Slide 1: Q1 FY25 Results
Q1 FY25 Results 01st August, 2024 |1|
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions o
Slide 3: Macro Economic Context
Macro Economic Context |3|
Slide 4: Macro Economic Environment
Macro Economic Environment Global outlook steady with downside risks India remains resilient Real GDP Growth YoY 7.7 3.7 2.1 2.4 1.4 3.2 1.7 2.6 0.9 5.0 World Adv. Eco US Euro Area China 2023 2024f 2010-19 average Major Central Banks remain cautious in their stance despite FY25 GDP expected to g
Slide 5: Consumption remains subdued
Consumption remains subdued Normal Monsoons augur well Passenger Vehicles – retail sales declining (YoY%) Food inflation remains elevated (Qtly YoY%) Rainfall status: +2% LPA as on 30th Jul’24 1 1 . 0 % CPI Food CPI 1 0 . 0 % 9.3% 8.9% 8.0% 9 .0 % 8 .0 % 7 .0 % 6.4% 7.3% 6 .0 % 5.6% 4.9% 5 .0 % 4 .0
Slide 6: Macro Economic Environment Key Positives and Monitorables
Macro Economic Environment Key Key Positives Monitorables Moderating Stable growth Geopolitical Agri Commodity Inflation outlook disruptions Inflation Strong Bank & Monetary easing Buoyant Tax Rural Demand Corporate cycle in Advanced collection recovery Balance Sheets economies Purposeful Policy Ext
Slide 7: Q1 FY25 Results Business Highlights
Q1 FY25 Results Business Highlights |7|
Slide 8: Key Highlights: Q1 FY25
Key Highlights: Q1 FY25 Gross Revenue up 7.3% YoY in a challenging operating environment, driven by Hotels, Value Added Agri products and Leaf Tobacco ̶ FMCG-Others & Cigarettes delivered resilient performance amidst subdued demand conditions ̶ Green shoots of demand recovery in the Paper segment;
Slide 9: Key Highlights: Q1 FY25
Key Highlights: Q1 FY25 Hotels Segment Revenue up 10.9% YoY; Segment PBIT up 11.5% YoY ̶ Robust performance despite fewer wedding dates & extreme heatwave/elections impacting domestic travel & out-of-home dining ̶ ITC Ratnadipa^, Colombo launched in April’24; receives excellent guest response and
Slide 10: Key Highlights: Q1 FY25
Key Highlights: Q1 FY25 Paperboards, Paper and Packaging Segment performance reflects the impact of low-priced Chinese supplies in global markets including India, muted domestic demand conditions and surge in wood prices ̶ Subdued realisations, surge in domestic wood prices and ocean freight weigh
Slide 11: FMCG Others
‘¢A PURE MATCH © IS DRAWN TOGETHER BY THE ARO-MA OF L¥VE GAME-CHANGERS- ‘who made us all go MM ENA Enduring Value classmate 5 (st iM ai) STRENGTH BHI, #HappyFathersDay FMCG Oth ers . WARMTH BHI! : owes | ITC MASTER
Slide 12: FMCG Others – Q1 FY25
Resilient performance amidst muted demand conditions and FMCG Others – Q1 FY25 extreme heatwaves in parts of the country Segment Revenue up 6.3% YoY on a high base (2-yr CAGR +11.1%) - Staples, Snacks, Dairy, Personal Wash, Fragrances, Homecare and Agarbatti drive growth - Extreme heatwave adverse
Slide 13: FMCG Others – Q1 FY25
FMCG Others – Q1 FY25 Q1 Segment EBITDA margins at 11.3%, up 25 bps YoY - Margin expansion sustained through multi-pronged interventions viz. premiumisation, supply chain optimisation, digital initiatives across the value chain and strategic cost management Annual Trends Q1 Trends Full Year Seg. E
Slide 14: Purposeful Innovation
Purposeful Innovation Aashirvaad Svasti Ghee YiPPee! Korean Noodles Sunfeast Biscuits Sunfeast Smoothie Bingo! Original Style 90% Lower Cholesterol Fiery Hot Style | Spicy Kimchi Style Super Egg & Milk Sitaphal | Banana Himalayan Pink Salt Oats Aashirvaad Spices Fabelle Exquisite Candyman Tadka Loll
Slide 15: Deepening Consumer Engagement
Deepening Consumer Engagement Cheering India to Victory Celebrating Moments | 15 |
Slide 16: Deepening Consumer Engagement
Deepening Consumer Engagement Sharpening Value Proposition Har tiffin ki sweet ending Dil se karo baat Bhagwan ke sath | 16 |
Slide 17: Greener Choices for Consumers
Greener Choices for Consumers | 17 |
Slide 18: Creating Structural Advantage
Creating Structural Advantage Scale| Productivity| Costs ICML Khordha Solar Plant, Karnataka Personal Care Facility, Uluberia Roof top Solar Plant Kapurthala & Khordha ICML: Integrated Consumer Goods Manufacturing and Logistics Facility | 18 |
Slide 19: FMCG Cigarettes
MM END Enduring Value FMCG Cigarettes
Slide 20: FMCG Cigarettes – Q1 FY25
FMCG Cigarettes – Q1 FY25 Portfolio Vitality | Product Availability | Execution Excellence Net Segment Revenue* up 7% and Segment PBIT up 6.5% YoY Segment Revenue Sharp cost escalation in leaf tobacco & other inputs, largely mitigated through improved mix, strategic cost management & calibrated
