Adani Wilmar reports 25% yoy volume growth in Q1FY24

Adani Wilmar has informed to the exchanges that its sales fell 15% yoy due to a sharp decline in edible oil prices, even as volumes jumped 25% yoy for the quarter. 

Edible oil and industrial essentials segments witnessed 15% de-growth in revenues, the company said.

As per the filing, the Food & FMCG segment recorded a revenue growth of 30%+ yoy to cross Rs 1,000 crore of revenue for the quarter on a standalone basis. This was the eighth consecutive quarter with 20%+ volume growth and 30%+ revenue growth, on YoY basis, for the Food & FMCG segment.

Adani Wilmar said both urban and rural areas have witnessed strong demand where the oil and foods continued to grow at a rapid pace in the alternate channels (E-com, MT, eB2B etc.) and recorded around 50% yoy volume growth for the quarter. 

The Company added that since Q1 of the last fiscal year, the price of edible oils has been declining. This trend continued during Q1’24 with the price of edible oils experiencing further decline, in the range of 5% to 20% (Q1’24 vs Q4’23), before recovering as the quarter came to a close. T

his reduction has been attributed to a combination of factors, including the decline in consumer demand in developed economies, easing of supply at the Black Sea region and robust production of oilseeds globally.

The decline in the price of edible oils has had a stimulating effect on consumer demand in India, which has been robust for the last three quarters. A strong uptick in demand, is also evident in the growth of import of edible oils in India, which grew by 18% YoY till May-end, in the Oil Year 2022-23 (Nov’22 – Oct’23).

Edible Oil The edible oil business grew by 25% YoY in volume terms during the quarter on the back of continued strong consumer demand as well as the weak base of Q1’23. 

The base quarter demand was disrupted by high edible oil prices with the onset of the Russia-Ukraine conflict. On a sequential basis also, the volume growth in Q1’24 over Q4’23 has been quite strong, the company said.

Source: Media Reports