Adani Wilmar Ltd

Adani Wilmar announced that the 26th Annual General Meeting (AGM) of the company will be held on 26 June 2024.

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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.

Profit before tax climbed 63.18% year on year to Rs 210.89 crore during the quarter.

Edible oils grew by 11% and Food & FMCG by 9% in volume terms, a significant decline in the export business of oil meals dragged down the overall volume growth to 3% YoY in Q4 FY24.

The company said that its sales volume continued to grow well, and it has witnessed strong volume growth in both edible oils and foods businesses during the quarter and for the full year, driven by increased retail penetration.

During the period under review, the edible oil segment recorded revenue of Rs 10,195 crore (down 6% YoY) while Food & FMCG segment’s revenue was at Rs 1,341 crore (up 16% YoY).

The Industry Essentials segment recorded revenue of Rs 1,702 crores in Q4 FY24, down 12% from Rs 1,924 crore posted in Q4 FY23. The volume declined by 22% YoY in Q4’24. This is due to the decline in the oil meal business by 45%. Oleo-chemicals and Castor businesses grew by 19% and 4% respectively.

In recent quarters, the company has made significant improvement in its distribution infrastructure in the southern region. Regional marketing communications and other interventions have resulted in the company gaining market share in Sunflower Oil. With the increased digitalization of sales function, the company has improved its agility in making decisions for dynamic pricing in the local markets, it added.

On full year basis, the company’s consolidated net profit tumbled 74.58% to Rs 147.99 crore on 11.9% fall in revenue to Rs 51,261.63 crore in FY24 over FY23.

In Edible oils, the domestic branded sales volume grew at a faster clip at 13% YoY in FY24, compared to overall growth. This is the second consecutive year with faster growth in the branded portfolio, which has resulted in the market share gains.

The company stated that it has also been gaining market share in its key products. In edible oils, ROCP (refined oil consumer pack) market share of AWL has increased by 60bps to 19% on MAT basis. In wheat flour, its market share has increased by 60bps to 5.6%.

For Food & FMCG segment, the domestic revenue and volume both grew by 39% in FY24, whereas export volumes of rice declined by 46%, due to export restrictions. As a result, overall Food & FMCG revenue grew by 23% YoY resulting in revenues of Rs 4,944 crore. The revenue from branded products in the domestic market has been growing consistently YoY at over 30% for the last ten quarter.

The hotels, restaurants and cafes (HORECA) segment has crossed Rs 400 crore of revenue in FY24, a feat achieved within 1.5 years of setting up a dedicated HORECA distribution channel. This segment has an estimated addressable market of over Rs 65,000 crore for edible oils & foods.

The profitability of the company recovered in H2 of FY24, after witnessing subdued profits due to highprice inventory and dis-alignment of the hedges in H1 FY24. In H2 FY24, the PAT grew by 5% YoY to Rs 358 crore, compared to Rs 340 crore in H2 FY23.

Angshu Mallick, MD & CEO, Adani Wilmar, said, “We continued to witness strong volume growth in our edible oils & foods business driven by increased retail penetration. A focused approach in sales & marketing and regional approach in each category is leading to gaining market share from the local players. The adoption of our Integrated Business model strategy allows us to effectively compete with large and regional players.

With fast-growing volumes, the company has achieved major milestones during the year. In fiscal FY’24, Food & FMCG business reached 1 million MT in sales and overall company surpassed 6 million MT in sales. Revenue in Food & FMCG segment has nearly doubled in last 2 years to reach almost INR 5,000 crores in FY’24. Improvement in branded mix in edible oils during the year has also led to better profitability for the Company in the second half.

The challenges faced by the company in Bangladesh operations have been overcome with the improved forex situation and fundamentals of the economy. The operations have come back to normalcy this quarter. Our brand “Rupchanda” remains the market leader in Bangladesh in the Edible Oil category.”

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.

Shares of Adani Wilmar declined 1.51% to Rs 352.05 on the BSE.

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Net profit of Adani Wilmar rose 67.45% to Rs 156.75 crore in the quarter ended March 2024 as against Rs 93.61 crore during the previous quarter ended March 2023. Sales declined 4.57% to Rs 13238.04 crore in the quarter ended March 2024 as against Rs 13872.64 crore during the previous quarter ended March 2023.

