Adani Wilmar sees 15% decline in sales on fall in edible oil prices in Q1
Adani Wilmar said on Wednesday that first-quarter sales has declined by 15 per cent on sharp fall in edible oil prices eclipsed strong demand for its food products. Edible oil prices have been on a decline since last year, hit by lower consumer demand in developed economies, easing of supply in the Black Sea region and strong production of oilseeds.
Adani Wilmar saw double-digit growth in terms of volume at 25 per cent year-on-year (YoY) on robust consumer demand. The sale of branded products in both edible oils and foods has been stronger compared to overall sales of respective segments. “While the volume growth was strong, the sales value decline on YoY basis is reflective of the sharp decline in edible oil prices," said Adani Wilmar in its filing.
Sales in its food and fast moving consumer goods segment grew 30 per cent on strong demand, to cross ₹1,000 crore of revenue for the quarter on a standalone basis. This was the eighth consecutive quarter in which the sector saw over 20 per cent volume growth and over 30 per cent revenue growth, on YoY basis, for the food & FMCG segment.
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 Q1FY23. “The base quarter demand was disrupted by high edible oil prices with the onset of the Russia-Ukraine conflict.
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