Propel Funeral Partners Ltd. · ASX:PFP
Propel Funeral Partners — H1 2025 Earnings Presentation
34 slides from Propel Funeral Partners's earnings presentation, Feb 24, 2025
Slide 1: FY25 First Half Results Investor Presentation
FY25 First Half Results Investor Presentation 24 February 2025 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation contains summary information about Propel Funeral Partners Limited No representation or warranty, express or implied, is made as to the fairness, accuracy, (ACN 616 909 310) (Propel) and its activities current as at the date of this presentation. Pro
Slide 3: Presenters
Presenters Albin Kurti Lilli Rayner Fraser Henderson Managing Director Chief Financial Officer Head of M&A, General Counsel and Company Secretary 3
Slide 4: Agenda
Agenda 1. Key highlights of 1H FY25 2. Company overview 3. 1H FY25 financial results detail 4. Industry trends and acquisitions 5. Summary and outlook 6. Q&A Appendices 4
Slide 5: 1. Key Highlights of 1H FY25
1. Key Highlights of 1H FY25 PROPEL FUNERAL PARTNERS PrP
Slide 6: Key Highlights of 1H FY25
Key Highlights of 1H FY25 Revenue Funeral Volumes Average Revenue Per Funeral 1 TRADING1 $115.2m 11,549 $6,727 ~12.0% ~8.6% ~2.6% on a comparable basis Operating EBITDA Operating NPAT Cash Flow Conversion 2 EARNINGS1 $29.9m $12.2m ~96.1% ~9.2% ~21.1% ~470bps Dividend Gearing Ratio Funding Capaci
Slide 7: 2. Company Overview
2. Company Overview PROPEL FUNERAL PARTNERS PrP
Slide 8: Geographic Presence
Geographic Presence 202 operating locations1 (121 owned / 81 leased), including 40 cremation facilities and 9 cemeteries 1 August 2013 2 February 2025 Queensland Queensland 1 Western 30 Australia South Australia 15 46 New South Wales 11 1 ACT 19 Victoria 62 New Zealand Tasmania 18 Geographic footpri
Slide 9: Brand Portfolio
Brand Portfolio Diversified single and multi-site brands with strong local community awareness Australia NZ Pinegrove Funerals ismore Funeral Services Southern Funeral Home Acquisitions completed and/or announced since 1 July 2024. 9
Slide 10: Track Record
Track Record Propel has maintained a strong growth trajectory 209.2 Funeral volumes (#) 21,655 Revenue ($m) 18,029 168.5 16,537 145.2 13,299 13,916 120.4 115.2 12.0% 11,304 10,637 11,549 8.6% 110.8 102.9 10,111 95.1 80.9 6,054 46.1 2,967 22.4 1,625 10.9 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY2
Slide 11: Average Revenue Per Funeral Growth
Average Revenue Per Funeral Growth Compound annual growth rate (CAGR) of ~3.1% since FY15 $6,727 ~2.6% (comparable) $6,630 (total up 1.5%) CAGR ~3.1% $6,398 $6,038 $5,917 $5,672 $5,585 $5,508 $5,223 $5,099 $4,976 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H FY24 1H FY25 11
Slide 12: Cash Flow Conversion
Cash Flow Conversion Consistently strong 104.0% 103.4% 101.8% 100.8% 98.9% 96.5% 97.4% 100.2% 95.4% 96.1% ~99% average 93.7% (since FY15) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H FY24 1H FY25 12
Slide 13: Performance Summary Since IPO
Performance Summary Since IPO Propel’s share price has outperformed the ASX300 since the IPO in November 2017 Relative share price and index performance (23 November 2017 to 31 December 2024) Total shareholder return3 125% Propel ~111.2% 100% +117.4%1 75% Total shareholder value accretion4 ~$494m 50
Slide 14: 3. 1H FY25 Financial Results Detail
3. 1H FY25 Financial Results Detail
Slide 15: Financial Summary
Financial Summary Statutory Income Statement Comments $ million 1H FY25 1H FY24 Revenue Total revenue 115.2 102.9 • Increased 12.0% on the PCP to $115.2m, primarily due to: Gross profit 80.6 71.4 – contributions from 111 acquisitions completed during FY24 and 1H FY25 …margin 70.0% 69.4% – comparable
Slide 16: Revenue Bridge and Operating EBITDA margin
Revenue Bridge and Operating EBITDA margin Revenue growth of ~12%, reflecting acquisition contributions (~8%) and organic growth (~4%) 4.0 115.2 6.8 1.5 $ millions 102.9 1H FY24 Full Period Acquired Organic 1H FY25 Operating EBITDA margin 26.6% 26.0% Comments Total: Organic: Operating EBITDA margin:
Slide 17: Cash Flow
Cash Flow Statutory actuals Comments $ million 1H FY25 1H FY24 Receipts from customers (inc GST) 128.6 113.1 Operating activities Payments to suppliers and employees (inc GST) (101.0) (86.8) • Operating Cash Flow increased 4.7% on 1H FY24 27.6 26.3 • Cash Flow Conversion remained strong at 96.1% Inc
