Adani Wilmar Ltd Share Price – NSE  /  BSE

Edible Oil, Small Cap

Adani Wilmar will hold a meeting of the Board of Directors of the Company on 1 May 2024.

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While the company grew by strong double-digits in both edible oils and foods, a significant decline in the export business of animal feed dragged down the overall volume growth to 4% YoY in Q4FY24.

In Q4, the segment’s revenue grew strongly by 18% YoY driven by strong domestic sales, despite the negative impacts of the continued export restrictions. In strong markets of edible oil, the Food segment is leveraging the outlet penetration to drive its growth.

The company benefited from the strong demand during the festive occasion of Holi and the ongoing wedding season.

In FY2024, in edible oils, branded sales grew at a faster clip at 15%, compared to the overall segment growth of 10% YoY. This is the second consecutive year with faster growth in the branded portfolio.

In FY2024, the Food & FMCG segment has achieved the milestone of 1mn MT of sales. In just two years segment’s revenue has nearly doubled to approximately Rs 4,700 crore. The revenue from branded products in the domestic market has been growing at 30% YoY or higher for the last ten quarters

Adani Wilmar is a provider of Edible Oil, Vanaspati, and Specialty Fats. The company offers soyabean oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, groundnut oil, and coconut oil, as well as vegetable ghee. The company is one of the largest FMCG companies in India.

The edible oil major’s consolidated net profit declined 18.39% to Rs 200.89 crore on 16.9% fall in revenue from operations to Rs 12,828.36 crore in Q3 FY24 over Q3 FY23.

The counter fell 0.71% to settle at Rs 352 on Friday, 5 April 2024.

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Despite good volume growth, revenue is optically lower in Q3 FY24, as product pricing has been lower during the year, in-line with lower raw-material costs.

Profit before tax in Q3 FY24 was at Rs 280.95 crore, down 17.33% from Rs 339.84 crore reported in Q3 FY23.

EBITDA slipped 17% year on year to Rs 504 crore in the quarter ended 31 December 2023.

The company’s growth trajectory remained steady with a volume growth of 5% YoY in Q3 FY24 Consumer demand in packaged staple foods stayed strong during the festive season of Q3. The branded products that comprises around 80% of edible oils and Foods & FMCG sale, grew faster than the overall sales in both segments. Rural sales also stayed steady for the company.

In the nine months ended December 2023, the company reported aconoslidaed net profit of Rs 8.76 crore as against a net profit of Rs 488.51 crore posted in 9M FY23. Revenue declined 14.19% YoY to Rs 38,023.59 crore in 9M FY24.

In edible oil segment, revenue stood at Rs 9,711 crore in Q3 FY24, up 7% on QoQ basis. In YoY terms, revenue is optically lower by 23% YoY in Q3 FY24, as product pricing has been lower during the year, in-line with lower raw-material costs.The volume was flat YoY in Q3 FY24 and grew by 8% YoY during 9M FY24. Branded products grew by 3% YoY in Q3 and 15% YoY in 9M FY24.

The growth in edible oils segment continues to be driven by strong growth in sunflower oil and mustard oil, which have been growing faster than the industry due to strong brand equity, the company stated.

In Food & FCMG segment, revenues grew at 25% YoY in Q3 FY24, with an underlying volume growth of 17% YoY. In 9M FY24, the segment delivered a turnover of Rs 3,653 crore, recording a growth of 26% YoY.

Exports restriction has been a drag on Foods growth in the last three quarters. In the domestic market, branded products revenue has been growing at more than 40% YoY for last nine quarters.

The industry essentials segment recorded a revenue of Rs 1,844 crore in Q3 FY24 and Rs 5,777 crore in 9M FY24. The volume grew by 17% YoY in Q3 FY24 and 21% YoY in 9M FY24, supported by robust growth in Castor & Oleochemical businesses.

Angshu Mallick, MD & CEO, Adani Wilmar said, “We continued to witness the growth momentum in packaged staple foods driven by 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%+ YoY in the past 9 quarters enabling us to close FY’24 with an estimated around Rs 5,000 crore of revenue in the segment.

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 hotels, restaurants and cafes (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 advantaged position from the fast-growing rate of this channel.”

Adani Wilmar is a provider of Edible Oil, Vanaspati, and Specialty Fats. The company offers soyabean oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, groundnut oil, and coconut oil, as well as vegetable ghee. The company is one of the largest FMCG companies in India.

Shares of Adani Wilmar shed 0.46% to Rs 356.15 on the BSE.

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Net profit of Adani Wilmar declined 18.39% to Rs 200.89 crore in the quarter ended December 2023 as against Rs 246.16 crore during the previous quarter ended December 2022. Sales declined 16.90% to Rs 12828.36 crore in the quarter ended December 2023 as against Rs 15438.05 crore during the previous quarter ended December 2022.

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