Just days after Adani Enterprises (AEL) announced its plans to exit from Adani Wilmar, the FMCG major on Saturday released its standalone performance report for the quarter ended December 31, 2024, wherein it posted a revenue growth of 33 per cent on-year. The FMCG firm recorded a healthy 6 per cent YoY growth in volumes during Q3 despite significant price hikes driven by surge in raw material costs.
In a regulatory filing, Adani Wilmar said that although the edible oil segment saw a downtrading among consumers, the company maintained its market share by its strategy of having a diverse portfolio of brands at various price points. Further, in the foods category, key packed products such as wheat flours, rice, nuggets, pulses, poha, and sugar continued to experience robust double-digit growth, the business update stated.
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Q3 performance for edible oil segment
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In Q3, the demand for edible oil was impacted by a sharp rise in underlying commodity prices following the customs duty hike in mid-September. Compared to Q2, edible oil prices in Q3 were about 25 per cent higher, which led to consumers downgrading their purchases and a reduction in stock at the trade level. Moreover, palm oil prices, which are typically lower than other edible oils, surpassed the prices of other oils, causing consumers to switch to other affordable edible oils while sticking with value-for-money brands.
In Q3, Adani Wilmar’s edible oil volume grew by approximately 4 per cent YoY. However, branded sales declined in low single digits, primarily due to double-digit decline in packed palm oil sales and downtrading by consumers. Branded sales, it said, were supported by strong growth in both Sunflower and Mustard Oils. The segment’s revenue increased by 39 per cent YoY.
Q3 performance for food & FMCG segment
The Food & FMCG segment recorded a YoY revenue growth of 22 per cent in Q3.
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