Invocare says a mild winter a benign flu season may impact its full year results by up to $17 million with funerals down 1.5 per cent is the second quarter of the current financial year. The number of deaths in Australia are down 6 per cent in June to August, compared to 2017, and Invocare estimates the decline is greater in September.
“We indicated at the half year that the number of deaths was lower than trend, but not outside normal year to year fluctuations. However, trading during the winter period has seen the number of deaths decline in the order of up to 8 per cent in key markets. This variation is very unusual and, despite improving market share, there will be an impact on our full year results,” chief executive Martin Earp.
Every 1 per cent decline in deaths equates to $3 million of lost funeral revenue, which means Invocare is looking at a $17 million decline in revenue.