Adani Wilmar, the country's top producer of edible oils and packaged goods, announced a 67% increase in net profit for the January-March quarter on Wednesday. The Ahmedabad-based company, which dominates India's branded edible oil industry, saw its net profit rise to Rs 157 crore from Rs 94 crore in the same quarter last year. However, its net profit margin remained a paltry 1.2%.
Adani Wilmar's consolidated operating revenue decreased during the quarter as edible oil prices fell. Its operating income was Rs 13,238 crore, 4.6% lower than the previous year's figure of Rs 13,873 crore.
However, Adani Wilmar's net profit fell sharply in fiscal year 2024. Its profit after tax for the year was Rs 148 crore, 75% lower than the Rs 582 crore it reported in FY2023. In reality, the company's operating revenue decreased by 12% year on year. From Rs 58,185 in FY2023, its operating revenue dropped to Rs 51,262 in FY2024.
Over the last three years, the company has worked to diversify its portfolio away from its main edible oil sector as a hedge against unpredictable edible oil prices. As a result, its edible oil industry now accounts for 61% of its top line, down from more than 85% in early 2022. The share of its food and FMCG division, which includes packaged cereals, sugar, and personal care items, has increased to 17% of total revenue. Industry necessities remain the second largest category, accounting for 22% of the top line.
The company's annual income was damaged by a 16% fall in edible oil sales, from Rs 46,104 crore in FY2023 to Rs 38,788 crore in FY2024, despite its food and FMCG business expanding by 23% year on year to Rs 4,994 crore in FY2024. In the March quarter, the segment's volume offtake increased by 9%. Edible oil volumes increased by 11% in the March quarter and 9% for the year.
"We continued to see excellent volume growth in our edible oils and foods sector, which was driven by expanded retail penetration. A concentrated sales and marketing strategy, as well as a localized approach in each category, is resulting in market share gains over local competitors. The adoption of our Integrated Business Model strategy allows us to effectively compete with large and regional players," said Angshu Mallick, MD & CEO, Adani Wilmar, adding, "improvement in branded mix in edible oils during the year has also led to better profitability for the Company in the second half, with reported PAT [profit after tax] in H2'24 of Rs 358 crores and Rs 404 crores on a consolidated and standalone basis, respectively.
According to Mallick, the company's issues in Bangladesh operations have been overcome as the FX position and economic fundamentals have improved. "The operations have returned to normal this quarter. "Our brand "Rupchanda" remains the market leader in Bangladesh's Edible Oil category," he stated.
