Adani Wilmar Q1 Results - Profit Rises 10% to 194Cr, Revenue Up By 30%

The FMCG food company, Adani Wilmar, reported its financial results for Q1 FY23 on 3rd August 2022. The company reported a 10.18% YoY (year on year) growth in its profit after tax (PAT), which stood at Rs. 193.59 crore in Q1 FY23, as compared to Rs. 175.70 crore in Q1 FY22.

The increase in profits is supported by a rise in revenue from operations of the company, which stood at Rs. 14,731.62 crore in Q1 FY23, up 30.23% YoY from Rs. 11,311.97 crore in Q1 FY22. EBITDA for Adani Wilmar came in  14% YoY higher at Rs. 496 crore in the quarter under review.

The company also witnessed strong growth of 15% YoY in sales volumes to 1.19 MMT in Q1 FY23. This was on the back of a strong performance by the FMCG and Foods businesses, which continued to lead the growth and reported a 65.81% YoY revenue growth to Rs. 859.98 crore, and a 53% YoY increase in volumes. 

The Edible Oil segment saw volumes rise to 0.70 MMT, a growth of 6% YoY. As per the company’s management, the moderate growth was despite several headwinds in the edible oil industry, where inflationary pressures were a key concern. Note that the government of India had issued a notice in the last quarter to cut product price in edible oil amid rising inflation in the country. The Industry Essentials segment reported a revenue of Rs. 2,353 crore and a 22% YoY rise in volumes, which was led by castor oil exports and the oleo business. 

The earnings per share (EPS) declined marginally to Rs. 1.49 in Q1 FY23 from Rs. 1.54 in Q1 FY22.  Ahead of the results announcement, the Adani Wilmar share closed in the red at Rs. 697.95, down 1.68% from the previous day’s closing. 

Hits

• Profit after tax stood at Rs. 193.59 crore in Q1 FY23, rising 10.18% YoY.
• Revenue from operations stood at Rs. 14,731.62 crore in Q1 FY23, up 30.23% YoY.
• EBITDA up 14% YoY to Rs. 496 crore in Q1 FY23.
• Adani Wilmar saw a strong growth of 15% YoY in volume to 1.19 MMT in Q1 FY23.
  

Misses

• EPS declined marginally to Rs. 1.49 in Q1 FY23 from Rs. 1.54 in Q1 FY22.

Segment-wise revenue

• Edible Oil: Revenue up 22.74% YoY to Rs. 11,518.72 crore in Q1 FY23 from Rs. 9,385.02 crore in Q1 FY22.
• Food and FMCG: Revenue up 65.81% YoY to Rs. 859.98 crore in Q1 FY23 from Rs. 518.65 crore in Q1 FY22.
• Industry Essentials: Revenue up 67.08% YoY to Rs. 2,352.92 crore in Q1 FY23 from Rs. 1.408.30 crore in Q1 FY22.

Click here: Adani Wilmar Quarterly Results

What the management says

Commenting on the quarterly results, Mr. Angshu Mallick, Managing Director and CEO, Adani Wilmar Limited said, “Adani Wilmar has continued to demonstrate a steady growth on overall volumes, led by an exceptional growth in the foods business. This is despite multiple headwinds that we saw during the quarter with inflation and low consumer offtake being the major concern areas. Our growth has been driven by GTM strategy focused on increased penetration in the semi-urban & rural regions. This increased penetration is also enabling us to grow the foods business at a faster pace. While still majority of staples and FMCG products are sold through general trade, we have seen a double-digit growth in sales through e-commerce and modern trade. Sales of our new products such as Poha, Khichdi, Total Balance Oil, Soya Chunkies etc., have doubled on a year-on-year basis, though on a low base. There is finally some respite and signs of relief due to the softening of certain commodity prices, which may lead to better demand uptick in the coming quarter. The performance of AWL in the foregoing quarter can be summarized as – consistent and resilient.”

Other things to know

• Adani Wilmar acquired the premium basmati brand “Kohinoor” from McCormick Switzerland GMBH in May 2022. This acquisition will help the company consolidate its market share in the basmati rice segment as well as drive premiumisation.
• Adani Wilmar continued its leadership as the No.1 edible oil brand with a market share of 18.7% on a standalone basis and 19.7% along with its joint venture KTV Health Foods in Q1FY23. 
• Fortune Atta (Wheat Flour) continued to be the No. 2 brand in India with a consolidation of market share of 4.9%.
• Fortune Basmati rice continued to be the No. 3 brand in India with a consolidation of market share of 8.4%.
• The company has paid off the entire portion of its long-term borrowing. This move is expected to help in improving credit metrics and ratios, enabling the company to explore funds at competitive pricing. 

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Research Analyst: Bavadharini KS