Adani Wilmar Limited (AWL), a joint venture between Adani Group and Wilmar Group of Singapore, delivered steady growth in both top and bottom line despite the challenging macro environment in the financial year 2021-22. Billionaire Gautam Adani-backed company also improved its market share across edible oil and food categories during the year, while the stock gave multibagger returns to its shareholders post its listing on the domestic bourses on February 8, 2022.
The FMCG major, which offers essential kitchen commodities such as edible oil, wheat flour, rice, pulses, and sugar, logged a consolidated net profit of ₹804 crore in the financial year 2021-22, up 26% as compared to ₹636 crore in the same period last year.
Consolidated revenue crossed 50,000 mark and stood at ₹54,214 crore in FY22, compared to ₹37,090 crore in 2021, registering a growth of 46%. Food business clocked revenue of ₹2,621 crore in FY22, compared to ₹1,906 crore in 2021, registering a yearly growth of 38%.
The EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) jumped 34% YoY to ₹1,909 crore, from ₹1,430 crore in FY21.
On the operational front, total sales volume grew 8% YoY to 4.80 million metric tonnes (MMT) in FY22, while food and FMCG vertical’s volume rose 34% to 0.64 MMT on a yearly basis. The company, which sells cooking oils and other food products under Fortune brand, added 28 new Fortune mart stores, taking the total to 33 stores across India as of March 31, 2022.
For January-March quarter of 2022, the consolidated net profit dropped 25.6% YoY to ₹234.3 crore as higher inflation, in the backdrop of Russia-Ukraine crisis, created demand and supply side challenges. The sudden spike in sunflower oil prices due to Russia’s invasion of Ukraine, the major sunflower oil producers, pushed cost prices higher and eroded profit margins.
The consolidated revenue from operations rose 40.2% to ₹14,960.4 crore as compared to quarter ended March 31, 2021. In terms of volume, total sales stood at 1.29 MMT in Q4 FY22, up 16% on a quarter-on-quarter basis.
During the quarter under review, consolidated total expenses climbed 40.3% to ₹14,726.7 crore, led by the cost of raw materials consumed, which soared 40%.
Commenting on quarterly earnings, Angshu Mallick, Managing Director and CEO, Adani Wilmar says, “We have delivered a steady growth in spite of the challenging macro environment. The food & FMCG segment registering double digit growth. We have continued to improve our market share across edible oil & food categories. We are also on track to implement our go-to-market strategy focused to capture the rural growth story.”
“We will continue to invest in our brand, distribution, sourcing and manufacturing capabilities. Going forward, we will focus more on inorganic growth and strategic investments in the foods space,” adds Mallick.
The edible oil producer has also delivered 180% returns to its investors since its listing, with stock price rising from ₹268.75 on February 8, 2022, to ₹753.65 on May 2, 2022. The stock closed 3.4% lower at ₹753.65 apiece on BSE today as investors weighed the drop in March quarter profit.