Slide 18: Balance Sheet
Balance Sheet Statutory actuals Comments $ million 31-Dec-24 30-Jun-24 Cash and cash equivalents 6.1 7.3 Cash and net debt position Contract assets 76.0 77.2 • $6.1m of cash (30 June 2024: $7.3m) Other current assets 21.7 18.9 • $130.0m of drawn senior debt (30 June 2024: $113.2m) Total Current Asse
Slide 19: Capital Management
Capital Management Available funding capacity of ~$144 million, significant debt covenant headroom and higher dividends Funding Capacity Dividend summary (cps)5 $ million 1H FY24 1H FY25 Senior debt facility limit 275.0 Fully franked dividend (cps) 7.20 7.40 Dividend payout ratio (rounded) 84% 85% N
Slide 20: 4. Industry Trends and Acquisitions
4. Industry Trends and Acquisitions
Slide 21: Increasing Number of Deaths
Increasing Number of Deaths Number of deaths is the most significant driver of revenue in the death care industry 1 Australia 2 New Zealand 2.4% CAGR 350,000 (2036-2045) 60,000 1.8% CAGR (2036-2045) 2.8% CAGR (2025-2035) 1.8% CAGR 300,000 (2025-2035) 50,000 1.0% CAGR 250,000 (1990-2024) 1.1 % CAGR (
Slide 22: Market Share Estimate (Funeral Volumes)
Market Share Estimate (Funeral Volumes) Propel has increased its market share in the highly fragmented Australian funeral industry 1 CY151 2 CY242 InvoCare InvoCare ~21% ~25% Others ~74% Others ~70% ~1% ~9% 1. Note: 159,052 actual deaths (ABS data) for market size, 1,920 funerals performed by Propel
Slide 23: Acquisitions
Acquisitions Propel completed or announced ~$13 million1 on 3 acquisitions in FY25 YTD (~$302 million1 since its IPO) 1 FY25 YTD acquisitions completed or announced: 1. Decra Jul-24 Christchurch, NZ Consideration: ~$13m Revenue: ~$7m 2. Twentymans Funeral Services Feb-25 Thames, NZ Locations: 9 (3 f
Slide 24: 5. Summary and Outlook
5. Summary and Outlook PROPEL FUNERAL PARTNERS PrP
Slide 25: Summary
Summary Growth track record, proven management team, defensive market position and sector thematic are attractive characteristics 1 Long term growth profile • Strong growth track record (>18 fold increase in Revenue and Operating EBITDA since FY15) • Consistent growth in key operating metrics (funer
Slide 26: Outlook
Outlook Demand for essential funeral services is underpinned by favourable demographics 1 Expected growth drivers for the remainder of FY25: • favourable demographics in Australia and NZ • a strong funding position • acquisitions completed to date and other potential acquisitions in what is a highly
Slide 27: 6. Q&A
6. Q&A PROPEL FUNERAL PARTNERS PrP
Slide 28: Appendices
Appendices PROPEL FUNERAL PARTNERS PrP
Slide 29: Definitions
Definitions Adjusted Effective Tax Rate means income tax expense divided net profit before tax, adjusted for non deductible and non assessable items. Average Effective Interest Rate means the average interest rate on senior debt, including the interest rate swap (where relevant) and establishment fe
Slide 30: Propel's ESG Journey
Propel’s ESG Journey Propel acknowledges the importance of ESG considerations in today’s corporate and social landscape Environmental Social Sustainability Community participation Price Transparency Working towards a more sustainable future: ▪ multi-brand portfolio = meaningful identity within local
Slide 31: Income Statement Analysis
Income Statement Analysis $ million 1H FY25 1H FY24 Comments Funeral operations 101.1 91.7 Cemetery, crematoria and memorial gardens 12.4 10.2 Revenue segments: Other trading revenue 1.7 1.0 • 87.8% generated from funeral operations (1H FY24: 89.2%) Total revenue 115.2 102.9 • 10.8% generated from c
Slide 32: NPAT to Operating NPAT
NPAT to Operating NPAT Reconciliation $ million 1H FY25 1H FY24 Statutory Statutory Statutory net profit after tax 11.8 8.3 Add: Acquisition costs 0.5 1.9 Add: Net other income and expenses 0.2 0.1 Add: Net financing charge on pre-paid contracts 0.1 0.2 Add: Net foreign exchange loss/(gain) 0.1 (0.0
Slide 33: Distributable Earnings and Dividend
Distributable Earnings and Dividend Reconciliation $ million 1H FY25 1H FY24 Statutory Statutory Net profit/(loss) after tax 11.8 8.3 Distributable Earnings calculation Acquisition costs 0.3 1.7 Net financing charge on prepaid contracts 0.1 0.2 Deferred tax adjustment on sale of property (0.2) - Dis
Slide 34: Propel Funeral Partners
PROPEL FUNERAL PARTNERS PrP
Propel Funeral Partners — H1 2025 Earnings Presentation on 6ix