Edible oil major Adani Wilmar reported a consolidated net loss of Rs 79 crore in the first quarter of this fiscal year. The loss was attributed to lower income amid a decline in cooking oil prices. In comparison, the company had achieved a net profit of Rs 194 crore during the same period last year. Total income also witnessed a 12 percent drop, falling to Rs 12,928 crore in the April-June period, compared to Rs 14,724 crore in the previous financial year. Adani Wilmar sells edible oils and food items under the Fortune Brand, and despite achieving a 25 percent growth in volume sales, the company’s margins were impacted by high-cost inventory in a falling edible oil price environment.
Adani Wilmar’s Managing Director and CEO, Angshu Mallick, expressed optimism, stating that the company has regained momentum in the edible oil business as prices have declined. He mentioned that the soft prices of edible oil are expected to benefit the industry. The company is also gaining market share from regional brands in under-indexed customer segments by focusing on specific geographies and oil categories.
Despite facing a 14 percent fall in revenue from the edible oils business and a 3 percent decrease in the industry essentials segment, the food and FMCG segment experienced a notable 28 percent rise in revenue. Adani Wilmar attributed the declining edible oil prices to factors such as reduced consumer demand in developed economies, easing supply in the Black Sea region, and increased global oilseed production.
Adani Wilmar, a joint venture between the Adani Group and Singapore-based Wilmar, got listed on the stock exchange last year after raising Rs 3,600 crore through an Initial Public Offer (IPO). The company continues to explore opportunities in the value-added blended oils segment under the Xpert brand to further strengthen its position in the market.
