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Adani Wilmar Q2 volume growth in double digit, sales value declines YoY

Oct 6, 2023

By: BlinkX Research Team

According to the company's exchange filing, Adani Wilmar will produce high volume growth in the double digits as a result of the significant opportunity in packaged staple goods and strong execution. Due to a greater emphasis on expanding the rural distribution network, rural sales have been growing faster than the national average. Despite the substantial volume rise, the YoY sales value loss is due to the sharp decline in worldwide edible oil prices.

The Food & FMCG sector continued to expand quickly, with segment revenue growing by almost 25% YoY for the quarter on a standalone basis, along with an underlying volume growth of 18%. This is true despite the fact that rice export limitations have reduced export revenue. The segment revenue is around INR 4,300 crores on LTM (last twelve month) basis and in Q2 it contributed around 10% to the Company’s standalone revenue.

Strong execution in alternate channels (Modern Trade and E-com), in close collaboration with the channel partners, has been leading to higher growth rates in these channels for both oil & foods. Quick commerce has been growing at the fastest rate and has become a large part of overall ecommerce sales.