Adani Wilmar on Wednesday reported a 25 percent year-on-year volume growth during the quarter ending June 30, mainly on account of robust consumer demand in edible oils and foods.
According to a regulatory filing, Adani Wilmar stated that the sales of branded products in the edible oils and foods category have significantly outperformed the overall sales of their respective segments.
However, the sales in value terms declined 15 percent YoY following a sharp decline in the edible oil prices, the company added.
The volume of the edible oil business experienced a significant 25 percent year-on-year growth during the quarter. This expansion can be attributed to robust consumer demand and the favorable comparison to the corresponding quarter in FY23, which had a weaker performance.
Adani Wilmar further said that the food and FMCG segment recorded a revenue growth of 30 percent during the first quarter of this fiscal compared to last year, crossing INR 1,000 crore.
This was the eighth consecutive quarter with 20 percent year-on-year volume growth in the food segment and 30 percent in the FMCG segment, it said.
Both urban and rural areas have witnessed strong demand, the company said, adding that the oil and foods continued to grow at a rapid pace in the alternate channels (e-commerce, MT, eB2B among others) and recorded around 50 percent year-on-year volume growth for the quarter.
The company said it continued its focus on expanding the distribution of both oil and food products in the general trade channel.
The sale of branded products to HoReCa (hotels, restaurants and catering) clients continued to grow strongly during the first quarter of this fiscal with distribution expansion in more cities and acquisition of new client accounts, the company added.
The industry essentials business grew by 20 percent YoY by volume in the first quarter of FY24.
However, the revenues declined by 15 per cent YoY due to steep correction in prices of oleo and castor products, which together contribute around 70 percent of this segment’s revenue.
The strong volume growth was primarily driven by good crush operations and exports of animal feed products, the company added.
Shares of Adani Wilmar on Wednesday closed at INR 406.95, down 0.20 percent, on the BSE.
