Patanjali on Wednesday released its quarterly and half yearly performance through an exchange filing. With Edible oil business being single-digit year-on-year growth and double-digit sequential growth in the food and FMCG sector, the company continues to grow.
The Edible Oil segment faced an ongoing pricing pressure during Q2 mainly due to excessive imports that led to elevated inventory levels, impacting both revenue and margins. The price trend observed in Q2 remained consistent with that of Q1, displaying divergent price fluctuations between the Physical and Futures markets.
In this backdrop, the company registered an uptick in Edible Oil sales volume with a single-digit YoY growth in Q2FY24 and double-digit YoY growth during H1FY24. Despite challenges, the branded sales continue to thrive, accounting for over 75% of the total sales value in Edible Oils.
In the Oil Palm Plantation Business, the company made significant strides during Q2, including the establishment of eight nurseries across five states and the development of over 4,500 hectares of palm plantations pan India. The company conducted a Mega Oil Palm Plantation Drive in seven states, distributing approximately 350,000 seedlings to farmers and covering an extensive area exceeding 2,400 hectares.
Food & FMCG
In the Food & FMCG Segment, driven by sustained efforts, the company achieved double-digit sequential growth in Q2'FY24 and a year-on-year growth of more than 30% in H1'FY24. This segment's contribution to our Q2'FY24 revenue further moved by 100 bps from Q1'FY24.
The Biscuits division continues to maintain strong momentum, showing high teens YoY growth in Q2'FY24 and high twenties YoY growth in H1'FY24 with its marquee biscuit brands, Doodh Biscuits and Nariyal Biscuits, showing further traction.
Furthermore, the company achieved the highest-ever quarterly sales of Textures Soya Products (TSP) under the Nutrela Brand, demonstrating robust growth momentum.
The Nutraceuticals business is steadily gaining favor with consumers. The team maintains an optimistic outlook, especially regarding the new distribution channels, namely DTC (Direct-to Consumer) and ECommerce, as well as the expanded product range.
India experienced the challenge of scattered rains and erratic monsoon. However, towards the end of September, the monsoon resurgence raised optimism for improved agricultural yields. Persistent inflation, notably in essential commodities like vegetables and staples, remained a cause for concern, resulting in subdued rural demand. The approaching festival season should stimulate greater demand for FMCG products.
New range of Premium products
The newly launched products, including 7 Grain, Ragi, and Digestive biscuits, have been well-received in the market. The Sports Nutrition division has also experienced significant growth with the introduction of new packaging and flavors.
Expanding its reach, the company successfully launched Nutrela Maxx Millet Ragi Choco in the West Bengal market following its successful debut in Southern Markets. Additionally, the company introduced a wide range of Dry Fruit products under Nutrela Maxx Nuts which are now available on various eCommerce platforms.
In a significant brand development, the company has partnered with a renowned celebrity to serve as the brand ambassador for its Edible Oil portfolio.