Adani Wilmar’s Impressive Growth in Q2FY25
Adani Wilmar Limited (AWL), the FMCG arm of Adani Group, announced its Q2FY25 earnings, showcasing significant growth. The company reported an 18% increase in revenue, reaching Rs 14,460 crore, with a 12% rise in volume. This growth was driven by strong performances in the edible oil and Food and FMCG segments.
Edible Oil and Food & FMCG Segments
The edible oil segment saw a 21% revenue increase, with a 17% rise in volume. The Food and FMCG segment performed even better, with a 34% revenue growth and a 33% volume increase. AWL achieved a consolidated profit of Rs 311 crore, a significant turnaround from a Rs 131 crore loss in the previous year.
Record Profits and Expansion
AWL marked its highest-ever half-yearly operating EBITDA of Rs 1,232 crores, a 349% YoY growth. The second quarter’s operating EBITDA was INR 612 crores, up 325% YoY. The company also recorded its highest-ever half-yearly Profit After Tax (PAT) of Rs 624 crores.
CEO Angshu Mallick attributed the success to stable edible oil prices and an expanding distribution network, reaching over 36,000 rural towns by September 2024, with plans to expand to over 50,000 by FY25’s end.
Product and Market Expansion
AWL’s flagship brand ‘Fortune’ and other food products like pulses and soya chunks have seen strong growth. The edible oil segment, particularly soybean, sunflower, and mustard oils, marked its third consecutive quarter of double-digit growth. The Food & FMCG segment’s revenue rose by 34% YoY, with strong growth in wheat, pulses, and other staples.
Despite a 9% decline in the industry essentials segment, AWL’s e-commerce channel revenue grew fourfold over four years. The mass brand, Kings, also saw substantial growth, aided by targeted advertising. Sales through the HORECA channel grew over 40% YoY, contributing more than Rs 500 crore in the last 12 months.
Doubts Revealed
Adani Wilmar -: Adani Wilmar is a company in India that makes and sells products like cooking oil and food items. It is a joint venture between the Adani Group and Wilmar International.
Q2FY25 -: Q2FY25 stands for the second quarter of the financial year 2024-2025. In India, a financial year starts in April and ends in March of the next year.
Revenue Growth -: Revenue growth means the company is earning more money from selling its products compared to before. In this case, Adani Wilmar earned 18% more money than the same time last year.
Edible Oil -: Edible oil is oil that we use for cooking food, like sunflower oil or mustard oil. Adani Wilmar sells different types of edible oils.
FMCG -: FMCG stands for Fast-Moving Consumer Goods. These are products that sell quickly at a low cost, like snacks, soaps, and shampoos.
Consolidated Profit -: Consolidated profit is the total profit a company makes after adding up all its earnings and subtracting expenses. Adani Wilmar made Rs 311 crore in profit this time.
EBITDA -: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a way to measure a company’s performance without considering certain financial factors.
Profit After Tax -: Profit After Tax is the money a company keeps after paying all its taxes. It’s the actual profit that the company can use or save.
CEO Angshu Mallick -: Angshu Mallick is the Chief Executive Officer (CEO) of Adani Wilmar. He is responsible for making important decisions and leading the company.
Distribution Network -: A distribution network is a system a company uses to get its products to customers. Adani Wilmar is expanding its network to reach more places, especially in rural areas.
Rural Towns -: Rural towns are small towns or villages in the countryside. Adani Wilmar wants to sell its products in over 50,000 of these towns by the end of the financial year 2025.