7 February 2020 While profits were in line, sales were significantly affected by a sharp decline in exports and a poor performance in the foods business. According to management, the focus on top-line growth may keep near- term margins under check. Given the nature of the Hindustan Unilever and GSK Consumers (SKB) transaction, the stock price of the latter will track that of the former and not its own financial performance. Maintain YoY/+60bp QoQ) and at 11.5% for Boost (+70bp YoY/+10bp QoQ). Volume market share (L3M Dec19) stood at 51.5% and 15.4% for Horlicks and Boost, respectively. Commodity inflation stood at 6.5% for 3QFY20; inflation is likely to persist for a few more quarters. SKB would not take price increase in line with or ahead of inflation as it can lead to a decline in category penetration.