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Business EconomyPosted at: May 1 2024 5:44PM


Adani Wilmar Food & FMCG segment reaches milestone of almost INR 5,000 Cr in FY’24, and nearly doubles in 2 years

Ahmedabad, May 01 (UNI) Adani Wilmar’s sales volume continued to grow well, witnessing strong volume growth in both edible oils and foods businesses during the quarter and for the full year, driven by increased retail penetration.

The Company recorded revenue of INR 13,238 crores in Q4’24. While edible oils grew by 11 per cent and Food & FMCG by 9 per cent in volume terms, a significant decline in the export business of oil meals dragged down the overall volume growth to 3 per cent YoY in Q4’24.

The Company 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 60 bps to 19.0 per cent on MAT basis. In Wheat Flour, our market share has increased by 60 bps to 5.6 per cent.

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.

The HORECA segment has crossed INR 400 crores of revenue in FY’24, a feat achieved within 1.5 years of setting up a dedicated HORECA distribution channel. This segment has an estimated addressable market of INR 65,000+ crores for edible oils & foods.

The profitability of the Company recovered in H2 of FY ’24, after witnessing subdued profits due to high-price inventory and dis-alignment of the hedges in H1‘24. In H2 ’24, the PAT grew by 5 per cent YoY to INR 358 crores, compared to INR 340 crores in H2’ 23.

The edible oil segment recorded revenue of INR 10,195 crores in Q4 and INR 38,788 crores in FY ’24. The volume grew by 11 per cent YoY in Q4 and 9 per cent YoY in FY’24.
The domestic branded sales volume grew at a faster clip at 13 per cent YoY in FY’24, 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 Food & FMCG segment recorded revenue of INR 1,341 crores in Q4, with an underlying volume growth of 9 per cent YoY for the quarter.

In FY ’24, the domestic revenue and volume both grew by 39 per cent, whereas export volumes of rice declined by 46 per cent, due to export restrictions. As a result, overall Food & FMCG revenue grew by 23 per cent YoY resulting in revenues of INR 4,944 crores. The revenue from branded products in the domestic market has been growing consistently YoY at over 30 per cent for the last ten quarters.

In the strong markets of edible oil, the Food segment has been leveraging the outlet penetration to drive its growth.

The Industry Essentials segment recorded revenue of INR 1,702 crores in Q4 and INR 7,479 crores in FY’24.
The segment’s volume declined by 22 per cent YoY in Q4’24. This is due to the decline in the oil meal business by 45 per cent. Oleo-chemicals and Castor businesses grew by 19 per cent and 4 per cent respectively. For the financial year FY’24, segment volume grew by 8 per cent, with 13 per cent YoY growth in Oleo-chemicals and 2 per cent YoY growth in castor business. The oil meal business also grew well at 9 per cent YoY growth.

Commenting on the results, Angshu Mallick, MD & CEO, Adani Wilmar Limited, 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, with reported PAT in H2 ’24 of INR 358 crores and INR 404 crores on a consolidated and standalone basis respectively.
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.
UNI SJC KK
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Tags: #Adani Wilmar Food & FMCG segment reaches milestone of almost INR 5#000 Cr in FY’24# and nearly doubles in 2 years
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