Haleon scales up oral care manufacturing in China with USD 85.8M investment
It will boost expansion into rapidly developing tier 2 and tier 3 cities, driven by higher incomes, increased health awareness, and demand for reliable branded solutions.
CHINA – Haleon, a leading consumer health company dedicated to improving everyday health, has announced a significant USD 85.8 million investment in a cutting-edge oral health manufacturing facility in Shanghai, China.
This new plant targets growth in the world’s largest gum health market by enhancing production for Haleon’s oral care lineup, including global brands Sensodyne and Parodontax.
The facility features custom-formulated products with localized flavors, improved foaming action, and upscale packaging tailored to Chinese preferences.
Brian McNamara, Chief Executive of Haleon, stated, “ Building on our established R&D capabilities and strong local team, this investment reflects our long-term commitment to bringing the very best of our global science and innovation to improve the health and well-being of Chinese consumers.“
“By combining our world-class research expertise with deep local insights and on-the-ground manufacturing and R&D capabilities, we are delivering high-quality, science-backed products that improve everyday health in China.”
Haleon plans to extend its gum health brand Parodontax to 30 Chinese cities by the end of 2027, prioritizing fast-growing urban centres to connect with ambitious consumers via both physical retail and e-commerce channels.
This move aligns with shifting consumer habits toward preventive oral care and premium, science-driven options.
Local R&D and manufacturing will merge global expertise with regional insights to deliver superior products.
In June 2025, Haleon finalized its acquisition of the remaining stake in the TSKF joint venture for about £700 million (USD 924 million), securing full ownership of its over-the-counter operations in China.
These combined efforts signal Haleon’s firm belief in the sustained expansion of China’s consumer health sector.
Haleon’s FY25 highlights
Haleon reported solid financial performance for the full year 2025, with organic revenue growth of 3.0% despite challenges like a weak cold and flu season.
The company achieved strong profit and cash flow growth while outlining optimistic guidance for 2026 under its “Win as One” strategy.
Organic revenue grew 3.0%, driven by +2.3% price and +0.7% volume/mix, with regional variations: North America at (0.4)%, EMEA & LatAm at +4.7%, and APAC at +5.2%.
Adjusted operating profit rose 10.5% to USD 3.33 billion, with a 22.9%, supported by 220bps gross margin expansion to 65.2% from productivity and pricing.
Free cash flow reached USD 2,525 million, while net debt/Adjusted EBITDA closed at 2.6x after £1.1B(USD 1.45 billion) in shareholder returns.
For 2026, Haleon anticipates 3-5% organic revenue growth and high-single-digit adjusted operating profit growth at constant currency, with £500m(USD 660 million) in share buybacks and c.(1)% FX headwind.
Medium-term guidance remains 4-6% revenue growth and high-single-digit profit growth, targeting 2.5x leverage.
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