Adani Wilmar Reports Strong Volume Growth in Q2 Despite Value Decline

6 Oct 2023 , 01:54 PM

Adani Wilmar shares rose by 1% in early trade on October 6, driven by Q2 business update. Strong double-digit volume growth reported in Q2, particularly in rural sales. However, sales value declined YoY despite the volume growth.

Edible oil segment saw 5% volume growth YoY but a 19% value growth decline in Q2 FY24. Food & FMCG business exhibited 18% volume growth and 25% value growth YoY, despite export revenue decline due to rice export restrictions.

Edible oils and FMCG contribute 74% to Q2 revenue, with the food and FMCG segment generating around Rs 4,300 crore in revenue on an LTM basis. Industry essentials’ value growth was 1% despite a 25% rise in volume growth YoY.

Combined, industry essentials and food & FMCG contribute 26% to Adani Wilmar’s business mix in terms of value. Adani Wilmar experienced substantial growth in oil and foods due to modern trade and e-commerce.

Profitability for the quarter remained under stress due to changing spot and future prices of edible oils. Nuvama Institutional Equities expects a YoY dip of 11.4% in consolidated revenue, 1.7% in EBITDA, and 26.6% in PAT.

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