LONDON (Reuters) -Consumer goods group Reckitt expects China to continue to be a growth engine for its core business, CEO Kris Licht said on Wednesday, as health-conscious consumers increasingly engage with brands across the company’s portfolio.
Reckitt beat expectations for third-quarter like-for-like net sales growth, boosted by strength in emerging markets, which saw like-for-like net revenue growth of 15.5%, marking a bright spot for a sector weighed down by broader pressures.
China specifically delivered another strong quarter of double-digit growth, Reckitt said, with brands including Dettol, Durex and Veet contributing to market share gains there.
China’s population is ageing and now fairly affluent, Licht said, creating a real willingness to spend. E-commerce now makes up the majority of Reckitt’s China business, Licht added, while livestreaming, one of the ways Reckitt engages with consumers, is growing fast.
“We’re just seeing a very receptive consumer that is willing to try new things, willing to pay a premium for improved performance and effectiveness, and I think that’s a good place to be,” Licht said.
Licht named Malaysia, Colombia and Indonesia as markets that could help create a “third engine” of growth in emerging markets, building on strong performance in China and India.
(Reporting by Pushkala Aripaka and Alexander Marrow. Editing by Joe Bavier and Mark Potter)
