year strength in sterling against the U. S.

Speaker 2

Dollar and the movement in a number of emerging market currencies, which negatively impacted margin at actual rates. Looking at the drivers of revenue growth in more detail. We delivered 5% organic sales growth Pricing, 6.6% price and a 1.6% decline in volume mix. Pricing in the quarter included some incremental price As well as the carryover of pricing taken over the last 12 months. As I have said previously, we will continue to take prices needed We remain confident in our ability to do so given the strength of our innovation and brands and market positions.

Speaker 2

Alright, Going forward, this will be at a lower level than seen so far this year. In Q3, we also had a one point benefit from high inflation economies, Turkey and We saw continued volume mix growth in APAC and our oral health business, although overall this was offset by 2 factors. 1, the anticipated decline in emergency, where the category has reverted towards pre pandemic level, It has now stabilized. And 2, the 1 off retailer inventory stock adjustment in Digestive Health in North America. Here, We had an inventory build last year following a temporary supply shortage, which we have now left, and we saw some U.

Speaker 2

S. Retailers Importantly, consumption in Digestive Health continues to see good growth. Including both these impacts, Volume mix would have been flat across the group and I would expect improved volume mix in the 4th quarter compared with what we have reported for Q3 today. Turning now to our performance across the categories. Looking at the quarter, I was particularly pleased that our Health revenues grew 9% With healthy growth in price and volume mix, Sensodyne was up double digit underpinned by continued share gains, Benefiting from innovation and strong growth across a number of markets, including India, Japan, as well as good performance in the U.

Speaker 2

S. EMS is back in growth with continued strong performance of Centrum, which more than offsets the expected decline in emergency. Double digit revenue growth at Centrum was driven by positive price and volume mix helped by geographic expansion and activation in a number of markets. AngelList also delivered good revenue growth, up 6%. With Panadol, driven by strength in the Middle East and Africa And Voltaren growth was underpinned by performance in Europe from new innovations.

Speaker 2

Admiral declined mid single digit, Largely due to more competitive market conditions. Respiratory revenue was up 4% with strong growth in terafluid Robitussin I'm selling ahead of the cold and flu season, which more than offset both the lower out of season use of cold and flu products And a decline in flow and aids following a weak allergy season. Altogether, we demonstrate the strength and the diversity of our portfolio, Delivering 5% organic growth for the group. Let me now move to look at geographic segment performance. Looking across the regions, we saw slightly different trends from one region to another, with strong growth across India and Latin America and Asia Pacific And a slight decline in North America.

Speaker 2

Our Emerging Markets saw 11% growth, which included the benefit from pricing taken in high inflation economies. Emerging markets made up a third of our revenues and included double digit growth in India and broad based growth in other emerging markets. Developed markets grew 2%. Looking at each region in more detail, starting with North America. Organic revenues declined 1.5 percent with a 2.6% price increase and a 4.1% decline in volume mix.

Speaker 2

As I mentioned earlier, this decline in volume mix largely reflected 2 factors. 1st, a one off reduction in brand inventories from retailer stocking movements and second, we expect a decline in emergency. Excluding those due to impacts, volume mix would have been slightly positive. Across the categories, We saw mid single digit growth in oral health led by Sensodyne underpinned by consumption and new innovation including Pro Amyl ActiveShield. EMS increased low single digit with strong components of Centrum that more than offset the declining emergency where demand has now stabilized.

Speaker 2

Centrum benefited from the activation of cognitive function claims on Centrum Silver and the launch of our prenatal plans. Aderly declined mid single digits driven by Advil. Respiratory Health was down low single digits with growth in cold and flu Offsets by a decline in allergy products due to a weak season, resulting in inventories being run down to normalized levels. Finally, Digestive Health and Other fell mid single digit, largely due to a double digit fall in Digestive Health revenue, as I already explained. Moving to Europe, Middle East, Africa and Latin America.

