Finance

Propel Funeral Partners growing market share

This article from Yahoo Finance indicates that Australian and New Zealand public funeral operating company Propel Funeral Partners is growing market share.  According to the article it is growing both from acquisitions and an annual death rate increase in both countries.

Here is an excerpt from that article:

“In Propel’s FY19 investor presentation, the company drew attention to notable industry figures. With death volumes in Australia expected to increase by a rate of 2.4% p.a. until 2026 and 2.1% thereafter until 2050, the industry has an indelible tailwind. New Zealand is a similar story with 1% p.a. growth until 2026 followed by 1.8% until 2050.

However, not only is Propel’s market growing, but the company itself is also growing within it, carving out a larger slice of that growing pie. In fact, between 2015 and 2018, Propel managed to grow its market share over 3.5x from 1.2% to 5.6%.”

Propel Funeral Partners operates 128 locations and is the second largest private provider of death care services in Australia and New Zealand.  According to a company announcement in January 2020, that total includes 31 cremation facilities and nine cemeteries.

During the last half of 2019 the company, according to Reuters, acquired Graham’s Funeral Services in New Zealand for a reported $4.6 million (United States dollars) and acquired the Gregson & Weight Funeral Directors business in Australia for about $24 million (United States dollars).

Reuter’s estimated that the Graham Funeral Services purchase will result in raising Propel’s annual revenues by 2.1% and that the purchase of Gregson & Weight Funeral Directors purchase will increase the company’s annual revenues by about 11%.

Here is the Propel Funeral Partners web-site.

Here is the Graham Funeral Services web-site

Here is the Gregson & Weight Funeral Services web-site

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