BackAdani Wilmar records strong volume growth across segments in Q3; to drive sales in HoReCa ahead
As per the regulatory filing, Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23.
PremiumAdani Group-backed consumer food company, Adani Wilmar has witnessed yet another healthy quarter for the period ending December 31, 2022. The FMCG player saw strong volume growth across all segments in the quarter. Going ahead, the company plans to develop its operating model in HoReCa (Hotels, Restaurants, Caterers) segment to drive sales.
As per the regulatory filing, Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23.
Adani Wilmar said, "in a volatile edible oil price environment during the year, we have been able to capture demand with our portfolio of popular and premium brands."
It added, "Packed oil sales grew strongly by high-double digit during the quarter, on the back of higher in-house as well as out-of-home consumption. Institutional demand was weak and declined during the quarter."
Meanwhile, the company's food and FMCG segment posted high-20s growth in volumes and mid-40 growth in value in percentage terms during Q3FY23. Adani said, the food business continues to grow at a very strong rate, driven by increasing penetration and amply supported by our wide-spread distribution network of edible oils across India.
According to Adani Wilmar, in the food and FMCG segment, the wheat flour category grew strongly driven by an increase in retail outlet reach, high-paced growth in alternative channels, focused branding, and strong on-ground execution. While rice sales in the premium 'Kohinoor' brand are also scaling up well, since its re-launch in the India market in August 2022, post the acquisition of its domestic brand rights. Also, besan and pulses, sugar, soya nuggets, and personal care also registered strong volume growth in the quarter.
Adani revealed that in the rice business, the company took several targeted actions across multiple customer segments and witnessed good results. which was well supported by an increase in its manufacturing capacity (both owned and leased).
Further, non-basmati rice, which is 90%+ by volume share in India, is another under-served category that Adani Wilmar expects to "become a growth driver for the company."
Adani said, "rice business is penetrating deeper in the markets, on the back of a national brand, by launching premium, region-specific products. offering authentic flavours of India."
Recently, Adani Wilmar launched non-basmati rice variants in West Bengal of regional rice products under the 'Fortune' brand, becoming the only national brand to offer these regional variants.
Furthermore, in the industry essentials segment, the company posted over 40% growth in volumes and high-teens growth in value during the quarter. The growth was driven by y higher production e- sale of de-oiled cakes (DOC), on the back of a good crop of mustard e- soya in India and competitive pricing in the export markets.
Adani Wilmar continued dominance in Castor exports, increasing its market share (of total castor exports from India) to - 32% in Q3FY23.
Moreover, Adani Wilmar said "this year, festivals and weddings were celebrated at a much larger scale, compared to the base quarter which got impacted by the lingering covid effect. The company also benefitted from a stronger out-of-home (OOH) consumption."
Meanwhile, alternative channels (E-com, Quick commerce, Modern Trade, e82B) continued to grow at a much faster rate, Adani said.
Recognising the large opportunity available in the HoReCa segment, Adani Wilmar said, "our capability to serve them with our wide-ranged product basket of kitchen essentials, we will further develop our operating model to drive sales in this customer segment."
On BSE, Adani Wilmar's share price closed at ₹571.85 apiece down by 2.32%. Its market cap is over ₹74,322 crore.
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