Adani Wilmar, a fast-moving consumer goods (FMCG) company, reported a 67% growth in its consolidated net profit to INR 157 crore for the quarter ended March 2024. This marks a significant increase from INR 94 crore in the year-ago quarter.
During the reporting period, revenue from operations experienced a 5% year-on-year decline to INR 13,238 crore. This contrasts with the company’s revenues of INR 13,872 crore in the same period last year.
The company noted robust growth in sales volume, particularly in its edible oils and foods segments, both for the quarter and the entire fiscal year. This growth was primarily driven by increased retail presence.
Although edible oils saw an 11% increase and food and FMCG products experienced a 9% rise in volume, a notable decrease in the export of oil meals contributed to an overall volume growth of 3% year-on-year in the March quarter.
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Breaking it down by segment, the edible oil division achieved revenues of INR 10,195 crore in the fourth quarter, accompanied by an 11% year-on-year growth in volume.
The growth rate of domestic branded sales volume surged even faster at 13% year-on-year, outpacing the overall growth. This marks the second consecutive year of faster growth in the branded portfolio, leading to notable gains in market share.
In the fourth quarter, the food and FMCG segment generated revenue of INR 1,341 crore, reflecting a solid underlying volume growth of 9% year-on-year.
In the fiscal year 2024, domestic revenue and volume both surged by 39%, while export volumes of rice plummeted by 46% due to imposed export restrictions.
Consequently, the overall food and FMCG revenue soared by 23% year-on-year, reaching INR 4,944 crore. Revenue from branded products in the domestic market has exhibited consistent year-on-year growth of over 30% for the past 10 quarters.
In the fourth quarter, the industry essentials business reported revenue of INR 1,702 crore, and for the fiscal year 2024, it amounted to INR 7,479 crore. However, the segment witnessed a 22% year-on-year decline in volume during the March quarter, largely attributed to a 45% decrease in the oil meal business.
“Our edible oils and foods business sustained robust volume growth, propelled by expanded retail presence. Our focused sales & marketing strategies, along with a regional approach in each category, are driving market share gains from local competitors,” stated Angshu Mallick, MD & CEO.
Adani Wilmar stock concluded Tuesday’s trading session 4.6% up, reaching INR 359 on the NSE.
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