On Wednesday, Adani Wilmar, the FMCG division of the Adani Group, reported an 18% decrease in its profit for the December quarter on a year-on-year basis. The profit stood at INR 200.9 crore, contrasting with the INR 246.1 crore reported in the corresponding quarter of the previous year.
In the September quarter of FY24, the company incurred a loss of INR 130.7 crore.
The company witnessed a 17% year-on-year decline in revenue, amounting to INR 12,828.3 crore compared to INR 15,438 crore in the corresponding quarter of the previous year.
Nevertheless, the company attained its second-highest EBITDA to date, amounting to INR 504 crores in Q3.
The company’s profitability has once more stabilized, recording an EBITDA of INR 504 crore in Q3, following two quarters of subdued profits attributed to high-cost inventory and hedge disalignment. According to a BSE filing, the Bangladesh subsidiary’s profitability remains under pressure due to local currency issues.
“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 ~INR 5,000 crore of revenue in the segment,” said Angshu Mallick, MD & CEO, Adani Wilmar.
“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 HORECA and Exports channels which will continue to witness much faster growth in the near future,” Mallick said.
Adani Wilmar’s edible oil volume remained unchanged year-over-year in Q3, but experienced an 8% growth during the first nine months of FY24. Meanwhile, branded products saw a 3% year-over-year growth in Q3 and a substantial 15% increase in the nine-month period of FY24.
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In Q3, the edible oil segment generated INR 9,711 crores in revenue, reflecting a 7% sequential growth from Q2. However, in year-over-year (YoY) terms, the revenue appears to be 23% lower in Q3 FY24. This YoY decline is primarily attributed to reduced product pricing throughout the year, aligning with decreased raw-material costs.
The Food & FMCG sector, comprising items like wheat flour, rice, pulses, besan, sugar, poha, and soap, maintained strong performance. In the quarter, the segment witnessed a 25% year-over-year revenue increase, driven by a substantial underlying volume growth of 17% year-over-year.
During the first nine months of fiscal year 2024, the Food & FMCG segment achieved a turnover of INR 3,653 crores, reflecting a substantial year-over-year growth of 26%.
For the past nine consecutive quarters, there has been a consistent year-over-year growth of over 40% in the revenue of branded products in the domestic market.
The volume of industry essentials experienced a 17% year-over-year growth in Q3’24 and a 21% year-over-year growth in the first nine months of fiscal year 2024, driven by the expansion of Castor & Oleochemical businesses. The segment achieved a revenue of INR 1,844 in Q3 and INR 5,777 in 9M FY’24.