Speaker 2

Organic revenue increased 10.8%, Split 12.7 percent price and a 1.9% decline in volume mix. As you will recall, this region is the most exposed to higher inflation economies, Turkey and Argentina, which had a 3% impact on organic growth. The decline in volumemix was driven by Latin America, Our volumes declined double digit from weakness in Colombia and Mexico, which was more than offset by strong pricing. Looking across the segment, strong growth in Middle East and Africa, held by Canada. In Europe, Revenue was up mid single digit with broad based growth, including strong results in Germany.

Speaker 2

Across the categories, Aura Health saw double digit growth, largely driven by Sensodyne and Denture Care. We're seeing good consumer uptake for a number of brand innovations, including ParaDontax In BMS, the reasons are a low single digit decline Driven by some local brands. And we said that, sales were up strongly, helped by continued activation and strong execution in markets across the region. Pain relief revenue was up double digit, reflecting strong growth from Panadol and a number of successful campaigns, Featuring our specialist ranges and growth in Voltaren. The expiratory sales increased in the mid single digit range, driven by price And the selling of cold and food products ahead of the season.

Speaker 2

We continue to drive innovation in this category and recently launched offering nasal mist, This delivers an improved consumer experience, both comfort, ergonomics and efficacy. Invested Health and Other saw sales up double digit with good growth across most of our brands. Finally, turning to Asia Pacific. Organic revenue increased 5.9% with 2.9% from price and 3% from volume mix. China, Our 2nd largest market overall was up mid single digits after a very strong first half following the easing of COVID related lockdown restrictions, Within China, up mid teens for the 9 months.

Speaker 2

Elsewhere, India grew double digits and Australia and New Zealand was up low single digits. Within the categories, oral health saw high single digit growth underpinned by strong growth in vincadine, particularly India, Japan and China. In VMS, we saw low single digit growth helped by successful consumer complaints for Centrum, partly offset by a decline in culprits. We can relate both hiring saw strong growth particularly in China and Australia. As expected, 10 business revenues declined after extraordinary strong growth in China during the first half and we have ensured inventories have returned to more normalized level.

Speaker 2

Rexpotaro revenues were up double digit, driven by strong growth in TerraFlu. Turning now to our operating performance. Adjusted operating profit was up 9% constant currency, driven by positive operating leverage. Moving at the bridge in more detail, standalone costs were $10,000,000 lower than last year as we run down our TSAs with GSK. I'm pleased to report strong execution with pricing and efficiencies offsetting inflationary cost pressures and negative volume, Resulting in positive operating leverage.

Speaker 2

Importantly, we ensured continued investment in consumer facing A and P We grew ahead of organic growth. Finally, as expected, there was £100,000,000 or 140 basis points headwind from material movements in foreign on a translational basis, which particularly impacted the quarter. Moving together, this resulted in 5% decline in adjusted operating profit at actual exchange rates and a 24.6% margin. As a reminder, Q3 is typically our higher margin quarter in the year given advanced sales of Golden Flu products ahead of the season. This Takes our year to date adjusted operating profit constant currency growth to 9% and a margin of 23%, 10 basis points constant currency.

Speaker 2

As I mentioned earlier, we're pleased To reiterate our confidence in our full year outlook, we continue to expect to achieve organic sales growth of between 7% 8%. We see another year of positive operating leverage and expect adjusted operating profit to grow between 9% 11% constant currency. This will therefore result in adjusted operating margin expansion on a constant currency basis. So to sum it up, Aegon has delivered a strong Q3 performance, demonstrating the strength and diversity of our portfolio and execution across our markets. We delivered 9% adjusted operating profit growth at constant currency and strong positive operating leverage across the business.

Speaker 2

As such, we have reiterated our full year guidance. Given the momentum across the business and what remains a challenging market environment, We remain confident of delivering on our medium term guidance as we stated in this morning's results release. With that, I would like to hand back to the operator to open up for questions.

Operator

We will now begin the question and answer session. The first question comes from the line of Richard Cowan, Morgan Stanley. Please go ahead.

Speaker 3

Hey, good morning, Tobias and Sonia. Thanks for taking my questions. A couple for me, please. The first One on the negative volume mix in EMEA and LATAM. You talked about the decline largely a function of weakness in Mexico and Colombia.

