According to 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, against Rs 24,000 crore.
In FY22 and FY21 the growth rate was much lower at 9% and 11% respectively.
Consumer spending is a measure of business performance that includes net sales turnover of brands, channel margins, and taxes. It indicates the amount of money consumers have spent on products. The gross sales of ITC’s non-cigarette FMCG products in the previous fiscal year were Rs 19,122.5 crore, showing a growth of 19.5% compared to the fiscal year 2022.
According to ITC, the FMCG business’ EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 34.9% to Rs 1,953.97 crore in FY23, while the EBITDA margin improved to 10.2% from 9.1% in FY22, despite high commodity and input prices.
The margin expanded on the back of multi-pronged interventions such as supply chain agility, judicious pricing actions, strategic cost management, premiumization, fiscal incentives, and digital initiatives.
The conglomerate is placing a strategic bet on the FMCG business to drive future growth and reduce its dependence on the cigarette industry, which has faced heightened regulatory scrutiny for a considerable period of time.
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