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Business News/ Companies / News/  Adani Wilmar sees 15% decline in sales on fall in edible oil prices in Q1
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Adani Wilmar sees 15% decline in sales on fall in edible oil prices in Q1

Adani Wilmar saw double-digit growth in terms of volume at 25 per cent year-on-year (YoY) on robust consumer demand.

Adani Wilmar is among the leading FMCG food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. (Adani Wilmar website)Premium
Adani Wilmar is among the leading FMCG food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. (Adani Wilmar website)

Adani Wilmar said on Wednesday that first-quarter sales has declined by 15 per cent on sharp fall in edible oil prices eclipsed strong demand for its food products.

Edible oil prices have been on a decline since last year, hit by lower consumer demand in developed economies, easing of supply in the Black Sea region and strong production of oilseeds.

Adani Wilmar saw double-digit growth in terms of volume at 25 per cent year-on-year (YoY) on robust consumer demand. The sale of branded products in both edible oils and foods has been stronger compared to overall sales of respective segments. 

“While the volume growth was strong, the sales value decline on YoY basis is reflective of the sharp decline in edible oil prices," said Adani Wilmar in its filing.

Sales in its food and fast moving consumer goods segment grew 30 per cent on strong demand, to cross 1,000 crore of revenue for the quarter on a standalone basis. This was the eighth consecutive quarter in which the sector saw over 20 per cent volume growth and over 30 per cent revenue growth, on YoY basis, for the food & FMCG segment.

The edible oil business grew by 25 per cent YoY in volume terms during the quarter on the back of continued strong consumer demand as well as the weak base of Q1FY23.

“The base quarter demand was disrupted by high edible oil prices with the onset of the Russia-Ukraine conflict. On a sequential basis also, the volume growth in Q1’24 over Q4’23 has been quite strong," it added.

The foods business continued to grow, with segment revenues rising 30% YoY to 1,000 crores for the quarter on a standalone basis on the back of growth in sales of branded products in the domestic market.

The majority of our branded food products recorded a volume increase of more than 25% for the quarter, with many of the new products that were launched in the market in the last 1 to 2 years, witnessing much faster growth. 

Exports of non-basmati Rice decreased in terms of volume due to the continued restrictions on Rice exports and levy of 20% export duty.

For the industry essentials business, volumes rose 20% YoY in the first quarter. However, revenues declined by 15% YoY due to steep corrections in prices of oleo and castor products, which together contribute around 70% of this segment’s revenue.

On Tuesday, the shares of Adani Wilmar ended 0.20 per cent down at 406.95 on BSE.

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Published: 05 Jul 2023, 08:13 PM IST
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