Adani group’s FMCG arm Adani Wilmar on Wednesday reported an 18 per cent year-on-year (YoY) dip in its December quarter profit at Rs 200.9 crore as against Rs 246.1 crore in the year-ago quarter.
The company had reported a loss of Rs 130.7 crore in the September quarter of FY24.
Its revenue decreased by 17 per cent YoY to Rs 12,828.3 crore from Rs 15,438 crore in the same quarter of the previous year.
However, the company achieved the second-best EBITDA to date of Rs 504 crores in Q3.
The company’s profitability has returned to normal, with EBITDA of Rs 504 crore in Q3, following two-quarters of low earnings due to high-cost inventory and hedge misalignment. The profitability of the Bangladesh subsidiary is under pressure owing to local currency concerns, the company stated in a BSE statement.
“The revenues from the branded products in the domestic market, under the Food & FMCG segment have been growing at 40 per cent+ YoY in the past 9 quarters enabling us to close FY’24 with an estimated INR 5,000 crore of revenue in the segment,” said Angshu Mallick, MD & CEO, Adani Wilmar.
“We are putting our energies in rapidly scaling up our distribution network for General Trade to realize the immense opportunity available in the packaged staple foods. At the same time, we are developing our HORECA and Exports channels which will continue to witness much faster growth in the near future,” Mallick said.
The edible oil volume of Adani Wilmar was flat YoY in Q3 and grew by 8 per cent during 9M FY24. Branded products grew by 3 per cent YoY in Q3 and 15 per cent in 9M FY24.
The edible oil segment recorded revenue of Rs 9,711 crores in Q3, with sequential growth of 7 per cent compared to Q2. In YoY terms, revenue is optically lower by 23 per cent YoY in Q3 FY24, as product pricing has been lower during the year, in line with lower raw-material costs.
The Food & FCMG industry, which comprises items like wheat flour, rice, beans, besan, sugar, poha and soap, continued to thrive. During the quarter, segment sales increased by 25 per cent YoY, with an underlying volume increase of 17 per cent YoY.
The Food & FCMG sector had a turnover of Rs 3,653 crores in the first nine months of FY24, representing a 26 per cent increase YoY.
For the previous nine quarters, branded product revenue in the domestic market has grown by more than 40 per cent YoY.
The industry essentials volume increased by 17 per cent YoY in Q3’24 and 21 per cent YoY in 9M FY’24, driven by growth in the Castor and Oleochemical businesses. The sector generated revenue of Rs 1,844 in the third quarter and Rs 5,777 in the first nine months of FY 24.