Speaker 3

Can you get into that a bit more? What's Driving that is it increased elasticity as a result of price increases, more competitive dynamics from peers? Any color there would be Helpful. And then the second point, you're calling out the one off retailer inventory adjustment and digestive health in North America, which means obviously Material enough. Can you quantify that?

Speaker 3

And is that something that you'd expect to reverse into Q4? Thank you.

Speaker 2

Sure. Thanks, Richard. So first on LatAm. So I think not concerned about the overall price volume pricing dynamics. I mean, overall, I mean, you've seen LatAm So a strong quarter, up double digit in revenue.

Speaker 2

When you look at Colombia, they still had a COVID wave in Q3. So they're cycling over that. I think in Mexico, it has more to do with shipments of coal and fluid that are The difference between the quarters this year, so nothing particularly concerning to call out. I believe the team in LatAm has done a really good job and Keep pushing up pricing in a very dynamic environment, but also maintaining overall the ability to hold volumes. On North America, so I think you have yet 2 things.

Speaker 2

So I think the year over year So first of all, I mean, the decline in Digestive Health, that's the biggest driver of why volumes were down, both For the North American market, but also for the group overall. So that's the primary driver. What made Q3 a bit bigger is because Last year, we had built inventory because we had an out of stock situation that we re piped inventory and built. There was an inventory build last year. This year, there was an inventory burn because some retailers decided to hold a little bit less inventory at the beginning of the quarter.

Speaker 2

Most importantly, consumption is still strong. So we had when you look at both the half year and also the Q3 numbers, Consumption on these products is still up, which is the most important thing. And I don't expect that to reverse. Look, I mean, it's Hard to predict what retailers are doing, but this will not repeat or come back In Q4 from our perspective, yes.

Speaker 3

Perfect. Thank you, Tobias.

Operator

The next question comes from the line of Guillaume Delmas, UBS. Please go ahead.

Speaker 4

Thank you and good morning Tobias and Sonia. Two questions from me as well please. The first one is on VMS. I mean, Tobias, can you shed a bit more light on the various brands developments in Q3? Because it seemed that Centrum, your largest brand there, accelerated very nicely from low single digit in Q2 to double digit in Q3.

Speaker 4

But then emergency remained a drag, cold trade was unusually weak and the local brand in EMEA LATAM had another soft quarter. So First, in terms of category growth, are you seeing an improvement in VMS? And then is it fair to assume that Now that emergency is fully normalized and that I would assume Couch Freight should be back to growth in Q4, that VMS could Very soon be back to its medium term gross range ambition of mid to high single digits. And then my second question is on your multi year organic sales growth guidance of 4% to 6%. Appreciate it's early days, but Can you already confirm that your ambition is to achieve 4% to 6% next year, so in 2024, Despite the uncertainty around the respiratory division and the tough comps in China.

Speaker 4

Thank you.

Speaker 2

Thanks, Guillaume. So let me start with BMS, Right. So I mean, you founded our Centrum, so feel really strong about this brand. I mean, geographic expansion, activation, Activating on the clinical trials and the claims that we're rolling out globally. So I think the brand is really strong and not overall, it was Pleased to say that VMS is back to growth.

Speaker 2

And then you mentioned there were a few of the local brands, for example, So last, in Italy, which is more of a seasonal brand, it's a very mild summer in Italy. So there's a bit of ups and downs on those. So Not broadly concerned about these brands. Also, we have a VMS brand in Russia that we stopped distributing. So Wouldn't be too concerned about those.

Speaker 2

And then Culturate was also more of a one time thing. There was a distributor in change In China and then last year, Southeast Asia was very strong. So again, I think not concerned about Health trade also particularly also not for China where the biggest market is. On emergency, What is good to see over the last few months that consumption has now stabilized. So and it stabilized at Pretty much at the 2019 levels in units and then you add on top of that the innovation and the pricing we did.

