ITC trims ad spends in FY25 despite 10% revenue growth

ITC Ltd. has reported a slight reduction in its advertising and sales promotion expenses for the financial year ended March 31, 2025. The company spent Rs 1,331.69 crore on marketing activities during the year, down 3.9 percent from Rs 1,385.64 crore in FY24.

This dip in ad spends came even as the company posted strong growth in its topline. Revenue from operations rose 10.4 per cent year-on-year to Rs 81,612.78 crore in FY25, compared to Rs 73,891.43 crore in FY24. Including other income, total income stood at Rs 84,142.47 crore, up 9.9 percent from Rs 76,584.65 crore in the previous year.

Among business segments, the FMCG-cigarettes division remained the single largest contributor, clocking Rs 35,893.57 crore in gross revenue, a rise of 6.6 per cent over Rs 33,667.97 crore in FY24. 

Branded packaged food products brought in Rs 18,282.42 crore, growing 6.1 percent year-on-year. The 'others' FMCG category, which includes personal care, stationery, agarbattis and matches, declined marginally to Rs 3,722.85 crore from Rs 3,764.65 crore.

ITC’s agri business saw sharp expansion. Revenue from unmanufactured tobacco rose 38.1 percent to Rs 3,380.76 crore, while other agri products such as wheat, rice, spices and coffee surged 45.8 percent to Rs 8,863.24 crore from Rs 6,076.60 crore in FY24.

The paperboards, paper and packaging segment saw modest growth. Paperboard and paper sales increased 1.5 percent to Rs 5,957.90 crore, while revenue from packaging and printed materials rose 1.9 percent to Rs 617.98 crore.

The company’s 'others' segment, which includes IT services and hospitality operations like ITC Grand Central Hotel, reported revenue of Rs 4,224.04 crore, marking a 14.4 percent increase from Rs 3,691.55 crore in FY24.

Even with broad-based growth across key categories, ITC maintained a conservative approach to advertising investments in FY25, opting to optimise spends amid a focus on profitability and operational efficiency.