GSK merger became a pain killer for HUL

• Hindustan Unilever’s (HUL) first-quarter earnings showed a 7% increase in profit after tax, despite the blues of coronavirus-induced lockdown.
• GSK merger helps mask the pain; total sales grows 4%
• The share price of fast-moving consumer goods major ended a percent lower ahead of the earnings even as the Sensex rallied over 500 points.

India’s largest consumer goods company Hindustan Unilever’s (HUL) first-quarter earnings showed a 7% increase in profit after tax to ₹1,881 crore. But if the benefit from the merger of GlaxoSmithkline's (GSK) consumer business is removed, the topline would have shrunk 7%.

Particulars	April-June 2020	Growth
Revenue	₹1,881 crore	7%
Profit	₹10,560 crore	4.20%

Revenue from every segment, except food and refreshment, took a beating as demand went down and supply was choked even for essentials.

Segment	Revenue	Growth%
Home Care	₹3392	-2.1%
Beauty & Personal Care	₹4039	-11.9%
Foods & Refreshment	₹2958	34%
Others	₹171	-35.6%

The street was expecting a 2% fall in revenue. The share price of fast-moving consumer goods major ended a percent lower ahead of the earnings when the Sensex rallied over 500 points.


"Hygiene and Nutrition constituting, 80% of our portfolio, delivered healthy mid-single digit domestic consumer growth," Chief Executive Officer (CEO) said in a statement to the exchanges.

SEE ALSO: HUL vs Emami — A lawyer explains what’s fair and not in the battle of brands

HUL CEO says the product inventory range will be smaller and simpler hereon⁠— analysts believe others may have the same plan