Shares of FMCG giant Adani Wilmar Limited dipped 2 percent to Rs 370 in morning trade on December 8 after the company announced that its standalone sales experienced a 15 percent year-on-year decline.
Despite facing challenges, the company experienced overall growth, primarily attributed to the increasing presence of packaged oils and foods. The festive and wedding season played a crucial role in achieving record volumes in branded oil and foods, demonstrating growth compared to a robust base quarter.
At 9:38am, shares of the company were trading at Rs 368, down 2.2 percent from the previous close on the NSE. In the last one year, the share price has tanked 37 percent.
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Sales in rural areas remained strong, indicating continued demand for branded staples. Branded products within the oil and foods segments, accounting for approximately 80 percent of the business, continued to experience accelerated growth. The industry essentials business remained flat year-on-year in revenue, but volumes showed a notable 15 percent year-on-year increase.
However, the overall sales volume stayed flat year-on-year, primarily attributed to subdued demand from institutional customers. The oil segment faced destocking challenges in December, impacting sales volume.
Despite export restrictions on rice, the food and FMCG business at Adani Wilmar increased 28 percent year-on-year growth in revenue and an 18 percent year-on-year surge in volumes.
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