Propel Funeral Partners (PFP) H1 2025 earnings summary

Executive summary

• Revenue increased 12% year-over-year to AUD 115.2 million in 1H FY25, driven by acquisitions, organic growth, and higher funeral and cemetery operations.

• Operating EBITDA rose 9.2% to AUD 29.9 million, with a margin of 26% and gross profit margin improving to 70%.

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

• Fully franked interim dividend of 7.4c per share declared, with an 85% payout ratio.

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

Financial highlights

• Funeral volumes increased 8.6% year-over-year; comparable volumes up 1.0%; average revenue per funeral was AUD 6,727, up 1.5% overall and 2.6% on a comparable basis.

• Gross margin improved by 60 basis points to 70% compared to the prior period.

• Cash flow conversion remained strong at 96.1%.

• Net debt at AUD 123.8 million as of 31 December 2024; gearing ratio at 26%, net leverage ratio at 1.9x.

• Available funding capacity of approximately AUD 144 million for future growth.

Outlook and guidance

• Positive trading momentum continued into January 2025, with revenue growth exceeding 10% year-over-year.

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