Slide 21: FMCG Cigarettes Reinforcing market standing
FMCG Cigarettes Reinforcing market standing Innovation Portfolio Fortification • Classic Connect • Gold Flake Neo SMART Filter • Gold Flake SLK • Bristol Deluxe • American Club Clove Mint • Flake XL • Gold Flake Indie Mint • Flake Skipper • Classic Icon Recent Introductions • Classic Icon Kings • Am
Slide 22: Hotels Business
MM ENA Enduring Value Hotels Business
Slide 23: Hotels – Q1 FY25
Hotels – Q1 FY25 Robust performance continues Revenue up 11% - despite fewer wedding dates, extreme heatwave/election Segment Revenue impacting domestic travel & out-of-home dining 666 cr. 10.9% ITC Ratnadipa, Colombo launched in April’24 225 rooms and 8 F&B outlets operational; Receives exc
Slide 24: ITC Ratnadipa, Colombo, Sri Lanka
A Magnificent icon of Responsible Luxury ITC Ratnadipa, Colombo, Sri Lanka^ launched in Colombo in April’24 Inaugurated by President of Sri Lanka, His Excellency Ranil Wickremesinghe in the presence of Hon’ble Prime Minister of Sri Lanka Dinesh Gunawardena Jala Anganaya Indian Ocean Pavilion ^A proj
Slide 25: Executing 'Asset Right' Strategy – Recent openings
Executing ‘Asset Right’ Strategy – Recent openings Mementos, Jaipur Devasom Resort & Spa, Kolkata Urvashi’s Retreat, Manali Fortune Resort & Wellness Spa Bhaktapur, Nepal Healthy Pipeline of Management Contracts – Phased openings over the next few quarters | 25 |
Slide 26: Agri Business
MEN Enduring Value Agri Business
Slide 27: Agri Business
Agri Business Stock limits on Wheat and restrictions on exports continue to limit business opportunities in the bulk commodities space Strong growth in Value Added Agri products driven mainly by Coffee & Spices Robust growth in Leaf Tobacco exports driven by agile execution, strong customer re
Slide 28: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 28 |
Slide 29: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging Challenging operating environment Low priced Chinese supplies in global markets including India, muted domestic demand conditions and surge in wood prices Capacity augmentation/debottlenecking projects successfully completed during the quarter Segment Revenue ꟷ Per
Slide 30: Financials
Financials | 30 |
Slide 31: Key Financials
Key Financials YoY Rs. Cr. Q1 FY25 Q1 FY24 Growth Gross Revenue 18,077 16,843 7.3% Net Revenue 16,873 15,659 7.8% EBITDA 6,295 6,250 0.7% PBT 6,552 6,546 0.1% PAT 4,917 4,903 0.3% Standalone basis | 31 |
Slide 32: Segment Revenue
Segment Revenue • Cigarettes: Net Revenue up 7% YoY Q1 YoY • FMCG Others Rs. cr. FY25 FY24 growth - Revenue up 6% YoY amidst muted demand conditions and Segment Revenue extreme heatwaves in parts of the country a) FMCG - Cigarettes 7918 7465 6.1% • 2 Yr. CAGR at 11.1% - Others 5491 5166 6.3% - Stapl
Slide 33: Segment Results
Segment Results Q1 YoY Rs. cr. FY25 FY24 growth • FMCG Others Segment Results ‒ Segment Results up 10.4% YoY, 53% 2y CAGR a) FMCG - Cigarettes 4960 4656 6.5% ‒ EBITDA margin at 11.3% - Others 476 431 10.4% • Up 25 bps YoY; sequential uptick in prices witnessed in Total FMCG 5435 5087 6.9% certain co
Slide 34: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 34 |
Slide 35: Impactful Social Performance
Impactful Social Performance Off-farm livelihood ITC e-Choupal Natural Resources On-farm livelihood Climate Smart Agriculture diversification – livestock 4 Million Farmers Management – Water diversification – Afforestation Over 27.9* lac acres covered development empowered Stewardship Over 11.7 lac
Slide 36: Sustainability 2.0 Sustainability Targets 2030
Sustainability 2.0 Sustainability Targets 2030 REDUCE I RECYCLE I RESTORE Raising the Bar Strategic Interventions to Combat Climate Change Renewable Specific GHG Recyclable Plastic Plastic Energy Emissions Packaging Neutrality De-Carbonization Climate Adaptation and 100% Resilience 50% 50% 100% Coll
Slide 37: Sustainability – Highlights
Sustainability – Highlights • Comprehensive policies & guidelines institutionalized • 9 ITC Units have received AWS (Alliance for Water Stewardship) Platinum certification till date • 50% energy from renewable sources achieved for the first time, well ahead of 2030 target • Plastic Neutrality commit
Slide 38: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 38 |
Slide 39: Links
Links Product/initiative Link Bingo! on Instagram https://www.instagram.com/bingo_snacks/ YiPPee! on Instagram https://www.instagram.com/sunfeast_yippee/ Aashirvaad on Instagram https://www.instagram.com/aashirvaad/ Sunfeast Dark Fantasy on Instagram https://www.instagram.com/sunfeastdarkfantasy/ Mo