Adani Wilmar Q2 FY25 Earnings Results: Net Profit Rises to ₹311 Crore on Higher Revenue

Adani Wilmar Limited (AWL), the fast-moving consumer goods (FMCG) branch of the Adani Group, released its Q2 FY25 earnings on October 24, 2024. The company saw an 18% increase in revenue, reaching ₹14,460 crore compared to the same quarter last year, with a volume growth of 12%. This growth was fueled by strong performances in both the edible oil and Food and FMCG sectors. 

The edible oil segment’s revenue grew by 21% year-on-year, with a 17% volume increase. The Food and FMCG segment performed even better, showing revenue growth of 34% and volume growth of 33%.

AWL reported a profit of ₹311 crore in Q2FY25, recovering from a loss of ₹131 crore during the same quarter last year. The company achieved its highest-ever half-yearly operating EBITDA of ₹1,232 crore for the first half of FY25, marking an impressive 349% increase compared to the previous year. For the second quarter alone, the operating EBITDA was ₹612 crore, up 325% year-on-year.

Additionally, Adani Wilmar recorded its highest half-yearly Profit After Tax (PAT) at ₹624 crore. The company credited its strong performance to stable edible oil prices and an expanding distribution network. By the end of September 2024, it had reached over 36,000 rural towns, a significant increase from just 5,000 towns in March 2022, and plans to expand to over 50,000 rural towns by the end of FY25.

In the edible oil segment, revenue increased by 21% year-on-year to ₹10,977 crore, driven by high demand for soybean, sunflower, and mustard oils. This marks the third consecutive quarter of double-digit volume growth in this segment.

Adani Wilmar is also working to grow its presence in less-served markets, particularly for sunflower and mustard oils.

The revenue in the Food and FMCG segment rose by 34% year-on-year to ₹1,718 crore, with strong growth reported in wheat, pulses, besan, soya nuggets, sugar, and other staple foods, all showing solid double-digit growth in branded sales.

On the other hand, the industry essentials segment saw a 9% decline in revenue to ₹1,766 crore, mainly due to lower sales in oleo chemicals, castor meals, and oil meal businesses.

The company has experienced significant growth in its e-commerce channel, with revenue increasing 4 times over the past 4 years. The mass brand Kings has also performed well in this space thanks to targeted advertising and promotions. Additionally, sales of branded packaged oils and foods through the HORECA (Hotel, Restaurant, and Catering) channel grew by over 40% year-on-year, contributing more than ₹500 crore in the last 12 months.

On October 25, 2024, Adani Wilmar Ltd’s share price opened at ₹335.80, touching the day’s low at ₹321.95, as of 12:20 PM on the NSE.

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