Adani Wilmar posted its financial results for the quarter ended on March 31, 2023 on Wednesday. The Adani Group company reported a 67 per cent year-on-year (YoY) surge in its net profit for the March quarter (Q4 FY24), rising to ₹157 crore from ₹94 crore last year same period.
Adani Wilmar is a joint venture company between Adani Enterprises and Wilmar International.
In the same quarter, revenue from operations experienced a 5 per cent year-on-year decline, amounting to ₹13,238 crore. This contrasts with the company’s revenues of ₹13,872 crore in the corresponding period of the previous year.
Also read: Ambuja Cements Q4 results: Net profit rises 6% YoY to ₹532 crore; announces dividend of ₹2
The company noted that its sales volume maintained robust growth, experiencing substantial increases in both the edible oils and foods segments throughout the quarter and the entire fiscal year. This growth was attributed to heightened retail penetration.
“The Food & FMCG segment reached a milestone of almost ₹5,000 crores in FY’24, and nearly doubled in 2 years,” the company said in a statement.
The company has also been gaining market share in its key products. In edible oils, ROCP (Refined Oil Consumer Pack) market share of AWL has increased by 60bps to 19.0% on MAT basis. In Wheat Flour, its market share has increased by 60bps to 5.6%.
“We continued to witness strong volume growth in our edible oils & foods business driven by increased retail penetration. A focused approach in sales & marketing and regional approach in each category is leading to gaining market share from the local players. The adoption of our Integrated Business model strategy allows us to effectively compete with large and regional players,” said Angshu Mallick, MD & CEO, Adani Wilmar Limited.
Segment-wise Q4 numbers
Edible oils
In the fourth quarter, the edible oil segment generated ₹10,195 crores in revenue and ₹38,788 crores in the fiscal year 2023-24. The volume increased by 11 per cent year-on-year in Q4 and by 9 per cent year-on-year in FY’24.
The domestic branded sales volume grew at a faster clip at 13 per cent YoY in FY’24, compared to overall growth. This is the second consecutive year with faster growth in the branded portfolio, which has resulted in the market share gains.
Food and FMCG
The Food & FMCG segment recorded revenue of ₹1,341 crores in Q4, with an underlying volume growth of 9 per cent YoY for the quarter.
In FY ’24, the domestic revenue and volume both grew by 39 per cent, whereas export volumes of rice declined by 46 per cent, due to export restrictions. As a result, overall Food & FMCG revenue grew by 23 per cent YoY resulting in revenues of ₹4,944 crore. The revenue from branded products in the domestic market has been growing consistently YoY at over 30 per cent for the last ten quarters.
In the strong markets of edible oil, the Food segment has been leveraging the outlet penetration to drive its growth.
Industry Essentials
The Industry Essentials segment recorded revenue of ₹1,702 crores in Q4 and ₹7,479 crore in FY’24. The segment’s volume declined by 22 per cent YoY in Q4’24. This is due to the decline in the oil meal business by 45 per cent. Oleo-chemicals and Castor businesses grew by 19 per cent and 4 per cent respectively.
For the financial year FY’24, segment volume grew by 8 per cent, with 13 per cent YoY growth in Oleo-chemicals and 2 per cent YoY growth in castor business. The oil meal business also grew well at 9 per cent YoY growth.
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Published: 01 May 2024, 06:03 PM IST