ITC Lifestyle exits retailing business

FMCG major, ITC has exited its lifestyle retailing business. The decision was made after a strategic review of its business portfolio. In June this year, the chairman of ITC had indicated significant changes in the lifestyle retailing business. In the company’s annual report, Sanjeev Puri had said that ITC has restructured the business during the year. ITC shares witnessed positive sentiment on Monday following the June 2022 quarterly financial performance and even touched a 52-week high.

ITC shares closed on BSE 309.65 each, an increase of 0.68%. The company touched a new 52-week high 316.65 each during trading hours. The market cap of the company is approx. 3,83,194.52 crore.

“Following a strategic review of its business portfolio, the company has exited the lifestyle retailing business,” ITC said in its regulatory filing today.

“After a strategic review of the business portfolio a few years back, your company has restructured the lifestyle retailing business during the year,” ITC Chairman Sanjeev Puri said in the company’s Annual Report for FY22 on June 22. The product portfolio has been strengthened in alignment with new opportunities and enterprise strengths, with a focus on strengthening the core, addressing adjacencies through world-class mother brands and building future categories to power growth does.”

During Q1FY23, ITC posted a consolidated net profit of 4,389.76 crore, up 33.97% from 3,276.48 crore in the same quarter a year ago. FMCG major’s operations up 39% in total revenue 19,831.27 crore from 14,240.76 crore in the same period last year. was on EBITDA 5,646.10 crore with a margin of 32.7% for the latest quarter. Cigarette revenue up 29% year over year 6,608 crores.

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Among segments, FMCG revenue stood at Q1 FY23 4,451 crore, up 19.5% annually, while revenue from hotels came in 554 crores growing at 332.8% annually. the revenue from the paper segment was 2,267 crore, an increase of 43.2% per annum.

Puri also said in the annual report, that with increased scale and margin expansion, FMCG businesses are expected to contribute more and more to ITC’s profit pool, thereby setting the stage for further value addition opportunities.

ITC’s lifestyle retailing business has established a nationwide retail presence through its Wills Lifestyle chain’s exclusive specialty stores. Wills Lifestyle offers discerning customers an attractive choice of Wills Classic Work Wear, Wills Sport Relaxed Wear, Wills Clublife Evening Wear and Wills Signature Designer Wear. Additionally, ITC also established John Players as a brand that provides a complete fashion wardrobe to today’s male youth.

Notably, according to the website, ITC’s Wills Lifestyle is available in 90 exclusive stores across 40 cities and over 500 ‘shop-in-shops’ across leading departmental stores and multi-brand outlets. The presence of ‘John Players’ expanded to 350 flagship stores and 1,400 multi-brand outlets and departmental stores.

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