For the full year,net profit declined 74.58% to Rs 147.99 crore in the year ended March 2024 as against Rs 582.12 crore during the previous year ended March 2023. Sales declined 11.90% to Rs 51261.63 crore in the year ended March 2024 as against Rs 58184.81 crore during the previous year ended March 2023.

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Adani Wilmar will hold a meeting of the Board of Directors of the Company on 1 May 2024.

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While the company grew by strong double-digits in both edible oils and foods, a significant decline in the export business of animal feed dragged down the overall volume growth to 4% YoY in Q4FY24.

In Q4, the segment’s revenue grew strongly by 18% YoY driven by strong domestic sales, despite the negative impacts of the continued export restrictions. In strong markets of edible oil, the Food segment is leveraging the outlet penetration to drive its growth.

The company benefited from the strong demand during the festive occasion of Holi and the ongoing wedding season.

In FY2024, in edible oils, branded sales grew at a faster clip at 15%, compared to the overall segment growth of 10% YoY. This is the second consecutive year with faster growth in the branded portfolio.

In FY2024, the Food & FMCG segment has achieved the milestone of 1mn MT of sales. In just two years segment’s revenue has nearly doubled to approximately Rs 4,700 crore. The revenue from branded products in the domestic market has been growing at 30% YoY or higher for the last ten quarters

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 declined 18.39% to Rs 200.89 crore on 16.9% fall in revenue from operations to Rs 12,828.36 crore in Q3 FY24 over Q3 FY23.

The counter fell 0.71% to settle at Rs 352 on Friday, 5 April 2024.

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Despite good volume growth, revenue is optically lower in Q3 FY24, as product pricing has been lower during the year, in-line with lower raw-material costs.

Profit before tax in Q3 FY24 was at Rs 280.95 crore, down 17.33% from Rs 339.84 crore reported in Q3 FY23.

EBITDA slipped 17% year on year to Rs 504 crore in the quarter ended 31 December 2023.

The company’s growth trajectory remained steady with a volume growth of 5% YoY in Q3 FY24 Consumer demand in packaged staple foods stayed strong during the festive season of Q3. The branded products that comprises around 80% of edible oils and Foods & FMCG sale, grew faster than the overall sales in both segments. Rural sales also stayed steady for the company.

In the nine months ended December 2023, the company reported aconoslidaed net profit of Rs 8.76 crore as against a net profit of Rs 488.51 crore posted in 9M FY23. Revenue declined 14.19% YoY to Rs 38,023.59 crore in 9M FY24.

In edible oil segment, revenue stood at Rs 9,711 crore in Q3 FY24, up 7% on QoQ basis. In YoY terms, revenue is optically lower by 23% YoY in Q3 FY24, as product pricing has been lower during the year, in-line with lower raw-material costs. The volume was flat YoY in Q3 FY24 and grew by 8% YoY during 9M FY24. Branded products grew by 3% YoY in Q3 and 15% YoY in 9M FY24.

The growth in edible oils segment continues to be driven by strong growth in sunflower oil and mustard oil, which have been growing faster than the industry due to strong brand equity, the company stated.

In Food & FCMG segment, revenues grew at 25% YoY in Q3 FY24, with an underlying volume growth of 17% YoY. In 9M FY24, the segment delivered a turnover of Rs 3,653 crore, recording a growth of 26% YoY.

Exports restriction has been a drag on Foods growth in the last three quarters. In the domestic market, branded products revenue has been growing at more than 40% YoY for last nine quarters.

The industry essentials segment recorded a revenue of Rs 1,844 crore in Q3 FY24 and Rs 5,777 crore in 9M FY24. The volume grew by 17% YoY in Q3 FY24 and 21% YoY in 9M FY24, supported by robust growth in Castor & Oleochemical businesses.

Angshu Mallick, MD & CEO, Adani Wilmar said, “We continued to witness the growth momentum in packaged staple foods driven by shift in consumer preferences for hygienic and quality products. The revenues from the branded products in the domestic market, under the Food & FMCG segment have been growing at 40%+ YoY in the past 9 quarters enabling us to close FY’24 with an estimated around Rs 5,000 crore of revenue in the segment.

We are putting our energies in rapidly scaling up our distribution network for general trade to realize the immense opportunity available in the packaged staple foods. At the same time, we are developing our hotels, restaurants and cafes (HORECA) and exports channels which will continue to witness much faster growth in the near future. Our strong market share in the alternate channels put us in advantaged position from the fast-growing rate of this channel.”

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.

Shares of Adani Wilmar shed 0.46% to Rs 356.15 on the BSE.

