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Adani Wilmar Q3 FY25, best-ever TTM performance with operating EBITDA at Rs 2,390 crore & PAT at Rs 1,192 crore
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Wednesday, 29 January, 2025, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Best-ever trailing-twelve-months (TTM) performance with operating EBITDA at Rs 2,390 crore and PAT at Rs 1,192 crore on TTM basis. Highest-ever revenue of Rs 16,859 crore in Q3, up by 31% YoY, with underlying volume growth of 5% YoY. Highest-ever quarterly operating EBITDA of Rs 792 crore in Q3 ’25, up by 57% YoY. Highest-ever quarterly PAT of Rs 411 crore in Q3’25, up by 105% YoY. Food & FMCG recorded revenue growth of 22% YoY in Q3, with an underlying volume growth of 23% YoY. TTM revenue at Rs 6,150 crore.
The company achieved a healthy volume growth of 5% YoY in Q3 FY’25, despite significant price-hikes driven by a surge in raw material costs.
The company recorded revenue of Rs 16,859 crore in Q3’25, which is a growth of 31% YoY with an underlying volume growth of 5% YoY. Edible oils and Food & FMCG segments delivered strong double-digit revenue growth of 38% YoY and 22% YoY respectively. The company has been delivering strong profits over the last five quarters. For Q3’25, operating EBITDA was at Rs 792 crore and a PAT of Rs 411 crore. The company has been expanding its distribution network to access more towns, reaching over 43 thousand rural towns directly by the end of December 2024. This marks a substantial progress from just over 5,000 towns in March 2022. The goal is to reach over 50,000 rural towns by the end of FY’25 and drive the penetration of outlets as well as volume offtake in these new outlets.
The integrated distribution model is enabling the company to leverage the strength of oil distribution network to boost the reach of food products, particularly in urban markets. This has been accomplished through a range of initiatives, such as loyalty programs for retailers, bundling offers for both retailers and consumers, targeting high-potential outlets, and refining salesman incentives.
In Q3, revenue from alternate channels increased at a strong double-digit rate YoY, with revenue over the past 12 months at around Rs 3,300 crore. The e-commerce (including quick commerce) sales volume continued to grow rapidly at 41% YoY. The company enhanced its capabilities in leveraging data and data visualiation for better decision making, resulting in improved fulfillment rates and more efficient ad spends for a heathy growing nation. Fortune provided better visibility of competitors' pricing, allowing to price the products more effectively. By leveraging strong sell-through rates, the company proactively expanded the product assortment in this channel across all markets. This channel is also facilitating the rapid growth of value-added products such as Fortune Pehli Dhaar Mustard Oil, Fortune Xpert, Sharbati Atta, Poha and Biryani Kit.
The HoReCa channel grew at a volume growth rate exceeding 35% for YTD FY’25, generating over Rs 600 crore in revenue on a Last Twelve Months (LTM) basis, with a well-balanced contribution from both edible oils and foods. Furthermore, the company is developing a network of HORECA wholesalers to meet the demand from smaller customers.
The company has launched a year-long celebration for the 25th anniversary of the 'Fortune' brand, with digital storytelling and consumer campaigns, aimed at strengthening consumer trust in the brand. The company have done one-of-its-kind activation at Ayodhya, where MyFM radio collected over 6-lakh diyas (lamp) from people, which were lit during Diwali festival using Fortune Kachi Ghani Mustard Oil, fostering greater engagement with the brand.
The company was awarded the 'SKOCH Award' for its digital transformation in the supply chain, specifically for its 'Integrated Logistics Management System'.
ESG Update
Fortune SuPoshan, AWL's flagship CSR initiative, has been honored with the prestigious Indian CSR Awards 2024 in the category of 'Best Rural Children Healthcare Initiative of the Year – 2024.' AWL’s Mundra and Hazira Plants received a Gold Medal and Silver Medal, respectively, at the 10th edition of the India Green Manufacturing Challenge (IGMC), organised by the International Research Institute for Manufacturing (IRIM). Additionally,Vidi sha factory earned the Safety Award at the Global Safety Summit 2024, demonstrating AWL's dedication to maintaining high safety standards across its manufacturing facilities.
Edible Oils
In Q3, the edible oil volume grew by 4% YoY and recorded revenue of Rs 13,387, up by 38% YoY. Branded sales declined in low single digits, primarily due to double-digit decline in packed palm oil sales and downtrading by consumers. Branded sales increased across all other edible oils. To strengthen consumer connections, it introduced special packs of soybean oil in Bihar to celebrate Chhath Puja, an important festival in the region. AWL won two awards from Mad Over Marketing – winner of ‘Best Regional Campaign’ for its ‘Ilish Campaign’ in West Bengal and Runners up for ‘Best OOH for an Occasion.’
Food & FMCG
The Food & FMCG segment recorded revenue of Rs 1,558 crore in Q3, up by 22% YoY. The segment continued to experience double-digit growth in both General Trade and E-commerce channels. Bundling the low-penetration products with fast-selling items continued to drive consumer trials and adoption. On LTM basis, the segment recorded revenue of Rs 6,150 crore.
In wheat flour, outpaced industry growth and gained market share during the current financial year. The introduction of small pack sizes (up to 2-KG) continued to play a key role in driving strong growth in the South and West regions.
In rice, the Company is working on its supply chain to improve product availability in the market. The Kohinoor brand also launched a video series on social media, featuring renowned food critic and historian, Dr Pushpesh Pant, narrating the stories behind various recipes made with Basmati rice.
Industry Essentials
In Q3, the Industry Essentials segment’s revenue increased by 4% YoY to Rs 1,915 crore. The lower sale in castor meals and oil meal led to a decline in the segment’s volume during the quarter.
Angshu Mallick, MD & CEO, Adani Wilmar Limited, said, “The company’s revenue grew by 31% YoY to Rs 16,859 crore. We have delivered another strong quarter, with double-digit growth in both edible oils and Food & FMCG segments. The edible oils revenue grew by 38% YoY and the Food & FMCG revenue grew by 22% YoY. The company has been delivering strong profits over the last five quarters. We have delivered record profits during the quarter, with EBITDA at Rs 792 crore and PAT at Rs 411 crore. This has led to best-ever trailing-twelve-months (TTM) performance with operating EBITDA at Rs 2,390 crore and PAT at Rs 1,192 crore on TTM basis. Our overall Food & FMCG business has crossed Rs 6,150 crore on TTM basis and we stay committed to building a very large packaged food business in India. The company has been becoming stronger and more diversified. Most of our strategies have been yielding positive results. Our edible oils have gained market share in under indexed markets and under-indexed categories like Sunflower oil and Mustard Oil. In wheat flour, we outpaced industry growth during the year. Additionally, the company has significantly expanded its direct rural coverage crossing 43,000 rural towns as of December ’24, up from 5,000 towns in March 2022, positioning us well for future growth. E-commerce revenue has grown by 41% YoY on TTM basis. The company has made strong inroads in the South, with a 15% YoY volume growth in branded products during Q3. Additionally, the 'Fortune' brand is celebrating its 25th anniversary with a year-long series of consumer campaigns to mark this significant milestone.”
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