Adani Wilmar Limited : FY’24 revenue at INR 51,262 Crores

The Company’s sales volume continues to grow well, and we have witnessed strong volume growth in  both edible oils and foods businesses during the quarter and for the full year, driven by increased retail  penetration. 

The Company recorded revenue of INR 13,238 crores in Q4’24. While edible oils grew by 11% and Food &  FMCG by 9% in volume terms, a significant decline in the export business of oil meals dragged down the  overall volume growth to 3% YoY in Q4’24. 

The Company has also been gaining market share in its key products. In edible oils, ROCP (Refined Oil  Consumer Pack) market share of AWL has increased by 60bps to 19.0% on MAT basis. In Wheat Flour, our  market share has increased by 60bps to 5.6%. 

In recent quarters, the Company has made significant improvement in its distribution infrastructure in the  southern region. Regional marketing communications and other interventions have resulted in the  company gaining market share in Sunflower Oil. With the increased digitalization of sales function, the  Company has improved its agility in making decisions for dynamic pricing in the local markets. 

The HORECA segment has crossed INR 400 crores of revenue in FY’24, a feat achieved within 1.5 years of  setting up a dedicated HORECA distribution channel. This segment has an estimated addressable market  of INR 65,000+ crores for edible oils & foods. 

The profitability of the Company recovered in H2 of FY ’24, after witnessing subdued profits due to high price inventory and dis-alignment of the hedges in H1‘24. In H2 ’24, the PAT grew by 5% YoY to INR 358 crores, compared to INR 340 crores in H2’ 23. 

• Edible Oils 

The edible oil segment recorded revenue of INR 10,195 crores in Q4 and INR 38,788 crores in FY ’24. The  volume grew by 11% YoY in Q4 and 9% YoY in FY’24. 

The domestic branded sales volume grew at a faster clip at 13% YoY in FY’24, compared to overall growth.  This is the second consecutive year with faster growth in the branded portfolio, which has resulted in the  market share gains. 

• Food & FMCG 

The Food & FMCG segment recorded revenue of INR 1,341 crores in Q4, with an underlying volume growth  of 9% YoY for the quarter. 

In FY ’24, the domestic revenue and volume both grew by 39%, whereas export volumes of rice declined  by 46%, due to export restrictions. As a result, overall Food & FMCG revenue grew by 23% YoY resulting  in revenues of INR 4,944 crores. The revenue from branded products in the domestic market has been  growing consistently YoY at over 30% for the last ten quarters. 

In the strong markets of edible oil, the Food segment has been leveraging the outlet penetration to drive  its growth. 

• Industry Essentials 

The Industry Essentials segment recorded revenue of INR 1,702 croresin Q4 and INR 7,479 croresin FY’24. The segment’s volume declined by 22% YoY in Q4’24. This is due to the decline in the oil meal business by  45%. Oleo-chemicals and Castor businesses grew by 19% and 4% respectively. For the financial year FY’24,  segment volume grew by 8%, with 13% YoY growth in Oleo-chemicals and 2% YoY growth in castor  business. The oil meal business also grew well at 9% YoY growth. 

Commenting on the results, Mr. Angshu Mallick, MD & CEO, Adani Wilmar Limited said: “We continued to witness strong volume growth in our edible oils & foods business driven by increased  retail penetration. A focused approach in sales & marketing and regional approach in each category is  leading to gaining market share from the local players. The adoption of our Integrated Business model  strategy allows us to effectively compete with large and regional players. 

With fast-growing volumes, the Company has achieved major milestones during the year. In fiscal FY’24, Food & FMCG business reached 1 million MT in sales and overall Company surpassed 6 million MT in sales. Revenue in Food & FMCG segment has nearly doubled in last 2 years to reach almost INR 5,000 crores in  FY’24. 

Improvement in branded mix in edible oils during the year has also led to better profitability for the  Company in the second half, with reported PAT in H2 ’24 of INR 358 crores and INR 404 crores on a  consolidated and standalone basis respectively. 

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 this  quarter. Our brand “Rupchanda” remains the market leader in Bangladesh in the Edible Oil category.