The Adani Wilmer Drops After Second-quarter Business Update In 2022

Adani Wilmar acquires Basmati rice brand Kohinoor

The Adani Wilmer Drops After Second-quarter Business Update In 2022

October 14, 2022: The company said it is committed to investing in large-scale undeveloped food and FMCG businesses and aims to become one.

Adani Wilmar dropped his 3.08% to Rs.686.60. That’s after the cooking oil giant said he expected low-single-digit growth in total revenue for the July-September quarter year-over-year.

Adani Wilmar sells cooking oils and other food products under the Fortune brand. The company shared a preliminary update on its stand-alone performance for the second quarter of 2023.

The company said several macroeconomic downturns were driven by domestic and global signals, the ongoing geopolitical stalemate, rising interest rates, a slowing rural demand recovery and slow monsoon easing in much of India.

It said challenges continued to weigh on its business over the last quarter. But falling commodity prices and a rise in his 2022 food grain production forecast, released as part of the Fourth Preliminary Forecast, were a bright sign of a recovery.

“In the cooking oil situation, the second quarter essentially absorbed the market shock of high inflation followed by a sharp drop in prices,” the company said.

Based on these factors, the company said it expects overall revenue to grow in the low single digits (year-over-year) for the quarter and revenue and volume to grow in the low double digits in the first half. rice field.

The Food and FMCG basket followed a similar growth trajectory to the previous quarter, registering over 40% growth and leveraging the pan-India distribution of the Edible Oils business.

His Industry Essentials business also grew nearly 20% in the quarter and first half. Our businesses followed a growth trajectory centered on the food business, the daily consumer goods business, and the oleochemical business.

The Edible Oils business experienced higher volume growth in the bulk category than in the premium category as a result of continued down-trading during the fourth quarter.

Edible oil prices, including palm oil, soybean oil and sunflower oil, fell sharply during the quarter and are now more or less approaching pre-Covid-19 pandemic levels.

The company said it is passing on the benefits of lower prices to its customers to protect its market share.

This, along with currency depreciation, will impact margins in the quarter, which are purely cyclical in nature given the events the industry experienced this quarter.

The company remains optimistic on brand value and hopes demand trends will continue to improve as retail inflation eases and the monsoon booms.

In the second half of 2023, consumption is likely to increase due to celebrations and lower prices across all food categories.

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