Promote funeral partners (ASX:PFP)the second largest death care provider in Australia and New Zealand after Invocare (ASX:IVC)has released a trading update ahead of its 2024 Annual General Meeting, which will be held later today.
The company operates 198 locations, including 38 cremation facilities and nine cemeteries, with a significant presence in both regional and metropolitan areas.
President Brian Scullin highlights Propel’s continued growth, highlighting its successful acquisition strategy. Propel reported a 24.2% increase in revenue to $209.2 million for FY24, led by a 20.1% increase in funeral volumes, supported by recent acquisitions. The company’s operating EBITDA increased 20.5% to $55.4 million, and reported pro forma net profit after tax (NPAT) of $23.4 million, reflecting an increase of 12, 2%.
Propel CEO Albin Kurti outlined a strong start to fiscal 25, with first-quarter revenue up 16% year-over-year to $61.5 million and operating EBITDA up 15% at $16.5 million. Propel performed approximately 6,150 funerals in the quarter, a 13% increase in volume compared to the prior year.
The company’s strategy remains focused on capitalizing on a fragmented market by acquiring funeral homes and related infrastructure. The Board’s confidence in the company’s growth prospects was underlined by fully franked dividends for FY24 of 14.4 cents per share.
With $153 million in available funding, Propel is positioned to pursue additional acquisitions to strengthen its service network.
Propel leadership noted that while death volumes in the industry may fluctuate, long-term demographic trends point to steady growth, driven by an aging population and rising mortality rates.