Propel Funeral Partners, the Australian and New Zealand based operator of funeral homes and crematoria, reported last week that their revenue for the latest 9 month period had been AUS $ 85.0 million ($55.25 m in U.S. $) as compared to AUS $69.9 million (US$ 45.24 m) for the prior year. That is a 22% jump in revenues for the company which owns and operates 129 locations that includes 31 cremation facilities and nine cemeteries.
Nine month operating EBIDTA for the company also jumped an impressive 42% to AUS $ 24.0 million (US$ 15.6 million) in the current year from AUS $16.9 million (US$10.98 million) that was achieved in the first nine-month period of the previous year.
To the date of the report, May 8, COVID-19 deaths in Australia and New Zealand totaled only 118 so Propel Funeral Partners commented that those numbers “did not materially impact the company’s funeral volumes in April 2020.” Propel did say, however, that “restrictions on funeral attendance limited the company’s ability to operate it full range of services and that revenue per funeral in April 2020 actually dropped 10% compared to April 2019.”
The company also stated:
- Total funeral volumes during the period were materially higher than the same period one year ago
- Average Revenue per Funeral for the nine months was within the target range of 2-4% higher than the same period in 2019
- The company disclosed it would continue its acquisition led growth strategy with plenty of funding capacity and AUS $49 (US$ 31.85 m) million of cash at the bank and no near term debt maturities