Adani Wilmar Ltd - Quarterly Update on Business - Q1 FY25

This provides a preliminary update on the standalone performance highlighting the key trends and operational developments during the quarter that ended on June 30, 2024. This will be later followed by a detailed disclosure of financial results and earnings presentation once the board approves the financial results for the quarter.

The Company achieved robust volume growth of 13% YoY, propelled by market-specific strategies in each category, aimed at gaining market share, especially in under-indexed markets. With a robust product portfolio, the Company is actively pursuing substantial opportunities by executing strong sales and distribution strategies in General Trade. Moreover, our alternate channels (e-com, Quick Commerce, MT) maintained their momentum with a 19% YoY volume growth in Q1. The volume of our branded exports increased by 36% YoY in Q1.

Edible Oils

Despite challenges in the industry during the quarter, including decreased out-of-home consumption and seasonal dips in summer demand, our business thrived due to robust execution in sales and distribution, bolstered by our ongoing efforts to improve retail penetration.

As the leading player in the mustard oil segment, we have consistently expanded our market presence, driving robust growth amidst a fragmented market landscape. Expanding on its brand strength, the business introduced a specialized Mustard Oil packaging tailored for pickle enthusiasts, boasting an enhanced level of pungency. Sunflower oil continued to gain market share in South India on the back of our regional interventions.

The Company has launched 'Fortune Pehli Dhaar First Pressed Mustard Oil' to expand our range of premium products. The oil is cold-pressed using the traditional wooden kolhu technique, ensuring exceptional taste and an unmatched aroma. The company is also engaging with health-conscious consumers through digital platforms for its Fortune Xpert oil.

Food & FMCG

Food products demonstrated strong growth by harnessing the well-established and widely penetrated distribution network of edible oils, along with increasing trials through strategic bundling and trade schemes. The quarter's growth was additionally supported by sales of non-basmati rice to Government appointed agencies for exports. Even after normalizing this aspect, the Food & FMCG business volume grew by 23% YoY.

In the wheat business, while the packaged atta industry has experienced a significant slowdown in growth over the past three quarters, AWL has maintained a robust growth trajectory. This has been driven by an expanded presence in retail outlets and households and increased repeat purchases. Additionally, our Wheat business has made notable gains in the South market. Overall, our market share in wheat flour has continued to expand.

In the Rice business, the Company is implementing several initiatives to drive robust growth. By utilizing its distribution network, the business has expanded its presence in numerous outlets. The quarter saw good growth, bolstered by a successful promotional event in collaboration with a major retailer.

Revenue from branded products in the domestic market has consistently grown at a rate exceeding 30% YoY for the past eleven quarters. The company anticipates that strong growth in food volume will persist.

Shares of Adani Wilmar Limited was last trading in BSE at Rs. 333.75 as compared to the previous close of Rs. 335.65. The total number of shares traded during the day was 193862 in over 6330 trades.

The stock hit an intraday high of Rs. 337.45 and intraday low of 333.35. The net turnover during the day was Rs. 64876923.00.

Source : Equity Bulls

Keywords

AdaniWilmar INE699H01024 AWL EdibleOil BusinessUpdate Q1FY25