ITC’s cigarette volumes fall 5% in Q1 as FMCG growth cushions earnings hit
ITC’s cigarette net revenue fell 25% and segment EBIT dropped 35% year-on-year after tax changes, though volumes declined less than feared. The company launched 30-plus variants and used staggered price hikes, while non-cigarette FMCG revenue rose 12%.
ITC’s cigarette earnings missed after tax changes, but Q1 volumes declined less than expected. The company is using staggered price hikes and 30-plus variants to protect share against illicit trade, while FMCG non-cigarette revenue rose 12%.
Why this matters
The Q1 update follows prior signals that ITC profit fell 15.6% as FMCG-Others grew 12%, cigarette sales slumped 22% after tax-led pricing, and volumes held up better than feared amid illicit-trade concerns.
Retail-company signals are accelerating, up 225650% QoQ.