RB is undertaking a strategic review of the infant formula business in China following a continued poor performance in 2020.

The business – which represents around 6% of total group revenue – had “structural challenges that we need to address,” Narasimhan said.

“The Hong Kong border closure has lasted longer than expected, and there are uncertainties as to when it will open. We see a challenging local environment with local competitors investing heavily to drive growth. We see a change in the regulatory environment, particularly in mainland China. And with COVID for the near term, there has been a further decline in birth rates.”

RB has promised to keep the market updated as the review progresses.

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