The broader portfolio of oils and food products, combined with increased throughput, is now providing with a scale advantage in distribution.
In Q2, revenue from alternate channels increased at a strong double digit rate YoY, with revenue over the past twelve months exceeding Rs 3,000 crore. The e-commerce channel has seen even more rapid growth, with its revenue increasing by around four times in the last four years.
Segment-wise, Adani Wilmar’s edible oil volume increased 15% YoY, while the sales value for the segment jumped 20% YoY.
The edibile Oil business maintained its strong momentum with double-digit YoY volume growth driven by strong performance in Soyabean, Sunflower and Mustard oils.
The Food & FMCG segment recorded a YoY revenue growth of 36%, fueled by increased outlet penetration, and repeat purchases of the company’s food products. Excluding the G2G business (sales to government-appointed export agencies), revenue growth was 26% YoY.
The sales also benefitted from the introduction of small pack sizes in markets with lower per capita consumption. In Q2, branded sales of pulses, besan, soya nuggets, sugar, poha, and soap showed strong double-digit growth YoY
The company has been expanding its distribution network to access more towns, reaching over 36,000 rural towns directly by the end of Sep’24. This marks a substantial progress from just over 5,000 towns in Mar ’22. The goal is to reach 50,000 plus rural towns by the end of FY’25 and drive the penetration of outlets and volume offtake in the new outlets.
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.
Shares of Adani Wilmar declined 1.41% to Rs 331.55 on the BSE.