Adani Wilmar reports 25% YoY volume growth in Q1FY24 due to strong demand

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Adani Wilmar on Wednesday reported a 25 per cent year-on-year volume growth during the quarter ending June 30, mainly on account of robust consumer demand in edible oils and foods.


The sale of branded products in edible oils and foods has been much stronger compared to overall sales of respective segments, the company said in a regulatory filing.


However, the sales in value terms declined 15 per cent YoY following a sharp decline in the edible oil prices, the company added.


The edible oil business grew by 25 per cent YoY in volume terms during the quarter on the back of continued strong consumer demand as well as the weak base of the corresponding quarter in FY23.


Adani Wilmar further said that the food and FMCG segment recorded a revenue growth of 30 per cent during the first quarter of this fiscal compared to last year, crossing Rs 1,000 crore.


This was the eighth consecutive quarter with 20 per cent year-on-year volume growth in the food segment and 30 per cent 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 per cent 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 per cent 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 per cent 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 Rs 406.95, down 0.20 per cent, on the BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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