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.
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
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Research Analyst: Bavadharini KS