Speaker 2

So It's been stabilized and it's now following the patterns where it was pre COVID. Of course, it's going to take us from 2 more quarters To land there, but so it's going to until we fully cycle over it, but I think it's good to see that it's found the place at 2019 and now going into the season, It's coming and starting to grow again. But so I think that will be Behind us, I would say, in the not too distant future. And more broadly in BMS, I think we remain confident In the category, and I think it's back to growth now. So we had 2 strong years of growth in VMS.

Speaker 2

And I think now it's coming back with Invested EBITDA, but Centrum more than making up for that. Then on your multiyear Question, yes, I think we'll guide for full year with our full year results. But maybe for us, The 4% to 6% guidance is an annual guidance, right? This is our ambition that we grow 4% to 6% every year and not just over a several year period. That's the first thing.

Speaker 2

The other piece is, if you take a step back, at half year, we guided for 7% to 8% for the full year, that's 4% to 6 In the second half and we're right in the middle on that growth guidance with what we delivered in Q3 I've been very confident in our guidance and being in this guidance range for the year as well, given the strength of the portfolio and of the business that we have, the continued ability to take price as well.

Speaker 4

Thank you very much.

Speaker 2

Thank you.

Operator

Next question comes from the line of Celine Pannuti, JPMorgan. Please go ahead.

Speaker 5

Thank you. Good morning, Tobias and Sonia. My first question is a follow-up on what you just said in terms of the pricing. You said ability to sell price, but I think early on in your commentary, you were talking about going Forward, a lower level of pricing that we have achieved this year. Can you talk about what kind of Underlying pricing that we should be looking at?

Speaker 5

And then maybe is there any commentary you can make on cost That you are facing this year and how 2014 cost deal is shaping up 2024, excuse me, cost is shaping up. My second question is on volume. So you are guiding for volume to improve in Q4. If I take out the benefit or through the impact, sorry, of the One off issue in Digestive in the U. S, I get to minus 0.6 volume at the group level.

Speaker 5

Is that The ballpark of what you are we should be aiming for in Q4. And then in 'twenty To Sue here as well, I mean, do you expect that unwind to be an issue in the first half of the year?

Speaker 2

Good. Thanks, Celine. So on pricing, so when you look at what we did in Q2, we have the peak in pricing, it was 7.9%. It came down to 6.6% in Q3, as I had said at half year, right? And I would expect that trend to continue.

Speaker 2

So Now it doesn't mean we're not taking any pricing, right? So the team continues to take pricing, of course, clearly in the emerging markets where there's high inflation environment. But we also, for example, we took more price in the U. S. In September, mid single digit to low double digit on about a quarter of the portfolio.

Speaker 2

So I think We feel good about our ability to take price. Also, we have seen limited price elasticity today. So from that We need a reassurance of our ability to take and doing that forward. Now of course, we're mindful on the consumer backdrop, but I think when you look, I think what the team has done, I think we found probably the good spots between pricing and volume. But of course, we're going to be responsible And the pricing we're taking overall in this environment.

Speaker 2

On the cost inflation, I think we're down into the mid single digits, so that is clear. There are a few of the commodities start coming down, but then I think there's others that still stay stubbornly high, Like sugar, anything that is sugar related, but also of course the thing for this, I think the bigger topic right now is labor costs and How labor costs evolve and but again, I think what we said before with pricing, I think we should have the ability to offset inflationary headwinds With the price that is coming through. And then on your volume question, so I think For us, I think, as I said, it's going to be better than Q3 was. When you look at Q4, so the puts and takes, Last year, there was a recall. That helps.

Speaker 2

We don't expect to have a recall this year. And then, of course, the other direction It is. Last year, Fendid in China and Contact took off after the change in COVID strategy in China. And indeed, we had this very early peak on the cold and flu season in the U. S.

Speaker 2

So as I had guided at half year, we would still expect Volume to be down on cold and flu in the second half of the year, particularly in Q4 as well given that dynamic, right? But if you can take a step back from it in aggregate for the business, very confident about the 4% to 6% guidance we had given for half 2 and that then puts us Shari, we dial into the 7% to 8% range. And then going into next year, I think Exactly the same comment, right? I mean, you've seen we did 5% growth in Q3 with ups and downs, with puts and takes on a day side. So I think The beauty in this business in my view is the diversity of this portfolio from a brand perspective and you saw, I mean, The high single digit, nearly double digit growth on our power brands that carry that forward.

