ITC consumer goods revenues up 14% in FY23

Home-grown consumer goods major ITC Ltd reported a 14 per cent increase in revenues from its packaged consumer goods business in the financial year 2022-23, with income from the cigarettes business also growing. 

The cigarettes to hotels conglomerate on Tuesday said revenues from its packaged consumer goods business rose at a compounded annual growth rate (CAGR) of 14 per cent over the last three years, while the company added 300 products to its consumer goods list during the period.

ITC said revenues from its packaged consumer goods business comprising brands such as Aashirvaad atta, Sunfeast cookies, Fiama soaps, Engage deodorants, etc, stood at Rs19,123 crore in 2022-23.

Earnings before interest, taxes, depreciation, and amortization (Ebitda).of the business saw a 310 basis-point jump in the last three years, the company stated in a presentation to institutional investors and financial analysts on Tuesday. Revenues from the packaged consumer goods business (excluding cigarettes) has grown five-fold since 2009-10.

The company is also entering related businesses such as supplements to the Aashirvaad, Sunfeast and Fiama brands, among other new product launches. Simultaneously, it is also strengthening its premium brands.

Besides, ITC is tapping new areas of growth such as health and wellness products through brands such as Yogabar and Mother Sparsh. 

The company has targeted an Ebitda margin expansion of 80-100 bps every year, with 30-40 bps generated from value-added premium products, 20 bps from scale and balance from cost optimisation, according to the presentation.

ITC has identified a future-ready portfolio, an efficient supply chain, smart-omni-channel network and value accretive mergers and acquisitions as some of the strategic pillars to grow its consumer goods business over the coming years. 

“ITC is building a large future-ready, competitive and resilient FMCG business for today and tomorrow with focus on growth with higher profitability," Sanjiv Puri, chairman and managing director of ITC, said.

“A digital superstructure — DigiArc has been put in place to create a smart enterprise ecosystem utilising AI, Industry 4.0, etc. spanning insighting to product development, supply chain to distribution and content to commerce-raising efficiencies, enhancing agility and enabling higher order competitiveness. Digital commerce is growing at a fast pace. New vectors of growth being pursued through higher value added products and services, opportunities at the intersection of digital and sustainability," he added.