Tobacco manufacturing company ITC Limited is earning by selling FMCG products except Tobacco. ITC has sold Rs 29,000 crore worth of fast-moving consumer goods (FMCG), excluding tobacco, in the financial year 2022-23. Consumers bought the maximum number of FMCG items except tobacco. Due to which ITC company has benefited 20% more than the previous year. The company's growth has been 9 percent in FY22 and 11 percent in FY21. Because the growth of the company was increasing at a slow pace due to the Corona epidemic.
The company said in a note that the company's gross sales from FMCG will be less than the customer's expenditure. In the last financial year, ITC's gross sales from FMCG excluding cigarettes was Rs 19,122.5 crore, which was 19.5% higher than FY22. ITC has earned Rs 29,000 crore from the FMCG business amid rising consumer spending.
Ebitda margin improved
In the note, ITC said EBITDA (earnings before interest, taxes, depreciation and amortization) of the FMCG business for FY23 grew by 34.9% to Rs 1,954 crore, while EBITDA margin improved from 9.1% in FY22, despite higher commodity prices. There has been an improvement up to 10.2%. This margin expansion was driven by multi-prong interventions such as premiumisation, supply chain agility, value addition actions, digital campaigns, strategic cost management and fiscal incentives including production linked incentives (PLIs).
Company betting on FMCG except tobacco
ITC Group is betting on FMCG business to de-risk itself from cigarette business to enhance its growth in future. Which has been under regulatory scrutiny for many years. ITC has said in the note that it will continue to pursue inorganic growth opportunities in FMCG. In the personal care business, ITC has also acquired brands like Savlon, Nimail and Charmis.
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