Procter & Gamble Co.’s business is seeing a slow recovery in China, in part because of high unemployment among young people.
(Bloomberg) — Procter & Gamble Co.’s business is seeing a slow recovery in China, in part because of high unemployment among young people.
“There continues to be consumer confidence challenges driven by many factors in China,” Chief Executive Officer Jon Moeller said during a conference call Friday. “There are some fundamental underlying economic challenges. If you look, for example, at the employment rates of people in their 20’s — it’s very low.”
He said unemployment rates are as much as 20% among that cohort.
The maker of Tide laundry detergent and SK-II premium skincare products reported improving trends across Asia in the most recent quarter, with China’s organic sales rising 4%. Competitor Kenvue Inc., the maker of Tylenol and Listerine mouthwash, said last week that a slow economic rebound in China was hurting the company’s sales.
China “continues to recover, not at a significantly rapid pace, but steadily,” Moeller said.
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