Adani Wilmar reported a consolidated profit after tax (PAT) of ₹93.6 crore for the fourth quarter ended March 2023. The consolidated net profit slumped 60% year-on-year from ₹234.3 crore.
During Q4FY23, the company's consolidated revenue witnessed decline of 7% to ₹13,873 crores from ₹14,917.3 crore in Q4 of the previous fiscal year (Q4FY22) , due to fall in prices of edible oil.
The Adani Wilmar share price slipped over 3% following the company's Q4FY23 results.
The company in an exchange filing said that during FY23, the company's sales surpassed 5 million metric tonnes. The food segment doubled its sales in just two years, ending the year with over ₹4,000 crore. In FY23, sales of both rice and wheat flour exceeded ₹1,000 crore.
With a saliency of almost 75%, the volume of the branded category of edible oil increased by 8% YoY in FY23. During the year, the total segment volume increased by 3% YoY.
Further, the company stated that its wants to use the same strategy it used for its edible oils business to its food business as well.
According to the exchange filing, the company made huge advances this year and has been expanding its market share in all food product categories.
It ended the fiscal year 2023 with over ₹4,000 crores in revenue in the Food & FMCG area, recording an increase of 39% YoY in volumes and 55% YoY in revenue terms, while also marking out many new growth paths throughout the year.
"This journey in food products has only just begun for us. In edible oil, branded sales, with 75% saliency, we have done significantly better with 8% YoY volume growth in FY ’23. In Industry essentials segment, we made good progress with our forward integration plans in specialty chemicals. All of this has delivered a consolidated sales of ₹58,000+ crores in FY’23," said Angshu Mallick, MD & CEO, Adani Wilmar.
"We are investing in the business to support our growth. The margins during the quarter and full year got impacted by high-cost inventory in a falling edible oil price environment, inflation impact on our operational costs and an increase in interest costs due to rate hikes,” added Mallick.
According to the company's exchange filing, the consumer pack segment in both the edible oil and food divisions will prioritise distribution growth, gaining market share in under-indexed markets, and margin enhancement moving forward.
