ITC's FMCG Business Clocks Rs.29,000 Revenue in FY22
Based on the company's most recent investor note, consumers spent more than Rs 29,000 crore on ITC's fast moving consumer goods (FMCG) excluding tobacco in fiscal 2022-23.
Consumer spending on the Kolkata-based company's 25 mother brands increased by more than 20% in the previous fiscal year, when it was Rs 24,000 crore.
During the pandemic, growth was substantially slower: 9% in FY22 and 11% in FY21.
Consumer spend is the net sales turnover of the brands, plus channel margins and taxes – an indicator of business performance. The company's FMCG gross sales will be lower than the consumer expenditure. ITC's gross sales from non-cigarette FMCG were Rs 19,122.5 crore last fiscal year, up 19.5% from fiscal 2022.
According to ITC, the FMCG business' Ebitda (earnings before interest, taxes, depreciation, and amortisation) increased 34.9% to Rs 1,953.97 crore in FY23, while the Ebitda margin rose to 10.2% from 9.1% in FY22, despite rising commodity and input prices. Premiumization, supply chain agility, prudent pricing measures, digital initiatives, strategic cost management, and fiscal incentives, particularly production-linked incentives, all contributed to margin improvement.