He said the two groups had been working closely for nine months and had done extensive market research on the best way to roll it out in Australia. “That’s something we want to test over time,” he said.
He said InvoCare had also been using “smart glasses” worn on the head in Queensland, where an embalming expert in a Brisbane hub was able to guide those in regional areas in real-time through hi-tech connections as they learned new techniques.
InvoCare runs businesses including White Lady Funerals, Simplicity Funerals, Le Pine and Value Cremations. The Australian business experienced record funeral volumes, with an 11 percent rise in operating revenue to $167 million in the six months ended June 30. A return to full-service funerals as COVID-19 restrictions eased helped case average value lift by 4 percent your $8,511.
The group’s earnings before interest and tax was up 10 percent to $44 million, but it suffered a bottomline loss of $16.7 million for the June half because of a downward revaluation of its large pool of $595 million in funds invested in the sharemarket and property when people sign up from pre-paid funerals.
Australia had more deaths than anticipated in the June half in what is known in the profession as “excess deaths”. Experts attribute it to COVID-19 infections exacerbating existing health conditions, but there were also more deaths from heart disease, cerebrovascular disease, diabetes and dementia.
This followed two years of below average death rates despite the COVID-19 pandemic, which many medical experts attribute to tight health restrictions in the early stages of the pandemic as more people stayed at home and wore masks in public. “We protected people,” he said.
Mr Chretien said the “excess” death rate was not uniform across Australia.
UBS analyst Tim Plumbe said it was a “strong result” but growth was below that of the industry and smaller competitor Propel Funeral Partners which generated growth of 10.1 per cent in Australian funeral service volumes. Mr Plumbe said it appeared InvoCare has lost some market share.
Mr Chretien, who has been chief executive since January 2021, said the group would be on the front foot in seeking out acquisition opportunities.
At June 30 its funds under management of $595 million were $51.5 million ahead of future liabilities in pre-paid funerals. The group also said that with the partial rebound of equity markets in the past few weeks, about 40 percent of the decline has already reversed. InvoCare has a conservative approach on its asset allocation, and has 36 percent invested in equities, 28 percent in property and 36 percent in cash and fixed interest.
The company is also generating strong growth in a pet cremation business first established in 2019. Revenues from this business increased 22 per cent to $16.7 million, with the group doing 49,341 pet cremations in the six months ended June 30. InvoCare operates pet cremation operations from 16 locations in five states.