Propel Funeral Partners (PFP) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 12.0% year-over-year to $115.2 million, driven by acquisitions, organic growth, and higher funeral and cemetery operations.

• Operating EBITDA increased 9.2% to $29.9 million, with a margin of 26.0%.

• Operating NPAT grew 21.1% to $12.2 million; statutory NPAT rose 42.3% to $11.8 million.

• Managing Director and Co-Founder Albin Kurti will retire on 31 August 2025 after 14 years, with succession planning underway and no change to strategic direction expected.

• Three acquisitions totaling ~$13 million were completed or announced in FY25, including Decra Art Headstones & Monuments, Twentymans, and Richmond Funeral Home.

Financial highlights

• Funeral volumes totaled 11,549 in 1H FY25, up 8.6% year-over-year and 1.0% on a comparable basis; average revenue per funeral was $6,727, up 2.6% on a comparable basis.

• Gross profit margin improved to 70.0%, up from 69.4% in the prior period.

• Cash flow conversion remained strong at 96.1%.

• Interim dividend declared at 7.4 cents per share, fully franked, up from 7.2 cents in 1H FY24, with an 85% payout ratio.

• Net debt at $123.8 million as of 31 December 2024; gearing ratio at 26%, net leverage ratio at 1.9x, well within covenant limits.

Outlook and guidance

• Positive trading momentum continued into January 2025, with revenue growth exceeding 10% year-over-year, supported by higher funeral volumes and average revenue.

• The company expects to benefit from favorable demographic trends, strong funding, and further acquisitions in a highly fragmented industry.

• Demand for funeral services is not correlated to inflation, interest rates, or the economic cycle.

• Leadership transition planned, with the Board to implement succession plan for the retiring Managing Director.