Adani Wilmar net profit plunges 75%, revenue dips 12% in FY2024

The country’s leading edible oil and packaged foods maker Adani Wilmar on Wednesday reported a 67% jump in its net profit for the January-March quarter. The Ahmedabad-based company, which leads India’s branded edible oil market, saw its net profit surge to Rs 157 crore - up from Rs 94 crore in the corresponding quarter previous year. Its net profit margin, however, remained at meagre 1.2 per cent.

During the quarter, Adani Wilmar’s consolidated revenue from operations declined due to the softening edible oil prices. At Rs 13,238 crore, its operating revenue was 4.6% lower than Rs 13,873 crore, reported in the year-ago period.

During the year FY2024, Adani Wilmar’s net profit, however, recorded a steep decline. At Rs 148 crore, its profit after tax for the year was 75% lower than the Rs 582 crore it had posted in FY2023. In fact, the company’s operating revenue declined too - by 12% year-on-year. From Rs 58,185 in FY2023, its operating revenue slipped to Rs 51,262 in FY2024.

Over the past three years, the company has attempted to diversify its portfolio away from its core edible oil business, hedging against the volatile edible oil prices. As a result, its edible oil business now contributes 61% towards its top line - down from over 85% in early 2022. The share of its food & FMCG business, comprised of packaged cereals, sugar, and personal care items, has surged to 17% of its revenue. Industry essentials continue to remain the second largest category - contributing 22% towards its top line.

A decline of 16% in its edible oil sales, from Rs 46,104 crore in FY2023 to Rs 38,788 crore in FY2024, impacted the company’s yearly revenue, despite its food & FMCG business growing by 23% year-on-year to Rs 4,994 crore in FY2024. During the March quarter, the segment’s volume offtake grew by 9%. Edible oil volumes surged 11% in the March quarter and 9% during the year.

“We continued to witness strong volume growth in our edible oils & foods business driven by increased retail penetration. A focused approach in sales & marketing and a regional approach in each category is leading to gaining market share from the local players. 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, challenges faced by the company in its Bangladesh operations have been overcome with the improved forex situation and fundamentals of the economy. “The operations have come back to normalcy this quarter. Our brand “Rupchanda” remains the market leader in Bangladesh in the Edible Oil category,” he said.