Adani Wilmar's Revenue Falls By 17% In Q3 FY'24

Adani Wilmar’s growth trajectory remained steady with a volume growth of 5 per cent YoY in Q3’24 and 13 per cent YoY in 9m FY’24. Consumer demand for packaged staple foods stayed strong during the festive season of Q3. The branded products which comprise ~80 per cent of edible oils and foods & FMCG sales, grew faster than the overall sales in both segments. Rural sales also stayed steady for the brand. Despite good volume growth, revenue is optically lower by 17 per cent YoY in Q3, as product pricing has been low during the year, in line with low raw-material costs.

The brand recorded revenue of INR 12,828 crores in Q3 and INR 38,024 crores in 9m FY’24. The profitability of Adani Wilmar has again normalised with EBITDA at INR 504 cr. in Q3, after witnessing two quarters of subdued profits due to high-cost inventory and hedge dis-alignment. The profitability of the Bangladesh subsidiary continues to be under stress due to local currency issues. Standalone EBITDA was higher at INR 530 cr. in Q3.

It is progressively using more regional approaches to drive deeper penetration into the local markets. Adani Wilmar is on track to more than double its rural town coverage during the financial year from ~13,000 towns to 30,000+ rural towns by the end of this financial year. 

Key Highlights:

Edible Oil

The volume was flat YoY in Q3 and grew by 8 per cent YoY during 9m FY’24. Branded products have been growing at a faster pace. Branded products grew by 3 per cent YoY in Q3 and 15 per cent YoY in 9m FY’24. Refined oil consumer pack (ROCP) market share of AWL in edible oils reached 19.8 per cent in Dec ‘23 on MAT basis (Source: Nielsen), which is an improvement of 30 bps vis-à-vis the same period last year.

The segment recorded revenue of INR 9,711 crores in Q3, with sequential growth of 7 per cent compared to Q2. In YoY terms, revenue is optically lower by 23 per cent YoY in Q3 ‘24, as product pricing has been lower during the year, in line with lower raw-material costs.

Food & FMCG

The Food & FCMG segment continued to outperform. During the quarter, the segment revenues grew at 25 per cent YoY, with an underlying volume growth of 17 per cent YoY.

In 9m FY’24, the segment delivered a turnover of INR 3,653 crores, a robust growth of 26 per cent YoY.

Industry essentials

The industry essentials volume grew by 17 per cent YoY in Q3’24 and 21 per cent YoY in 9m FY’24, supported by robust growth in castor & oleochemical businesses. The segment recorded revenue of INR 1,844 in Q3 and INR INR 5,777 in 9m FY’24.

Commenting on the results, Angshu Mallick, MD & CEO, Adani Wilmar says, “We continued to witness the growth momentum in packaged staple foods driven by a shift in consumer preferences for hygienic and quality products. The revenues from the branded products in the domestic market, under the Food & FMCG segment have been growing at 40 per cent + YoY in the past 9 quarters enabling us to close FY’24 with an estimated ~INR 5,000 crores of revenue in the segment.

We are putting our energies into rapidly scaling up our distribution network for general trade to realise the immense opportunity available in 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. Our strong market share in the alternate channels put us in an advantaged position from the fast-growing rate of this channel.”