Speaker 2

The The categories, sort of strengths across 4 categories that carry the growth and then also the geographic mix We have a good thought of the business being in emerging markets versus developed markets. I think that gives us the ability and I think The strong confidence that we can grow and continue to grow in this 4% to 6% range going forward. Thank you. Thanks, Celine.

Operator

The next question comes from the line of Karel Zoete, Please go ahead.

Speaker 6

Yes. Good morning all. Thanks for taking the question. I have two questions. First one is especially a follow-up on China.

Speaker 6

You already provided some insights highlighting The difficult comparison base for the Bain franchise, how should we look at the coming quarters ahead? Is that going to be something where you would anticipate therefore a Line or are there also offsets? In China? And the other thing is on the U. S.

Speaker 6

Pain franchise, you mentioned up, so was down mid single digits. And regarding Paul, Tarend, you particularly mentioned the progress in the European markets. How is the brand doing in the United States? Thank you.

Speaker 2

Sorry, I didn't get your last one. I got China, the pain in the portfolio at the U. S, but then you said to Fotaren.

Speaker 6

Yes. Fotaren, Yes. You highlighted that Voltaren is doing well in Europe. Now that's good. And probably improvement in Germany too.

Speaker 6

But how is Voltaren doing in the U. S?

Speaker 2

Okay, good. Thank you. I got it. So then let me start with China. So I think Let me first explain a little bit what happened on Fenbit.

Speaker 2

So I think on Fenbit or in China, there was the 2nd COVID wave in May That was over May, June. Then the government in China expected another third wave. So they told retailers and pharmacies to keep stocking products. That didn't happen. So luckily For our colleagues in China, so ultimately what then we decided during the Q1 is to ramp inventory down to normalized level, Given there was not another wave.

Speaker 2

Now last year, of course, you had the big pickup in Q4 and Q1. So we would Like the drag from that on the pain relief portfolio. But when you look at the rest of the portfolio in China, I think Very strong brands. We see continued growth in the oral care business, in the Calfrac business and in the rest of the portfolio. So I think, yes, there's got to be a bit of a drag on the pain relief and on the China business as we cycle that over.

Speaker 2

But overall, feel good about our ability to The Chinese business. On Advil in the U. S, Very competitive situation. Of course, Advil, key competitor is Tylenol. They have done very well.

Speaker 2

So I think we got a bit of work to do now. Nothing surprising in the big portfolio like we have, right? And the paint relief overall grew 6%. All the brands did well in that, even with the small drag or the drag they had from Benbit in it and then Apple was down. So key focus for us to The attention to that, we just saw the price increase on it, which will support.

Speaker 2

But yes, I It's one of those where we go head to head with a very strong competitor. And then I think On Voltaren, I mean, overall, I think this year, I think we've seen good growth On the brand in aggregate, so I think also it's doing well In the U. S, it's done particularly well in Europe now. I think coming off higher use Of systemic pain relief products that helps Voltaren because in times when people use a lot of tablets, They tend to reduce the use of public or pain relief medicines. Okay.

Speaker 2

Thank you.

Operator

The next question comes from the line of Chris Pitcher from Redburn. Please go ahead.

Speaker 7

Thank you very much. I've got a couple of follow ups and a question. To Fenvid and Contact, I appreciate it's going to be an issue in the next couple of quarters, just to get the underlying growth there. And then on the question about Volume growth into Q4, can you give us a bit of color about the mix effect you would expect within that, particularly with lower Potentially lower respiratory sales. And then an underlying question, India.

Speaker 7

You highlight the strength of oral health, but can you say how Digestive Health performed and how the roll

Speaker 2

Yes. Look, I think for me, I mean, China overall That's strong, right? So I really don't want to go into the ups and downs, right? I mean, ultimately, I think The China performance overall is strong. The defendant was a small drag there on both the petro needs category globally and that.

