Apple and McDonald’s are seeing sales in China soften because of the country’s slowing economy, but that’s not the case for Procter & Gamble.
“We do not see a slowdown in China as witnessed by those results,” CFO Jon Moeller said Wednesday on a conference call with analysts.
The company’s organic sales in the country grew by 15 percent during its second quarter. Organic sales exclude the impact of foreign currency exchange and mergers and acquisitions.
Moeller added that the company has seen both successes and challenges in the country. Take diapers, for example. It became the number one diaper brand on JD.com and Alibaba, China’s biggest e-commerce sites, this quarter. The company saw the business grow 12 percent in China during its fiscal second quarter, after declining by double digits last quarter.
Moeller said that the company is “fairly confident” about growth in China during the second half of the fiscal year.
Procter & Gamble’s stock rose Wednesday after it reported strong second-quarter results. After excluding restructuring costs and other items, the company earned $1.25 per share, beating Refinitiv estimates of $1.21 per share. It reported $17.44 billion in revenue for the quarter, beating Wall Street’s expectations of $17.15 billion. The Cincinnati-based company also raised its outlook for organic sales to a range of 2 to 4 percent.
Tune into CNBC Thursday at 10 a.m. ET to see Sara Eisen’s interview with Procter & Gamble CEO David Taylor at Davos.
Source : CNBC