Adani Wilmar delivered a strong quarter with volume growth of 18 per cent YoY in H1’24 and 11 per cent YoY in Q2’24. The robust growth was supported by gradual improvement in consumer demand, lower edible oil prices, execution in GTM and efficient supply chain. The branded sales in both edible oil and foods grew faster than the overall sales. The sales revenue declined by 13 per cent YoY in both H1’24 and Q2’24, due to a steep correction in the prices of edible oils.
The quarter continued to remain challenging for the edible oil segment. While the quarter was less volatile as compared to previous quarters, the segment continued to witness divergent trends in the spot (physical prices) and future prices. The quarter also witnessed record imports by the industry, which anticipated an early festive demand. The prices of edible oils fell further by 3 to 6 per cent during the quarter and continued to remain range-bound in the sub-USD 1000 per ton levels.
Restrictions on exports of basmati and non-basmati rice continued during the quarter. Wheat prices surged upwards on the back of a strong demand, vis-à-vis the tight supply chain. However, the government stepped in to release wheat under the Open Market Sale Scheme (OMSS) to control the prices.
The Edible Oil segment grew by 4 per cent YoY on volumes in Q2’24, dragged by lower volumes in B2B sales. However, the branded sales grew by 12 per cent YoY on volumes in Q2’24. The segment registered a revenue of Rs 9038 Crores, a decline of 19 per cent YoY in Q2’24, due to the fall in prices of edible oils. In H1’24, the Edible Oil segment registered a growth of 15 per cent YoY on volumes. However, in H1’24, the branded portfolio of edible oils grew much faster at 22 per cent YoY on volumes.
The growth in the edible oils segment was primarily led by sunflower oil and mustard oil, which have been growing faster than the industry due to strong brand equity. During the quarter, the ROCP Market share of AWL in edible oils reached 19.6 per cent in September 2023 on a MAT basis. This led to a growth of 10bps vis-à-vis the same period last year.
