On Wednesday, Adani Wilmar announced a volume gain of 25% year over year for the quarter ended June 30. This growth was primarily driven by strong consumer demand for foods and edible oils. According to the company’s regulatory filing, sales of branded items in edible oils and foods have outperformed those of the corresponding divisions as a whole.
However, the business said that due to a steep drop in the price of edible oil, revenues in value terms fell 15% YoY. On the strength of ongoing strong consumer demand as well as the weak base of the equivalent quarter in FY23, the edible oil business rose by 25% YoY in volume terms during the quarter.
The food and FMCG business saw sales increase by 30% during the first quarter of current fiscal year compared to the same period last year, surpassing Rs 1,000 crore, according to Adani Wilmar. According to the company, the food category saw volume increase of 20% over the previous year while the FMCG segment saw growth of 30% over the same period.
Strong demand has been seen in both urban and rural regions, the business said, adding that oil and foods continued to develop quickly via alternative channels (e-commerce, MT, and eB2B, among others) and saw almost 50% volume increase year over year for the quarter. The business said that it remained committed to increasing the distribution of both food and oil goods through the general commerce channel.
The business noted that during the first quarter of current fiscal, distribution was expanded to more locations and new client accounts were acquired, which contributed to the sustained strong growth in the sale of branded products to HoReCa (hotels, restaurants, and catering) clients. In the first quarter of FY24, the business of industry basics saw volume growth of 20% YoY.
However, due to a sharp correction in the prices of oleo and castor goods, which together account for around 70% of this segment’s income, the revenues fell by 15% YoY. The business said that the significant volume rise was largely fueled by successful crush operations and exports of animal feed products. On the BSE, shares of Adani Wilmar ended on Wednesday at Rs 406.95, down 0.20 percent.
