With a robust product portfolio, the company is actively pursuing substantial opportunities by executing strong sales and distribution strategies in general trade.
Moreover, the firm’s alternate channels like e-commerce, quick commerce and MT maintained their momentum with 19% year on year volume growth in Q1. The volume of its branded exports increased by 36% YoY in the June quarter.
Segment-wise, Adani Wilmar’s edible oil volume increased 13% YoY, while the sales value for the segment jumped 10% YoY.
Despite challenges in the industry during the quarter, including decreased out-of-home consumption and seasonal dips in summer demand, the firm’s business thrived due to robust execution in sales and distribution, bolstered by its ongoing efforts to improve retail penetration, said the company.
The edible oil major stated that it has consistently expanded its market presence, driving robust growth amidst a fragmented market landscape. Sunflower oil continued to gain market share in South India on the back of our regional interventions.
The company added that the food products demonstrated strong growth by harnessing the well-established and widely penetrated distribution network of edible oils, along with increasing trials through strategic bundling and trade schemes.
The volumes for the segment surged 46% while sales value jumped 45%.The quarter's growth was additionally supported by sales of non-basmati rice to Government appointed agencies for exports. Even after normalizing this aspect, the Food & FMCG business volume grew by 23% YoY.
In the Wheat business, the packaged atta industry has experienced a significant slowdown in growth over the past three quarters, the company has maintained a robust growth trajectory. This has been driven by an expanded presence in retail outlets and households and increased repeat purchases.
Further, the firm said that its wheat business has made notable gains in the South market. Overall, its market share in wheat flour has continued to expand.
In the Rice business, the Company is implementing several initiatives to drive robust growth. By utilizing its distribution network, the business has expanded its presence in numerous outlets. The quarter saw good growth, bolstered by a successful promotional event in collaboration with a major retailer, Adani Wilmar stated in the press release.
Revenue from branded products in the domestic market has consistently grown at a rate exceeding 30% YoY for the past eleven quarters. The company anticipates that strong growth in food volume will persist.
Adani Wilmar is a provider of Edible Oil, Vanaspati, and Specialty Fats. The company offers soyabean oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, groundnut oil, and coconut oil, as well as vegetable ghee. The company is one of the largest FMCG companies in India.
The edible oil major’s consolidated net profit surged 67.45% to Rs 156.75 crore in Q4 FY24 as against Rs 93.61 crore posted in Q4 FY23. Revenue from operations stood Rs 13,238.04 crore in Q4 FY24, down 4.57% from Rs 13,872.64 crore recorded in the corresponding quarter previous year.
The scrip shed 0.25% to end at Rs 332.90 on Friday, 5 July 2024.