Adani Wilmar said on Wednesday its first-quarter sales slumped 15% as a sharp fall in edible oil prices eclipsed strong consumer demand for its products.
Edible oil prices have fallen more than 50% in less than a year, hit by lower consumer demand in developed economies, easing of supply in the Black Sea region and strong production of oilseeds, the joint venture between Adani Group and Singapore’s Wilmar Group said.
However, lower edible oil prices meant demand for the product surged, resulting in a 25% jump in volumes for the company’s largest segment, the maker of Fortune cooking oil said.
Sales in its food and fast-moving consumer goods segment, which includes products from soaps to rice, grew 30% on strong demand.
But overall sales were dragged by a 15% decline each at its edible oil and industry essential segments, which contribute around 92% of total sales value.
Earlier on Wednesday, rival Marico said revenue for the June quarter fell in the low-single digits percentage range, dragged by sluggish sales in rural markets and a move to cut prices of its Saffola edible oil.
Adani Wilmar shares are down around 34% so far this year, as the company led by billionaire Gautam Adani struggles to shake the effects of a scathing short-seller report earlier this year.