Adani Wilmar Faces 15% YoY Dip in Sales, Yet Records Growth in Branded Oils and Foods

8 Jan 2024 , 11:56 AM

Adani Wilmar Limited’s shares declined 2% to Rs 370 on December 8 following a 15% year-on-year dip in standalone sales.

The company, despite challenges, achieved overall growth driven by the expanding presence of packaged oils and foods. Festive and wedding seasons contributed to record volumes in branded oil and foods, showing growth compared to a strong base quarter.

At the time of writing the stock was trading at Rs 371.60 which is a 1.97% dip than the previous close. Over the past year, the share price has dropped by 37%.

Sales in rural areas remained robust, indicating sustained demand for branded staples, with branded oil and foods accounting for about 80% of the business and experiencing accelerated growth.

Industry essentials business showed flat year-on-year revenue, but volumes exhibited a significant 15% year-on-year increase.

Overall sales volume remained flat year-on-year, primarily due to subdued demand from institutional customers. The oil segment faced destocking challenges in December, impacting sales volume.

Despite export restrictions on rice, Adani Wilmar’s food and FMCG business saw a 28% year-on-year growth in revenue and an 18% year-on-year surge in volumes.

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