InvoCare sinks to loss after Covid funeral curbs

InvoCare has swung to a first-half loss after coronavirus restrictions forced simpler, smaller funerals.

InvoCare chief executive Martin Earp. Picture: Lyndon Mechielsen

InvoCare has swung to a first-half loss as customers arranged simpler funerals during COVID-19 restrictions which limited the number of attendees.

The company booked a net after-tax loss of $18 million for the six months through June 30, compared to a net profit after tax of $41.1m the prior year. Operating revenue dropped 6.2 per cent to $226.5 million.

InvoCare declared an interim dividend of 5.5 cents per share, down from 17.5c the prior period.

Still, the company said that since funeral attendance restrictions had been lifted, InvoCare had seen a return to pre-COVID behaviours from its customers.

“I am proud of how the InvoCare team has responded to the COVID pandemic,” chief executive Martin Earp said.

“They have demonstrated ongoing passion and commitment in meeting the needs of all stakeholders which is reflected in the improvement to our net promoter score during this challenging period.

“Innovative new services, capital raising, debt refinancing, new operational procedures to safeguard the safety of our staff and our client families are all clear examples of a business that has responded in an agile manner to adjust to the challenges experienced due to COVID.”

During the first half, InvoCare completed a $274m equity raising with the proceeds having been used to reduce debt and increase liquidity and balance sheet flexibility, during what the company said was an uncertain environment.

The improved balance sheet flexibility will help the company to complete its renovation program and help it to expand its footprint in regional Australia as well as into the pet cremation sector.

“Our renovated funeral homes are performing strongly when compared to our unrenovated sites,” Mr Earp said.

“One of the key issues to arise from this pandemic has been the recognition by families of the important role of funeral services and this gives us confidence to continue upgrading our service offerings to ensure that we meet the changing needs of our client families into the future.”