Adani Wilmar on Friday said that the company has witnessed double-digit growth in both edible oils and foods businesses during the quarter ended on March 31, 2024. This, it added, was driven by increased retail penetration, particularly focusing on underindexed markets. In a regulatory filing, Adani Wilmar said that the company benefited from the strong demand during the festive occasion of Holi and the ongoing wedding season. “The company also achieved its highest ever volume during the quarter and it continues to gain market share,” it stated.
However, Adani Wilmar reported a decline in its export business of animal feed, which dragged down the overall volume growth to 4 per cent YoY in Q4FY24.
During FY24, Adani Wilmar said, the company saw its branded edible oils registering a 15 per cent growth, compared to the overall segment growth of 10 per cent YoY. This, it said, is the second consecutive year with faster growth in the branded portfolio. It must be noted that FY24 had lower edible oils prices, compared to the previous year, leading to lower revenue, despite the growing volumes.
In recent quarters, the FMCG major has made significant improvement to its distribution infrastructure in the southern region, with regional marketing communications and other interventions resulting in gaining market share in the Sunflower oil segment.
“The company’s focus on regional markets is yielding dividends. It remains committed to understanding regional consumer preferences and building connections with them through regional marketing campaigns, incorporating local nuances and cultural aspects,” it said.
Now, Adani Wilmar’s food and FMCG segment reported 1 million MT of sales in FY24. The company informed that the segment’s revenue nearly doubled to ~Rs 4,700 crore in just two years. “The revenue from branded products in the domestic market has been growing at 30 per cent YoY or higher for the last ten quarters. In Q4, the segment’s revenue grew strongly by 18 per cent YoY driven by strong domestic sales, despite the negative impacts of the continued export restrictions. In strong markets of edible oil, the Food segment is leveraging the outlet penetration to drive its growth,” Adani Wilmar said.
Meanwhile, the HORECA segment crossed Rs 400 crore of revenue in FY24. This segment, it said, has an estimated addressable market of Rs 65,000+ crore for edible oils & foods.