Klepsydra Group has published strong financial results for the first half of 2024, confirming the effectiveness of its growth strategy. The group’s companies generated nearly PLN 21.1 million in revenue during this period, representing a 24% increase compared to H1 2023, while EBITDA reached PLN 4.6 million, an increase of nearly 16% year-over-year.
The number of services provided by Klepsydra Group also grew in H1 2024. The group conducted a total of 1,568 funerals (compared to 1,358 in H1 2023), 4,311 cremations (compared to 4,219 in H1 2023), and handled 301 international repatriations of the deceased (down from 320 in H1 2023).
It is important to note that these results were achieved in a declining market, which, according to Klepsydra Group’s forecasts, is stabilizing after the significant growth driven by the pandemic. The market saw an average decline of 2.3% in H1 2024. Data from Poland’s Central Statistical Office (GUS) indicates that mortality rates in Poland will steadily rise over the next 20 years, suggesting favorable conditions for the company’s future growth.
Key Events of Q2 2024:
- Signing an investment agreement and completing the acquisition of PUK USKOM from Szczecin, marking the sixth funeral company to join the capital group.
- Management changes at PUK Kraków, including the appointment of a new management board and supervisory board.
- Ongoing consolidation of newly acquired companies and further pursuit of acquisition opportunities.
“The second quarter of 2024, as well as the entire first half of the year, has been an intensive period for us. This has involved not only the continued development of Klepsydra Group and the integration of new companies but also the execution of another acquisition. We are pleased to welcome our sixth funeral company, PUK USKOM from Szczecin, which marks our debut in a new market. Our strategy is based on consolidating the Polish funeral market, and further acquisitions are just a matter of time. The growth in our financial results for the first half of the year reflects not only the company’s organic development and strength but also the impact of acquired companies,” said Marek Cichewicz, CEO of Klepsydra Group S.A.
FINANCIAL RESULTS
Klepsydra Group is currently focused on implementing its development strategy, which is centered on consolidating the fragmented funeral market in Poland. The group continues to deliver strong financial results. Its modern business model, which includes comprehensive services, its own infrastructure, high-quality customer service, and the ongoing expansion of the capital group, will drive future growth.
Below is a table summarizing Klepsydra Group’s financial results:
| PLN million | H1 2024 | H1 2023 | Change (%) |
|---|---|---|---|
| Revenue | 21.1 | 17.1 | 24.0% |
| EBITDA | 4.6 | 4.0 | 15.6% |
The financial results are presented in accordance with PSR standards.
*For informational purposes, the financial data for 2023 have been prepared under the assumption that all revenues and costs of Klepsydra Group companies, including PUK, have been consolidated since January 1, 2023.*
When analyzing the consolidated financial results, it is important to consider that, according to Polish Accounting Standards, Klepsydra Group is required to amortize the value of acquired companies over the next 20 years. This amortization is an accounting procedure that does not directly affect the company’s cash flow. It represents the allocation of costs related to intangible assets over time rather than an actual cash outflow. Amortization reduces net profit and operating profit in the consolidated financial statements but does not decrease the actual cash available to the company, which is crucial for assessing Klepsydra Group’s financial health and strategic plans (market consolidation).
As of June 30, 2024, the amortization of acquired companies amounted to PLN 1.094 million and will increase with each subsequent acquisition. Additionally, the net and operating profit figures were impacted by the costs of the holding company’s operations over the six months of H1 2024. In contrast, there were no such costs for most of H1 2023, as the holding group was not fully operational yet. Future years should offer more comparable results in this regard.
Considering the adjustments related to the amortization of acquired companies and the holding company’s operations, the net profit for H1 2024 would have been PLN 2.5 million, while the operating profit would have been PLN 2.8 million.
DIVIDEND-PAYING COMPANY
According to the published strategy, Klepsydra Group intends to join the ranks of companies that regularly pay dividends to investors. In line with its dividend policy, the group plans to distribute up to 20% of net profit to investors starting in 2024. The first dividend payout is expected in 2025 (based on the 2024 net profit).
FUTURE MARKET WILL SUPPORT THE GROUP’S GROWTH
The market is continuing to stabilize at pre-pandemic levels. In H1 2024, the market declined by only 2.3% compared to the same period in 2023. The best-performing local market within the group’s geographical structure was the Bydgoszcz-Toruń region, where SOTOR operates.
Data from GUS indicates that over the next 20 years, the mortality rate will steadily increase, potentially reaching 500,000 deaths per year by 2046. This is due to the growing number of people aged 65 and over, and from 2025, the large post-war baby boom generation will begin to reach old age (80 years and older).
Source: Manager Plus
