AWL Agri Business Limited , formerly known as Adani Wilmar Limited, has reported its highest-ever quarterly revenue in Q1, driven by strong performance in the edible oil segment. However, the company's net profit saw a decline during the same period.

Record Revenue Growth

The company achieved a consolidated revenue from operations of Rs 17,058.65 crore in Q1, marking a significant 21% year-on-year increase from Rs 14,153.85 crore in the same quarter of the previous year. This robust growth was primarily attributed to the strong performance of AWL's edible oil business.

Profit Decline

Despite the impressive revenue growth, AWL Agri Business experienced a 24% year-on-year decrease in net profit. The company's consolidated net profit after taxes and after share in profit/(loss) of associates and joint ventures stood at Rs 237.95 crore for Q1, compared to Rs 313.20 crore in the same quarter last year.

Expansion and Volume Growth

AWL Agri Business reported significant expansion in its retail reach, with an 18% year-on-year increase. The company also witnessed substantial growth in its Quick Commerce segment, recording a remarkable 75% volume growth.

Financial Highlights

Market Response

The strong revenue growth and expansion efforts appear to have been well-received by the market, with the company's stock reportedly surging 6% following the announcement of these results.

Outlook

AWL Agri Business Limited continues to strengthen its position in the edible oil and food products market, with its strategic focus on retail expansion and Quick Commerce expected to drive future growth. However, investors will likely be watching closely to see how the company balances its expansion initiatives with profitability in the coming quarters.

Note: All financial figures are based on the consolidated results provided in the company's regulatory filing.

AWL Agri Business Ltd (formerly Adani Wilmar Limited) has announced its financial results for Q1, showcasing resilience in the face of market challenges while projecting robust growth for its Food & FMCG segment.

Record Q1 Revenue Amid Challenges

The company reported its highest-ever Q1 revenue of ₹17,059.00 crore, marking a 21% year-on-year increase. This growth came despite headwinds such as muted consumer demand, strategic consolidation of regional rice operations, and fluctuations in edible oil prices. The volume decline of 5% year-on-year was primarily attributed to the rice category.

Segment Performance

Edible Oils

The Edible Oils segment saw a 26% year-on-year revenue increase to ₹13,415.00 crore, despite a 4% volume decline. Excluding Palm oil, branded volume grew in low single digits, supported by strong performance in mustard oil.

Food & FMCG

The Food & FMCG segment revenue declined by 8% year-on-year to ₹1,414.00 crore, impacted by the consolidation of non-basmati rice business and lower rice exports. However, excluding the G2G rice business, this segment grew by 4% year-on-year.

Industry Essentials

The Industry Essentials segment posted a 12% year-on-year revenue growth to ₹2,230.00 crore, driven by a 6% volume increase, primarily in the de-oiled cake business.

Profitability and Future Outlook

Despite challenges, AWL Agri Business delivered healthy profits on a last twelve months (LTM) basis, with operating EBITDA of ₹2,384.00 crore and PAT of ₹1,151.00 crore for LTM June. The company's focus on improving profitability in the Food & FMCG segment led to the highest-ever quarterly PBT of ₹75.00 crore, with a 5.3% PBT margin.

Ambitious Growth Projections

Looking ahead, AWL Agri Business has set ambitious targets for its Food & FMCG segment:

• Projected revenue of ₹7,000.00 crore by FY26
• Further growth to ₹10,000.00 crore by FY27

These projections underscore the company's confidence in its diversification strategy and the potential of its food business.

Edible Oil Division Outlook

For its Edible Oil division, AWL Agri Business anticipates a quarterly EBITDA of ₹375.00-400.00 crore, indicating expected stability and profitability in this core segment.

Strategic Initiatives and Market Position

AWL Agri Business continues to strengthen its market position:

• Expanded direct retail reach by 18% year-on-year to 8.7 lakh outlets
• Increased rural town coverage to around 55,000 towns
• Strong growth in alternate channels, generating over ₹3,900.00 crore in revenue for LTM June
• Quick Commerce revenue grew by approximately 75% year-on-year in Q1

Angshu Mallick, MD & CEO of AWL Agri Business Ltd., commented on the results: "With the resiliency of our core business and large opportunity, we expect to continue to benefit from the formalization of the Indian staple food industry."

As AWL Agri Business navigates through market challenges, its strategic focus on expanding its food portfolio and strengthening distribution networks positions it well for future growth in the competitive FMCG sector.