Propel Funeral Partners' revenue from ordinary activities rose 24.2% to $209.2 million, compared to the previous year's revenue, primarily driven by acquisitions and higher average revenue per funeral, despite a contraction in industry death volumes.
Meanwhile, its operating net profit after tax experienced a modest increase of 1.2%, reaching $21.1 million for the period.
Despite the gains, Propel Funeral Partners reported a decline of 6.3% in its statutory profit after tax, amounting to $17.8 million.
Operating NPAT also experienced an increase, rising 12.2% to $23.4 million.
The decrease was attributed to industry-wide lower death volumes, increased interest expenses, and acquisition-related costs.
"The contraction in industry death volumes, as well as higher interest expenses and acquisition costs, have impacted our bottom line," said Albin Kurti, managing director of Propel Funeral Partners.
"Nevertheless, our strategic acquisitions and constant focus on operational efficiency have contributed positively to our revenue growth," Kurti added.
For shareholders, the company declared a fully franked interim dividend of 7.2 cents per security, paid on April 5, and a final fully franked dividend of 6.9 cents per security, paid on Oct. 3, 2023.
Looking forward, Propel anticipates benefiting from favourable demographic trends in Australia and New Zealand.
The company retains a strong funding position with available capacity for growth initiatives.
Management expects these factors, combined with the integration of recent acquisitions, to drive continued growth in FY25.
At the time of reporting, Propel Funeral Partners’ share price was $5.93.