By Richa Naidu
LONDON (Reuters) – Reckitt Benckiser CEO Kris Licht said on Wednesday the consumer goods company’s business in China was “thriving”, with double-digit sales growth there year on year, even as its rivals struggle as the world’s No. 2 economy falters.
China’s economy grew at the slowest pace since early 2023 in the third quarter, and though consumption and industrial output figures for last month beat forecasts a tumbling property sector remains a big challenge for Beijing as it tries to boost growth.
The country has struggled to mount a strong and sustainable post-COVID economic rebound, burdened by the property downturn, massive local government debt and weak private-sector spending.
Licht’s comments contrast with some other companies such as L’Oreal which on Tuesday blamed worsening demand in China for weaker-than-expected quarterly sales. Procter & Gamble, the world’s biggest consumer goods company, has been downgraded by some analysts in recent months due to its exposure to China.
But Licht said the products Reckitt makes in China have “thrived” despite generally low consumer sentiment and noted the company regularly launches products in China that are initially exclusive to that country.
“Our business in China is thriving, and we’re seeing double-digit growth in that business year on year,” he told Reuters in an interview after reporting slightly better-than-expected results on Wednesday.
The company, whose strongest products in China include its Dettol disinfectants, in recent years has also invested in facilities in China to bolster its growth.
“We’re feeling very optimistic, actually, about our business in China,” Licht said.
Reckitt on Wednesday reported a smaller than expected fall in third-quarter underlying sales, helped by demand for its health products.
(Reporting by Richa Naidu; writing by Josephine Mason; editing by Jason Neely)
