InvoCare (ASX: IVC)

InvoCare (ASX: IVC) Operates funeral homes, cemeteries and crematoria

2001

FOUNDED

SMALL

SIZE

CONSUMER SERVICES

Industry

Product / Service

  • InvoCare operates 270 funeral homes under a variety of brands:

    • Australia - includes White Lady Funerals and Simplicity Funerals

    • New Zealand - 19 funeral home brands

    • Singapore - 2 funeral homes

  • InvoCare owns and operates 14 cemeteries and crematoria in New South Wales and Queensland, 1 crematorium in the USA and 1 cemetery in New Zealand

  • InvoCare ensures that each cemetery and crematorium is responsive to the needs of a multi-cultural society, especially as the demographics of communities change. Examples include Asian sections designed with feng shui advisors and outstanding crypts, vaults and family mausoleums preferred by many European cultures

  • InvoCare offers a number of funeral related businesses and services:

    • Online memorials through HeavenAddress - a permanent online memorial community

    • LifeArt Australasia - personally designed coffins

    • Guardian Plan - prepaid funeral plans, providing families with emotional and financial peace of mind

    • Funeral Planner - a digital tool to help plan a funeral

  • Due to prepaid funeral plans, InvoCare has a sum of funds under management which it invests in shares, property and fixed interest

  • InvoCare cites its key drivers of revenue and earnings growth as the following:

    • Favourable demographics, i.e. more deaths due to an ageing population

    • Consistent annual pricing increases of around 3-4%

    • Improving market share

    • Increasing sales of prepaid funeral contracts

    • New locations and acquiring centres

    • Reducing costs and improving operating efficiency

History

  • In the 1990s, Service Corporation International (SCI) and Stewart Enterprises, two large American owned funeral companies, entered Australia

  • The two companies acquired a number of funeral homes, with SCI focussing on NSW and Stewart Enterprises focussing on Queensland

  • Due to a backlash against ‘Americanising’ a number of the acquired funeral homes and negativity towards large corporations owning the industry, SCI and Stewart subsequently left Australia

  • Stewart Enterprises was sold and became Bledisloe Holdings

  • In 2001, InvoCare was founded as part of a divestment of SCI to a consortium led by Macquarie Bank, which subsequently floated InvoCare on the ASX in December 2003

  • In 2010, InvoCare purchased Bledisloe Holdings which had grown to become New Zealand’s largest provider of funeral services, as well as maintaining its presence in Queensland

  • InvoCare expanded into the USA in 2015 but subsequently decided to close the USA funeral operations, keeping the crematorium operations

Customers

  • InvoCare’s customers are people who prepay funeral plans and families of the recently deceased

Operations

  • The company is headquartered in Sydney

  • The company’s operations are in Australia, New Zealand, Singapore and the USA

To be known around the world as the people who excel at honouring, celebrating and memorialising a loved one

Profitability Table

Year Revenue ($m) % change EBT ($m) % change
CY 2009 256 4.7 67.3 73.6
CY 2010 267 4.6 37.8 (43.8)
CY 2011 321 20.1 39.1 3.5
CY 2012 369 14.8 62.6 60.1
CY 2013 385 4.5 68.0 8.7
CY 2014 413 7.2 77.3 13.6
CY 2015 436 5.7 81.7 5.8
CY 2016 451 3.3 100 22.8

Fun Facts

  • Martin Earp’s (CEO) total remuneration for CY 2016 was $1.6m

  • InvoCare’s name comes from Innovation, Vocation and Care

  • There are around 150,000 deaths per year in Australia. Due to an increasing and ageing population, the number of deaths increases around 1.5%

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