Adani Wilmar Q1 Update: Volumes jump 25% YoY, but sales drop 15%
Adani Wilmar has delivered strong double-digit volume growth at 25% for the first quarter ended March. However, sales declined 15%, mainly due to sharp drop in edible oil prices. The edible oil business grew by 25% YoY in volume terms during the quarter, on the back of continued strong consumer demand as well as the weak base of Q1FY23.
But, the sale value for the segment too dropped 15% YoY. Since the first quarter of the last fiscal, the price of edible oils have been declining. This trend continued during the first quarter too.
«High-cost inventory in an environment of falling prices has exerted pressure on our profitability throughout the previous financial year, and this trend persisted during the first quarter as well,» the company said. The food and FMCG segment recorded revenue growth of 30%+ YoY to cross Rs 1,000 crore of revenue for the quarter on a standalone basis. This was the eighth consecutive quarter with 20%+ volume growth and 30%+ revenue growth, on YoY basis, for the segment.
The strong show in the segment was fueled by rapid growth in sales of branded products in the domestic market. «The shift in consumer preferences from unbranded to branded products is leading to a faster growth of branded food products,» a company statement read. The majority of the company's branded food products recorded a volume increase of more than 25% for the quarter, with many of the new products seeing much faster growth.
Exports of non-basmati rice, meanwhile, decreased in terms of volume due to the continued restrictions on rice exports and levy of 20% export duty. For the industry essentials business, volumes rose 20% YoY in the first quarter. However, revenues declined by 15% YoY due to steep corrections in prices of
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