Adani Wilmar Q1 Results Review - Improving Trajectory In Volumes, Profitability: ICICI Securities

ICICI Securities Report

Adani Wilmar Ltd.’s reported a strong Q1 FY25 with revenue growth of 10% YoY led by double-digit volume growth (12% YoY) driven by edible oils (+12% YoY) and continued strong performance in foods segment (+19% YoY revenue growth on comparable basis; domestic branded business grew ~30% YoY over last 11 quarters).

This performance is driven by-

1. stability in edible oil prices,

2. distribution expansion (18% YoY and 40% YoY growth in direct reach and rural town coverage).

Profitability also improved with stable input prices as Adani Wilmar reported highest quarterly Ebitda margins of 4.4% (above our estimates; +335 bps YoY). Focus on driving numeric distribution expansion is expected to drive growth trajectory going forward as well.

Importantly, continued meaningful outperformance of domestic foods segment (management plans to increase volume salience of foods from ~17% currently to ~30%) is key to de-risk volatility in edible oil business. Maintain Hold.

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