Adani Wilmar volume growth in double-digit in in July-September quarter

Adani Wilmar delivered double-digit volume growth on the back of opportunity in the packaged staple foods and strong execution in the July-September quarter, the company said in its quarterly update ahead of its results.

Rural sales grew at a faster rate due to a higher focus on increasing its rural distribution network.

“While the volume growth was strong, the sales value decline on a year-on-year basis is reflective of the sharp fall in global edible oil prices,” it said in its update.

Its edible oil segment volumes grew by around 5 per cent year-on-year in the July-September quarter, with the branded business volumes growing at a faster rate of 12 per cent compared to last year.

In the food and FMCG segment, the company’s domestic market revenue from branded products has been growing at over 40 per cent year-on-year rate for the last eight quarters and contributed around 80 per cent to the overall segment revenue in the quarter, it said in its update.

“The profitability for the quarter remained under stress due to divergent trends in the spot and future prices of edible oils. Further, the local edible oil prices were also under pressure due to excessive imports by the industry in recent months,” it said.

Adani Wilmar’s direct distribution has reached 6.5 lakh retail outlets during the quarter.