Adani Wilmar reports 6% volume growth in Q3 FY25

Adani Wilmar announced that it has achieved a healthy volume growth of 6% year-on-year (YoY) in Q3 FY25, despite significant price hikes driven by a surge in raw material costs.

During the quarter, revenue grew by 33% YoY compared to the same period last year.

In Q3, the companys edible oil volume grew by approximately 4% YoY. The demand for edible oil was impacted by a sharp rise in underlying commodity prices following the customs duty hike in mid-September. compared to Q2, edible oil prices in Q3 were about 25% higher.

However, branded sales saw a low single-digit decline, primarily due to a double-digit drop in packed palm oil sales and downtrading by consumers. Despite this, branded sales were supported by strong growth in both sunflower and mustard oils. As a result, the segments revenue increased by 39% YoY.

 

The company reported that its Food & FMCG segment achieved a year-on-year revenue growth of 22% in Q3. Excluding the G2G business (sales to government-appointed export agencies), the revenue growth was around 20% year-on-year.

The segment continued to experience double-digit growth in both general trade and e-commerce channels. It was mentioned that bundling low-penetration products with fast-selling items helped drive consumer trials and adoption. On a Last Twelve Months (LTM) basis, the segment recorded revenue of approximately Rs 6,000 crore.

The company reported that its e-commerce (including quick commerce) sales volume continued to grow rapidly, with a 41% year-on-year increase. It was noted that the company enhanced its capabilities in leveraging data and data visualization for better decision-making, which led to improved fulfillment rates and more efficient advertising spend.

Additionally, the company gained better visibility into competitors' pricing, allowing for more effective product pricing. By leveraging strong sell-through rates, the company expanded its product assortment in this channel across all markets. The channel also contributed to the rapid growth of value-added products such as Fortune Pehli Dhaar Mustard Oil, Fortune Xpert, Sharbati Atta, Poha, and Biryani Kit.

The company said that the HORECA channel experienced a volume growth rate exceeding 35% for the year-to-date (YTD) FY25, generating over Rs 600 crore in revenue on a Last Twelve Months (LTM) basis. This growth was driven by a well-balanced contribution from both edible oils and foods. Additionally, the company is developing a network of HORECA wholesalers to cater to the demand from smaller customers.

Adani Wilmar is a provider of edible oil, vanaspati, and specialty fats. The company offers soybean oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, groundnut oil, and coconut oil, as well as vegetable ghee. The company is one of the largest FMCG companies in India.

The FMCG major reported a consolidated net profit of Rs 311.02 crore in Q2 FY25 as against a net loss of Rs 130.73 crore posted in Q2 FY24. Revenue from operations jumped 17.87% YoY to Rs 14,460.45 crore in the quarter ended 30 September 2024.

The scrip shed 0.94% to Rs 325.45 on the BSE.

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