Adani Wilmar, a prominent player in the Fast-Moving Consumer Goods (FMCG) sector, has announced a combined deficit of INR 78.92 crore for the initial quarter (Q1) concluding on June 30, 2023. As per an official filing with regulatory authorities, the company had achieved a consolidated profit of INR 193.59 crore during the corresponding period in the previous financial year.
According to the filing with the Bombay Stock Exchange (BSE), the total revenue of the company also saw a decrease, reaching INR 12,994.18 crore in the first quarter of the fiscal year 2023-24, compared to INR 14,776.39 crore in the same period of the fiscal year 2022-23.
Nevertheless, the company managed to curtail its total expenses to INR 13,061.86 crore in the first quarter of the fiscal year 2023-24, marking a decrease when contrasted with the total expenses of INR 14,516.13 crore incurred in the first quarter of the fiscal year 2022-23.
Angshu Mallick, MD and CEO of the company said, “We have regained the momentum in our edible oil business with the decline in the edible oil prices. The soft prices of edible oil are expected to augur well for the industry.”
The company is gaining good share from regional brands in the under-indexed customer segments with marketing and sales focus on specific geographies and oil categories. To capture the opportunity in the value-added blended oils, the FMCG major is investing in this segment, under Xpert brand.
For the food and FMCG sector, this marked the eighth consecutive quarter of achieving growth, with volumes increasing by over 20 percent and revenues surging by more than 30 percent year-on-year for the standalone company. Acknowledging the urgent requirement of Indian households for authentic and consistent quality whole wheat products, the company introduced a range of four premium grades (including Sharbati) of Whole Wheat under the esteemed Fortune brand, catering to specific markets.
Mallick shared, “We developed a multi-purpose cleaner as a forward integration of our oleo-chemical products and launched this product under ‘Ozel’ band for HoReCa segment. Our margins during the quarter got impacted by high-cost inventory in a falling edible oil price environment and dis-aligned hedges compared to spot prices of physical commodity.”