Adani Wilmar Q4 results: Net profit up 59% to Rs 156 crore, revenue down 3%
Adani Wilmar's Q4 profit soars 59% to Rs 156 crore; revenue dips 3% to Rs 12,703 crore; edible oils, food segments grow; market share increases.
Adani Wilmar reported a 59% increase in its standalone net profit to Rs 156 crore for the quarter ended March 31, 2024. This surge was compared to a net profit of Rs 98 crore in the same period the previous year. Adani Wilmar, a joint venture between Adani Enterprises and Wilmar International, is known for selling various edible oil variants, including mustard, sunflower, and soybean. While the net profit showed substantial growth, revenue from operations saw a 3% decline to Rs 12,703.64 crore from Rs 13,121.89 crore in the same quarter of the previous fiscal year. This decrease was primarily attributed to a significant decline in the export business of oil meals. However, there was growth in edible oils and food & FMCG segments by 11% and 9%, respectively, in volume terms. The company attributed its market share gains in Sunflower Oil to regional marketing communications and other interventions. Additionally, the company highlighted its increased agility in making decisions for dynamic pricing in local markets, thanks to the increased digitalization of its sales function.
In terms of segment-wise performance: Edible Oils: This segment recorded revenue of Rs 10,195 crore in Q4 and Rs 38,788 crore in FY24. The volume grew by 11% YoY in Q4 and 9 percent YoY in FY’24. 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, resulting in market share gains. Food & FMCG: This segment recorded revenue of Rs 1,341 crore in Q4, with underlying volume growth of 9% YoY for the quarter. In FY24, the domestic revenue and volume both grew by 39%, whereas export volumes of rice declined by 4%, due to export restrictions. Overall, Food & FMCG revenue grew by 23% YoY, resulting in revenues of Rs 4,944 crores. Industry Essentials: This segment recorded revenue of Rs 1,702 crore in Q4 and Rs 7,479 crore in FY24.
The segment’s volume declined by 22% YoY in Q4, primarily due to the decline in the oil meal business by 45%. However, Oleo-chemicals and Castor businesses grew by 19 percent and 4 percent, respectively. Angshu Mallick, MD & CEO, commented on the results, highlighting the strong volume growth in the edible oils & foods business driven by increased retail penetration. He also mentioned the improvement in the branded mix of edible oils during the year, leading 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 in the current quarter, with the brand “Rupchanda” remaining the market leader in Bangladesh in the Edible Oil category. In conclusion, Adani Wilmar's financial results for the quarter ended March 31, 2024, showed a significant increase in net profit, driven by growth in the edible oils and food & FMCG segments. The company's strategic initiatives, including digitalization of sales functions and regional marketing communications, have contributed to its market share gains and improved profitability.
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