ITC‘s revenue from its fast-moving consumer goods (FMCG) business witnessed a substantial growth of 20 per cent in the fiscal year 2022-23 (FY23), according to a recent media reports. The revenue reached Rs 29,000 crore compared to Rs 24,000 crore in FY22. Notably, this impressive growth does not include revenue from its tobacco business, and it outperformed the 9 per cent growth in FY22 and 11 per cent growth in FY21.
The report, citing an investor note from the company, highlighted that the earnings before interest, taxes, depreciation, and amortization (EBITDA) of ITC‘s FMCG business grew by 34.9 per cent to Rs 1,954 crore in FY23. Despite facing challenges such as high commodity and input prices, ITC managed to improve its EBITDA margin from 9.1 per cent in FY22 to 10.2 per cent in FY23. The growth was primarily driven by factors like premiumisation, supply-chain agility, cost management, and the Centre’s production-linked incentive (PLI) scheme.
ITC also revealed its focus on acquisitions in the current year, with recent acquisitions of brands like Savlon, Nimyle, and Charmis. The company is strategically shifting its focus to strengthen its FMCG business and reduce dependence on the cigarette business, which has been under regulatory scrutiny for an extended period.
In the fourth quarter of FY23, ITC reported a notable 22.66 per cent rise in consolidated net profit, amounting to Rs 5,225.02 crore, driven by robust growth across its operating segments. This marked an improvement compared to the net profit of Rs 4,259.68 crore recorded in the same quarter of FY22. During the period under review, ITC‘s revenue from operations witnessed a 7 per cent increase, reaching Rs 18,799.18 crore. The company’s total expenses increased by 2.18 per cent to Rs 12,907.84 crore in the quarter. Furthermore, ITC‘s total income in the March quarter grew by 7.75 percent, reaching Rs 19,667.94 crore.
In its earnings statement, the Kolkata-headquartered company emphasized its sustained “strong growth momentum” across all its operating segments.