Friday, June 14, 2024

Proventus Agrocom Limited Reports 96% Year-over-Year Growth for FY24

Must Read

Proventus Agrocom Limited (ProV), an integrated health food brand, has announced its financial results for the fiscal year ending March 31, 2024. The company reported a Profit After Tax (PAT) of Rs 7.2 crore in FY24, marking a 96% year-over-year (YoY) increase. This performance underscores ProV’s robust brand growth, healthy profitability, and expanding consumer reach.

Commenting on the significant growth, Durga Prasad Jhawar, CEO and MD, Proventus Agrocom Limited, said, “We are proud to share our operational performance during FY24. We achieved a 43% year-on-year ProV brand sales growth, totaling 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. Achieving this growth required us to increase our production capacity to over 1.25 lakh units per day, showcasing our execution capability and efficiency.”

ProV’s EBITDA reached INR 11.95 crore, reflecting a 54% year-on-year growth, while the gross margin improved to 17%, up from 14% last year. The total consolidated income reached ₹502 crore in FY24, showing a strong year-on-year growth of 19.5%.

These financial results highlight ProV’s robust growth trajectory, supported by strategic initiatives, operational excellence, and a commitment to customer satisfaction.

In the context of India’s ‘healthy snacking’ landscape, particularly in dry fruits, nuts, seeds, and berries, a substantial gap exists. The three growth drivers that can triple-push the category include:

1. Shift to Organized Sector: The transition from unorganized to organized sectors is driving growth in the dry fruits industry, enhancing product availability, quality control, and customer trust.

2. Increasing Dry Fruit Consumption: Rising health awareness and changing dietary preferences are boosting dry fruit 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 organized brands.

With a significant performance over the last three years and a culture of delivering quality products, ProV aims to achieve significant growth by FY28, targeting brand sales of INR 1000 crore, up from INR 303 crore in FY24, translating to a compound annual growth rate (CAGR) of 32%. In addition to sales growth, ProV plans to improve gross margins from 17% in FY24 to 30.1% by FY28. To reach these targets, ProV will undertake several strategic initiatives, including accelerated expansion of general trade, diversification of the sales mix, product innovation, and targeted marketing and branding strategies.

Latest News

Indian Dairy Association Inaugurates New Office at Rajasthan State Chapter

The Indian Dairy Association (IDA) has inaugurated a new office at its Rajasthan State Chapter. The event was graced...