Speaker 2

But I think, I mean, ultimately what the team has been doing, I think they've offset these impacts very well so far. And The good news is we have a broad portfolio in China that carries us through. I think on I mean, yes, I think as you mentioned, right, I mean, we would part of our guidance, we would expect volumes to be down In respiratory now, look, this is an assumption, so we need to see what the season does, but I think that is clear. There's going to be another drag clearly on Vended because that's when the consumption started. And then when you look at Digestive Health and Others, there should be a small help because last year we had a recall on Tums.

Speaker 2

I think that's probably the biggest puts and takes in the portfolio. And then, of course, you have to remove Lamicel From the model as well, I know it's small, but I think given we closed that a bit earlier than we expected. And then I think the rest of the portfolio, I think, would expect continued strong momentum and performance. And Then you asked about India. Yes, sorry.

Speaker 1

I think on India, what I was saying, Digestive, it was pretty So double digits, I mean that's obviously Eno doing particularly well in the market in the quarter.

Speaker 7

And the rollout of Centrum still going The plan?

Speaker 2

Yes. Yes. Thanks. Thanks, Chris.

Operator

The next question comes from the line of Tom Sykes, Deutsche Bank. Please go ahead.

Speaker 8

Yes. Good morning, everybody. Firstly, just on the gross cost savings, the $300,000,000 I wondered if you could maybe just give us an update on when those Should hit the P and L, and perhaps how much of the $150,000,000 Just To be clear, you would expect to spend in full year 2023. And just on standalone costs, I mean, will there be any difference In seasonality, in full year 2024 versus 2023, Leitner has been obviously

Speaker 2

in

Speaker 8

2023 versus 2022. And if I can, just a quick one. Is there any part of your VMS business that is seeing a GLP-one impact At all. And do you expect an impact of at all people taking vitamins supplements at all If they start embarking on taking those medicines. Thank you.

Speaker 2

Thanks, Tom. So So look on the cost savings, we said the impacts are going to be 2024 and 2025. We are making good progress, so we made Announcement, so we are and given the announcement, largely impact populations in Europe. We're in the middle of the We're in consultation phase, so it always takes a bit of time then for the savings to realize because as per labor law That we have in those countries, you have to get the consultation before people are before people can exit So from our perspective, we made good progress on that, but we would expect The savings to hit in 2024 and 2025. On the standalone cost, I think That is now stable.

Speaker 2

I mean, we're just ramping down now the TSA. They weren't a big amount, but year over year, you get the small benefit, and I think That's going to be complete quite soon. So from that point of view, this is history. And I would hope that from Next quarter on, I don't need to talk about stand alone costs anymore because they're in the base, there is no phasing, there is nothing to worry about that going forward. We just I put it in the bridge now even it was only $10,000,000 because it was such a topic before, but that's going to be history now Very soon.

Speaker 2

And then, Luc, on your GLP-one question, we don't think we have a direct impact on from GLP-one From consumers potentially changing behaviors, I mean, ultimately, we believe it's a good thing if people want to take care of their health and want to That's healthier. So I think that should be overall benefit us in my view, but I don't think there's any direct impact. It's also way too early to tell what it could do, but I don't see any direct consequences on our business at this point.

Speaker 8

Okay. Thank you.

Operator

There are no more questions at this time.

Speaker 2

All right. Thank you. So I

Speaker 1

think we just finished. I just have a quick comment.

Speaker 2

Yes. That's good. So look, thanks everyone for your time and your interest in Halion. And as you've seen, we had a good quarter. I look forward to updating you on our Progress next year together with Brian.

Speaker 2

And if you have any questions, please feel reach out to our IR team. And also worth mentioning, we'll be hosting our first Helia highlights mini deep dive that will be on oral health on the 7th December in London And we'll also get past that. So thank you and bye bye for now.

Speaker 1

Thanks very much.

Speaker 2

Thank you.

Operator

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus.

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Haleon Q3 2023 TU
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