ITC's FMCG revenue up 20% in FY23 as it aims to de-risk from tobacco biz

ITC's revenue growth is impressive as compared to 9 per cent in FY22 and 11 per cent in FY21

ITC's revenue from its fast-moving consumer goods (FMCG) business in 2022-23 (FY23) rose 20 per cent to Rs 29,000 crore from Rs 24,000 crore in FY22, The Economic Times (ET) reported on Thursday. This growth, which does not include revenue from its tobacco business, is impressive compared to 9 per cent in FY22 and 11 per cent in FY21.

The ET report, which cited an investor note from the company, said that earnings before interest, taxes, depreciation and amortisation (Ebitda) of the FMCG business for FY23 grew 34.9 per cent to Rs 1,954 crore. Despite high commodity and input prices, the Ebitda margin improved to 10.2 per cent from 9.1 per cent in FY22.

It was mainly driven by premiumisation, supply-chain agility, cost management and the Centre's production-linked incentive (PLI) scheme.

The company also said that it will focus more on acquisitions in the current year. ITC has recently acquired brands like Savlon, Nimyle and Charmis.

Moreover, the company is also focussing more on its FMCG business and de-risk itself from the cigarette business. It has been under regulatory scanner for years now.

In the fourth quarter of FY23, ITC reported a 22.66 per cent rise in consolidated net profit at Rs 5,225.02 crore, led by a strong growth momentum across operating segments.

The company posted a net profit of Rs 4,259.68 crore in the same quarter in FY22.

Its revenue from operations had increased 7 per cent to Rs 18,799.18 crore in the period under review. ITC's total expenses increased 2.18 per cent to 12,907.84 crore during the quarter.

The total income of ITC in the March quarter grew 7.75 per cent to Rs 19,667.94 crore.

The Kolkata-headquartered company sustained "strong growth momentum" across its operating segments, it said in its earning statement.