Indian destocking hits GSK consumer health care business

Lack of preparedness by the trade in the run-up to the GST caused a holding back on purchase orders

GlaxoSmithKline’s (GSK’s) consumer health care unit reported a decline in worldwide sales growth on a constant exchange rate (CER) basis in the second quarter of 2017. Retailer destocking in India was a major reason for this.

The decline is of 200 basis points (bps), GSK said of this business, which makes health food drink Horlicks, among other products. Lack of preparedness by the trade in the run-up to the Goods & Services Tax (GST) caused a holding back on purchase orders during the period, it said.

Apart from trade destocking in India, another key reason for a drop reported in consumer health