Adani Wilmar Reports 15% Decline in Q1 Sales Amidst Falling Edible Oil Prices

6 Jul 2023 , 01:09 PM

Adani Wilmar, a leading edible oil and food products company, announced a 15% decline in sales for the first quarter. This drop was primarily attributed to the sharp fall in edible oil prices, despite strong consumer demand for their food products.

The decline in edible oil prices can be attributed to lower consumer demand in developed economies, increased supply in the Black Sea region, and a surge in oilseed production.

Despite the decline in sales value, Adani Wilmar witnessed robust volume growth of 25% year-on-year (YoY) due to strong consumer demand. The sales of their branded products in both edible oils and foods outperformed the overall sales of their respective segments.

As per sources Adani Wilmar stated, ‘While the volume growth was strong, the sales value decline on YoY basis is reflective of the sharp decline in edible oil prices.’

The food and fast-moving consumer goods segment of Adani Wilmar experienced a significant growth of 30% in sales, crossing Rs 1,000 crore in revenue for the quarter on a standalone basis. This marked the eighth consecutive quarter of over 20% volume growth and over 30% revenue growth for the food and FMCG segment.

The volume of the edible oil business grew by 25% YoY during the quarter, driven by consistent consumer demand and a weak base in Q1FY23. The high prices of edible oil during the Russia-Ukraine conflict disrupted demand in the previous year’s base quarter.

Adani Wilmar noted that the sequential volume growth in Q1’24 over Q4’23 was also strong. The foods business of Adani Wilmar continued its growth trajectory, with segment revenues increasing by 30% YoY to ₹1,000 crore on a standalone basis. This growth was primarily driven by the sales of branded products in the domestic market.

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