AWL Agri Business, formerly known as Adani Wilmar, released its June quarter performance today, July 15, reporting a 24% year-on-year (YoY) decline in consolidated net profit to ₹238 crore, as the company faced a challenging quarter due to a combination of headwinds, muted consumer demand, strategic consolidation of regional rice operations, the absence of a one-off G2G rice business present in the base year, and fluctuations in edible oil prices.

These factors led to a 5% YoY decline in overall volumes in Q1, with the rice category being the key drag, while revenue rose 21% YoY to ₹17,059 crore, driven by higher realizations in edible oils. 

Segment-wise, revenue from edible oils rose 26% YoY to ₹13,415 crore. Raw material costs were 30% higher YoY in Q1 compared to the base quarter, which led to muted consumer demand. 

Additionally, the company stated that market volatility in crude edible oil prices, driven by reduced customs duties, global geopolitical events, and a higher biodiesel mandate in the U.S., resulted in trade destocking during the quarter.

The Industry Essentials volume grew by around 6% YoY driven by the growth in de-oiled cake business. Oleochemicals and Castor Oil & derivative volumes were largely flat in Q1, primarily due to near full utilization of capacity. The segment has crossed 2,000 crores quarterly revenue milestone in Q1, recording ₹2,230 crore, up by 12% YoY.

Meanwhile, revenue from the Food & FMCG segment declined 8%, impacted by the consolidation of the non-basmati rice business, the absence of the one-off G2G rice order in the base year, and weaker rice exports, the company said in its earnings filing.

“On the distribution front, our direct retail reach grew 18% YoY to 8.7 lakh outlets, with rural town coverage of around 55,000 — a tenfold rise from FY’22. Having achieved our rural reach target of 50,000 towns, we are now primarily focused on driving higher throughput from the newly added towns and outlets,” the company said.

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