Mumbai – Proventus Agrocom Limited (ProV), a leading integrated health food brand, announced its financial results for the fiscal year ended March 31, 2024 (FY24). The company reported a Profit After Tax (PAT) of ₹7.2 crore in FY24, marking an impressive 96% year-over-year (YoY) increase. The stellar performance underscores ProV’s strong brand growth, healthy profitability, and expanding consumer reach.
CEO and MD Mr Durga Prasad Jhawar stated that, “We are proud to share our operational performance during FY24. We achieved a stellar 43% year-on-year ProV brand sales growth, totalling INR 303 crore. This achievement is significant for two reasons: first, we are among the few companies in our category to achieve this level of sales while being profitable; second, this sales figure represents approximately 2 crore units sold, a testament to the trust our customers have in our products and our ability to reach them. Achieving this growth required us to increase our production capacity to over 1.25 lakh units per day, showcasing our execution capability and efficiency.”
Financially, ProV has reached remarkable milestones, their EBITDA reached ₹11.95 crore, which is year-on-year growth of 54%, their gross margin improved to 17%, from 14% in last year. Additionally, their profit after tax (PAT) stood at ₹7.2 crore, demonstrating significant year-on-year growth of 96%. Looking at the broader picture, FY24 was a year of exceptional growth, with the total consolidated income reaching ₹502 crore, reflecting a strong year-on-year growth of 19.5%. These financial results speak of ProV’s robust growth trajectory, supported by their strategic initiatives, operational excellence, and commitment to customer satisfaction. The rising acceptance of the ProV brands and its strategic positioning will continue to lead it to new heights.
Looking ahead, ProV aims to achieve significant growth by FY28, targeting brand sales of 1000 crore INR, up from 303 crore INR in FY24, which translates to a (CAGR) of 32%. In addition to sales growth, we project an improvement in gross margins from 17% in FY24 to 30.1% by FY28. We plan to reach these ambitious targets through several strategic initiatives, including the accelerated expansion of general trade, diversification of the sales mix, product innovation, and targeted marketing and branding strategies.
In the context of India’s “healthy snacking” landscape, particularly within the realm of dry fruits, nuts, seeds, and berries, a substantial gap exists. The growth drivers for the organised dry fruits industry in India are robust and multi-faceted, providing a solid foundation for future expansion. The industry’s “Triple Push” encompasses three primary catalysts:
1. Shift to Organized Sector: The transition from unorganised to organised sectors is driving growth in the dry fruits industry, enhancing product availability, quality control, and customer trust.
2. Increasing Dry Fruits Consumption: Rising health awareness and changing dietary preferences are boosting dry fruits consumption in India, driving demand for branded products.
3. Rising Per Capita Income: Higher disposable incomes in India are leading to increased spending on premium, health-focused foods like dry fruits, supporting the growth of organised brands.
With the impressive growth over the last three years and a culture of delivering quality products and profitable growth, ProV aims to achieve significant growth by FY28, targeting brand sales of 1000 crore INR, up from 303 crore INR in FY24, which translates to a (CAGR) of 32%. In addition to sales growth, ProV plans to project an improvement in gross margins from 17% in FY24 to 30.1% by FY28. The plan to reach these ambitious targets is through several strategic initiatives, including the accelerated expansion of general trade, diversification of the sales mix, product innovation, and targeted marketing and branding strategies.
