Propel Funeral (ASX:PFP) share price on watch after first quarter update

Two sets of hands clasped, merged and providing comfort.

The Propel Funeral Partners Ltd (ASX: PFP) share price could be a mover on Wednesday. This morning the company released its trading performance for the first quarter of FY22.

Propel Funeral Partners share price on watch as acquisitions kick in

Propel Funeral Partners announced that its performance for the 3 months ended 30 September was materially above the prior corresponding period (pcp). The strong performance demonstrates its resilience despite COVID-19 impacts.

Revenue increased 13% against Q1 FY20, underpinned by a record number of funerals in the quarter.

Total funeral volume growth was 10% above the pcp, including comparable funeral volume growth of 5%.

While the company couldn’t provide exact financial figures, it noted that average revenue per funeral remained resilient and in line with the pcp.

This is despite the impacts of extended lockdowns and strict funeral attendee limits across New South Wales, Victoria, and New Zealand during the quarter.

Propel achieved an operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ~28%.

By comparison, its FY21 full-year results delivered operating EBITDA margins of 30.1%.

The Propel Funeral Partners share price has performed strongly this year following a steady stream of M&A.

Today’s quarterly performance includes contributions from its 3 acquisitions completed during Q2 FY21. It also includes a 2-week contribution from its recently announced acquisition of State of Grace Funerals.

Management commentary

Propel managing director Albin Kurti said:

Propel’s diversified network of funeral and related social infrastructure assets across Australia and in New Zealand has continued to deliver considerable financial resilience in the first quarter of FY22, despite COVID-19 impacts, and I thank our staff for their dedication to providing essential funeral and related services to local communities.

Hopefully extended lock downs, strict funeral attendee limits and travel restrictions will soon be behind us, enabling bereaved client families to grieve in a manner that they ordinarily would, surrounded by family and friends.

Propel Funerals Partners share price snapshot

The Propel Funeral Partners share has performed strongly in 2021, up 50% year to date, closing at $4.28 on Tuesday.

The post Propel Funeral (ASX:PFP) share price on watch after first quarter update appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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