Multinationals feel destocking pinch in June quarter

Analysts say the impact of trade destocking is likely to be higher in the September quarter

Multinational companies in the fast moving consumer goods sector (FMCG) have reported a significant destocking impact on their June-quarter sales growth numbers, ahead of the implementation of the goods and services tax (GST) in India.

On Thursday, the world’s second-largest consumer goods company, Unilever, reported a 0.6 per cent decline in sales volume growth in the Asia, Africa, Middle East, Turkey, Russian and Brazil regions, clubbed as the Asia/AMET/RUB zone, in the quarter (Q2). 

It was the only Unilever region to report a decline in Q2 (Americas and Europe, the other two regions, reported a 0.9 per cent and 0.1