Adani Wilmar Ltd Share Price – NSE  /  BSE

Edible Oil, Small Cap

With a robust product portfolio, the company is actively pursuing substantial opportunities by executing strong sales and distribution strategies in general trade.

Moreover, the firm’s alternate channels like e-commerce, quick commerce and MT maintained their momentum with 19% year on year volume growth in Q1. The volume of its branded exports increased by 36% YoY in the June quarter.

Segment-wise, Adani Wilmar’s edible oil volume increased 13% YoY, while the sales value for the segment jumped 10% YoY.

Despite challenges in the industry during the quarter, including decreased out-of-home consumption and seasonal dips in summer demand, the firm’s business thrived due to robust execution in sales and distribution, bolstered by its ongoing efforts to improve retail penetration, said the company.

The edible oil major stated that it has consistently expanded its market presence, driving robust growth amidst a fragmented market landscape. Sunflower oil continued to gain market share in South India on the back of our regional interventions.

The company added that the food products demonstrated strong growth by harnessing the well-established and widely penetrated distribution network of edible oils, along with increasing trials through strategic bundling and trade schemes.

The volumes for the segment surged 46% while sales value jumped 45%.The quarter's growth was additionally supported by sales of non-basmati rice to Government appointed agencies for exports. Even after normalizing this aspect, the Food & FMCG business volume grew by 23% YoY.

In the Wheat business, the packaged atta industry has experienced a significant slowdown in growth over the past three quarters, the company has maintained a robust growth trajectory. This has been driven by an expanded presence in retail outlets and households and increased repeat purchases.

Further, the firm said that its wheat business has made notable gains in the South market. Overall, its market share in wheat flour has continued to expand.

In the Rice business, the Company is implementing several initiatives to drive robust growth. By utilizing its distribution network, the business has expanded its presence in numerous outlets. The quarter saw good growth, bolstered by a successful promotional event in collaboration with a major retailer, Adani Wilmar stated in the press release.

Revenue from branded products in the domestic market has consistently grown at a rate exceeding 30% YoY for the past eleven quarters. The company anticipates that strong growth in food volume will persist.

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 surged 67.45% to Rs 156.75 crore in Q4 FY24 as against Rs 93.61 crore posted in Q4 FY23. Revenue from operations stood Rs 13,238.04 crore in Q4 FY24, down 4.57% from Rs 13,872.64 crore recorded in the corresponding quarter previous year.

The scrip shed 0.25% to end at Rs 332.90 on Friday, 5 July 2024.

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Adani Wilmar announced that the 26th Annual General Meeting (AGM) of the company will be held on 26 June 2024.

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Revenue from operations stood Rs 13,238.04 crore in Q4 FY24, down 4.57% from Rs 13,872.64 crore recorded in the corresponding quarter previous year.

Profit before tax climbed 63.18% year on year to Rs 210.89 crore during the quarter.

Edible oils grew by 11% and Food & FMCG by 9% in volume terms, a significant decline in the export business of oil meals dragged down the overall volume growth to 3% YoY in Q4 FY24.

The company said that its sales volume continued to grow well, and it has witnessed strong volume growth in both edible oils and foods businesses during the quarter and for the full year, driven by increased retail penetration.

During the period under review, the edible oil segment recorded revenue of Rs 10,195 crore (down 6% YoY) while Food & FMCG segment’s revenue was at Rs 1,341 crore (up 16% YoY).

The Industry Essentials segment recorded revenue of Rs 1,702 crores in Q4 FY24, down 12% from Rs 1,924 crore posted in Q4 FY23. The volume declined by 22% YoY in Q4’24. This is due to the decline in the oil meal business by 45%. Oleo-chemicals and Castor businesses grew by 19% and 4% respectively.

In recent quarters, the company has made significant improvement in its distribution infrastructure in the southern region. Regional marketing communications and other interventions have resulted in the company gaining market share in Sunflower Oil. With the increased digitalization of sales function, the company has improved its agility in making decisions for dynamic pricing in the local markets, it added.

On full year basis, the company’s consolidated net profit tumbled 74.58% to Rs 147.99 crore on 11.9% fall in revenue to Rs 51,261.63 crore in FY24 over FY23.

In Edible oils, the domestic branded sales volume grew at a faster clip at 13% YoY in FY24, compared to overall growth. This is the second consecutive year with faster growth in the branded portfolio, which has resulted in the market share gains.

The company stated that it has also been gaining market share in its key products. In edible oils, ROCP (refined oil consumer pack) market share of AWL has increased by 60bps to 19% on MAT basis. In wheat flour, its market share has increased by 60bps to 5.6%.

For Food & FMCG segment, the domestic revenue and volume both grew by 39% in FY24, whereas export volumes of rice declined by 46%, due to export restrictions. As a result, overall Food & FMCG revenue grew by 23% YoY resulting in revenues of Rs 4,944 crore. The revenue from branded products in the domestic market has been growing consistently YoY at over 30% for the last ten quarter.

The hotels, restaurants and cafes (HORECA) segment has crossed Rs 400 crore of revenue in FY24, a feat achieved within 1.5 years of setting up a dedicated HORECA distribution channel. This segment has an estimated addressable market of over Rs 65,000 crore for edible oils & foods.

The profitability of the company recovered in H2 of FY24, after witnessing subdued profits due to highprice inventory and dis-alignment of the hedges in H1 FY24. In H2 FY24, the PAT grew by 5% YoY to Rs 358 crore, compared to Rs 340 crore in H2 FY23.

Angshu Mallick, MD & CEO, Adani Wilmar, said, “We continued to witness strong volume growth in our edible oils & foods business driven by increased retail penetration. A focused approach in sales & marketing and regional approach in each category is leading to gaining market share from the local players. The adoption of our Integrated Business model strategy allows us to effectively compete with large and regional players.

With fast-growing volumes, the company has achieved major milestones during the year. In fiscal FY’24, Food & FMCG business reached 1 million MT in sales and overall company surpassed 6 million MT in sales. Revenue in Food & FMCG segment has nearly doubled in last 2 years to reach almost INR 5,000 crores in FY’24. Improvement in branded mix in edible oils during the year has also led to better profitability for the Company in the second half.

The challenges faced by the company in Bangladesh operations have been overcome with the improved forex situation and fundamentals of the economy. The operations have come back to normalcy this quarter. Our brand “Rupchanda” remains the market leader in Bangladesh in the Edible Oil category.”

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 declined 1.51% to Rs 352.05 on the BSE.

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Net profit of Adani Wilmar rose 67.45% to Rs 156.75 crore in the quarter ended March 2024 as against Rs 93.61 crore during the previous quarter ended March 2023. Sales declined 4.57% to Rs 13238.04 crore in the quarter ended March 2024 as against Rs 13872.64 crore during the previous quarter ended March 2023.

For the full year,net profit declined 74.58% to Rs 147.99 crore in the year ended March 2024 as against Rs 582.12 crore during the previous year ended March 2023. Sales declined 11.90% to Rs 51261.63 crore in the year ended March 2024 as against Rs 58184.81 crore during the previous year ended March 2023.

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