Adani Wilmar on Thursday reported its fiscal second quarter profit at Rs 311.02 crore in comparison to a loss of Rs 130.73 crore reported during the corresponding quarter of FY24. It posted revenue from operations at Rs 14,460.45 crore, up 17.9 per cent as against Rs 12,267.15 crore during the same period of previous financial year. The company EBITDA stood at Rs 566 crore.
Adani Wilmar posted strong double-digit YoY growth of 12 per cent on volume. Edible oils and Food & FMCG segments delivered strong double-digit revenue growth of 21 per cent YoY and 34 per cent YoY respectively. The strong growth in staple foods was partially offset by the decline in the Industry Essential segment, it said.
Angshu Mallick, MD & CEO, Adani Wilmar Limited, said, “The company’s revenue grew by 18 per cent YoY to Rs 14,460 crore. We have delivered another strong quarter, with double digit growth in both edible oils and Food & FMCG segments. The edible oils revenue grew by 21 per cent YoY and the Food & FMCG revenue grew by 34 per cent YoY. The stability in edible oil prices augurs well for our business, allowing us to deliver strong profits over the past four quarters. In H1’25, we achieved our highest-ever half-year operating EBITDA of Rs 1,232 crore and PAT of Rs 624 crore.”
The company board also approved the formulation of ‘AWL – Employee Stock Option Scheme 2024’. The ESOP scheme is being formulated to reward its employees and align their interests with the Company’s long-term objectives. “Under this scheme, the Board has authorized the granting of employee stock options totaling up to 1.29 crores (1% of total shares) to the eligible employees of the Company and its subsidiaries,” it said in a regulatory filing.
Q2 performance across segments
Edible Oils: In Q2, the edible oil segment posted revenue growth of 21 per cent YoY to Rs 10,977 crore, with an underlying volume growth of 17 per cent YoY. The growth, it said, was driven by strong performance in Soyabean, Sunflower and Mustard oils. To further differentiate the brand, it launched special packaging for its Kachi Ghani Mustard Oil for the Hilsa festival in West Bengal.
Food & FMCG: In Q2, the Food & FMCG segment’s revenue grew by 34 per cent to Rs 1,718 crore, with an underlying volume growth of 33 per cent YoY. Excluding the G2G exports business, the volume growth of our Food & FMCG business was at 21 per cent YoY. In the Wheat business, the company continues to grow strongly. Adani Wilmar said that the sales also benefited from the introduction of small pack sizes in markets with lower per capita consumption. In Q2, branded sales of pulses, besan, soya nuggets, sugar, poha, and soap showed strong double-digit growth YoY.
Industry Essentials: In Q2, the Industry Essentials segment recorded revenue decline of 9 per cent at Rs 1,766 crore. During the quarter, the industry essential segment’s volume and value declined due to lower sales in Oleo, Castor meals and oil meal business. “Our Oleo production at Mundra plant was impacted due to the heavy rains. We expect this business to return to normalized levels from the next quarter onwards,” it said.
Adani Wilmar’s distribution network
Adani Wilmar has been expanding its distribution network to access more towns and has reached over 36K rural towns directly by the end of Sep’24. The goal, it added, is to reach 50K+ rural towns by the end of FY25 and drive the penetration of outlets and volume offtake in the new outlets.
In Q2, revenue from alternate channels increased at a strong double digit rate YoY, with revenue over the past 12 months exceeding Rs 3,000 crore. The e-commerce channel has seen even more rapid growth, with its revenue increasing by around four times in the last four years.
Angshu Mallick added, “On the back of Trust and Quality, along with branding investments, our flagship brand ‘Fortune’ has been gaining good acceptance with consumers for the entire range of kitchen essentials. This along with the increasing retail penetration and new towns reach is leading to strong growth in our banded portfolio. Our other food products like pulses, besan, soya chunks, poha has also been growing in strong double digit and they in aggregate have now reached Rs 1,500 crore on LTM basis. Our overall Food & FMCG business has crossed Rs 5,800 crore on LTM basis and we stay committed to build a very large packaged food business in India.”
From: financialexpress
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