Adani Wilmar, a leading player in the edible oils and foods industry, reported a strong performance in the first quarter of FY24. The company witnessed a remarkable 25% year-on-year volume growth during the quarter, primarily driven by robust consumer demand in the edible oils and foods segments.
Despite a sharp decline in edible oil prices, the sale of branded products in these segments remained strong, outperforming the overall sales. Adani Wilmar’s edible oil business recorded a substantial 25% YoY volume growth, supported by continued consumer demand and a favorable base effect from the previous year.
The food and FMCG segment also demonstrated impressive growth, with a revenue increase of 30% compared to the same period last year, crossing the significant milestone of Rs 1,000 crore. This marked the eighth consecutive quarter of 20% YoY volume growth in the food segment and 30% in the FMCG segment.
Both urban and rural areas contributed to the strong demand, and the company experienced significant growth in alternate channels such as e-commerce, modern trade, and B2B. The oil and food products achieved approximately 50% YoY volume growth in these channels during the quarter.
Adani Wilmar continued its focus on expanding distribution in the general trade channel, reaching more customers with its branded products. The company’s sale of branded products to HoReCa clients (hotels, restaurants, and catering) also witnessed substantial growth, thanks to expanded distribution in new cities and the acquisition of new accounts.
In terms of industry essentials, Adani Wilmar’s business grew by 20% YoY in volume, driven by strong crush operations and exports of animal feed products. However, the revenues in this segment declined by 15% YoY due to a significant correction in the prices of oleo and castor products, which contribute a substantial portion of the segment’s revenue.
Overall, Adani Wilmar’s performance in the first quarter showcased the company’s ability to meet consumer demands and sustain growth across various segments. The strong volume growth, coupled with strategic distribution expansion and successful market penetration, positions Adani Wilmar as a key player in the edible oils and foods industry.
At the close of trading on Wednesday, shares of Adani Wilmar stood at Rs 406.95 on the BSE, marking a marginal decrease of 0.20%.
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