Latest trading report shows ITC's tobacco business revenue up 8%

According to a July 20 report from Tobacco Reporter, ITC’s tobacco business showed remarkable resilience this quarter, with net segment revenue and pre-tax profit rising 8.5% and 8% year over year, respectively.

This strong performance was attributed to stable fiscal policy and tighter enforcement against illegal cigarette sales, which helped the company recover market share previously lost to the black market.

At the same time, ITC strengthened its product portfolio through innovation, improved product quality, and expanded product availability. Despite rising raw material costs, the company successfully addressed this challenge through strategic cost management and pricing measures.

In addition, ITC received regulatory approval to manufacture nicotine products, laying the groundwork for future growth.

However, in its paperboards, paper, and packaging business, the company faced challenges including competition from low-priced Chinese suppliers, weak demand in export markets, and a sharp decline in global pulp and paper prices. ITC said that despite market pressure, it noticed signs of a recovery in demand toward the end of the quarter.