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Net profit of Adani Wilmar declined 18.39% to Rs 200.89 crore in the quarter ended December 2023 as against Rs 246.16 crore during the previous quarter ended December 2022. Sales declined 16.90% to Rs 12828.36 crore in the quarter ended December 2023 as against Rs 15438.05 crore during the previous quarter ended December 2022.

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Adani Wilmar will hold a meeting of the Board of Directors of the Company on 31 January 2024.

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The company said that it continued to grow well during the quarter. In the branded oil and foods, the firm benefited from the elevated demand from the festive and wedding season and recorded the best-ever volumes during the quarter, growing over a strong base quarter. Rural sales were also robust with continued demand for branded staples.

During the quarter, Adani Wilmar recorded overall volume growth of 6%, however, lower pricing of edible oils in line with the fall in the cost of raw materials (crude edible oils), resulted in a revenue decline of 15% YoY.

In the edible oil segment, the overall sales volume remained flat YoY, due to lower demand from institutional customers.

The firm added that the segment began the quarter on a high note and witnessed the highest ever sale volume in October, driven by strong demand resulting from the festive and wedding season. However, post-Diwali sales were subdued due to excessive buying prior to the season. In December month, falling edible oil prices led to destocking at distributors and retailers impacting the sales volume.

The business continues to focus on improving the reach and quality of distribution, particularly in Rural areas & South, gaining market share in under-indexed states and strengthening the ‘Fortune’ and ‘King’s’ brands.

With the easing of the global edible oil prices, the company’s branded edible oils volume growth has been strong during the year, with 4% YoY growth during the quarter and 16% YoY growth in 9M FY24. The overall edible oils segment registered a growth of 9% YoY in 9M FY24.

The Food & FMCG segment revenue jumped 28% YoY during the quarter, despite the drag of restrictions on rice exports.

Adani Wilmar stated that the wheat business has been making multiple interventions in southern states, where branded penetration of industry is higher, along with higher profitability. The business also leased additional wheat milling capacity in the South, enabling it to ensure freshness of product and distribute in smaller lots. This has significantly improved the volume offtake, increased the penetration in retail outlets and led to strong demand for our products from the retailers in the South.

The firm said that its rice business has seen healthy growth in both Basmati and Regional rice with an integrated play of two brand strategy - Kohinoor and Fortune. In Q2 FY24, the company launched the biryani kit under the Fortune brand in the export market, which accounted for over 40% volume of packs sold during Q3, it added.

In both oil and foods, branded products account for around 80% of the business and have been growing at a faster rate.

In the Food & FMCG segment, revenue from branded products in the domestic market has been growing at 40% YoY or higher for the last nine quarters. On the export front, the food business has been impacted by the restrictions on exports for the last three quarters.

As the food business is scaling-up and has built a steady consumer demand, it enables the firm to better leverage its edible oil distributors. The company is also focused on improving the sales capabilities of its general trade distribution system. With the large headroom available for distribution expansion, the focus stayed on increasing its network, particularly in rural towns and southern states, ensuring a deeper penetration in existing towns and higher throughput from penetrated outlets.

The company is on track to more than double its rural town coverage during the financial year from about 13,000 towns to more than 30,000 rural towns by the end of this financial year. The throughput of the new outlets will gradually increase in the coming years. The company is also increasing its digitalization efforts to improve the fill rates, the FMCG company stated in the press release.

Adani Wilmar, a joint venture between Adani Group of India and Wilmar Group of Singapore, is one of the largest consumer Food FMCG companies in India. The company has a diversified product portfolio offering most of the primary kitchen essentials including edible oil, wheat flour, rice, pulses, besan and sugar with market leading positions across products.

The company reported consolidated net loss of Rs 131 crore in Q2 FY24 as compared with net profit of Rs 49 crore in Q2 FY23. Revenue from operations dropped 13% to Rs 12,267 crore in Q2 FY24 from Rs 14,150 crore in Q2 FY23.

Shares of Adani Wilmar fell 0.93% to close at Rs 377.95 on Friday, 5 January 2024.

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Net loss of Adani Wilmar reported to Rs 130.73 crore in the quarter ended September 2023 as against net profit of Rs 48.76 crore during the previous quarter ended September 2022. Sales declined 13.31% to Rs 12267.15 crore in the quarter ended September 2023 as against Rs 14150.03 crore during the previous quarter ended September 2022.

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