Adani Wilmar may report 4% revenue drop in Q4; Find out why Nuvama sees its edible oils & industry essential business disappointing

Adani Wilmar business update for the quarter with its end on March 31 has witnessed double-digit growth in both edible oils and foods businesses.

Nuvama Institutional Equities estimated the FMCG firm’s Q4 revenue to dip 4 % YoY.

Adani Wilmar’s edible oils business is expected to contract 4 % YoY by value.

The Food & FMCG business is likely to grow 18 % YoY, aided by its Kohinoor brand, whereas industry essentials suffered a double-digit decline.

Industry essentials posted a decline in volume/value of 21% / 15 % YoY.

The edible oil segment registered volume growth of 13% YoY,  but value contraction of 4 per cent YoY on a standalone basis.

In FY24, branded sales in edible oils grew at a faster rate of 15% compared with the overall segment growth of 10% YoY.

In Q4FY24, the Food & FMCG business posted value/volume growth of 18% / 10% YoY driven by strong domestic sales.

Revenue from branded products in the domestic market has been growing at over 30% YoY for the last ten quarters.

The revenue in Food & FMCG has nearly doubled to approximately Rs 4.7 billion within two years in FY24.

Industry essentials category volume/value contracted 21 %/ 15 % YoY.

The HORECA segment, meanwhile, crossed Rs 4 billion in revenue in FY24, within a year and a half of setting up a dedicated HORECA distribution channel.