, had more than $170 million wiped off its sharemarket capitalisation on Monday after rocky financial markets, higher coffin costs and a labour shortage pushed it to a loss last year.
The group reported a bottom-line loss of $1.8 million after one-off losses from the $600 million in funds invested in property, shares and cash from people who opt to pre-pay for funerals. Operating net profit improved to $50.2 million from $45.1 million a year ago.Chief executive Olivier Chretien said funeral services were unique and in a tougher economy, Australians generally did not want to cut back too far on a proper send-off for their loved ones.
InvoCare, which also operates White Lady Funerals along with a host of state-based brands, struggled to keep up with demand last year, with labour shortages forcing it to turn away some families who wanted to book a specific date. The group had a substantial 14 per cent rise in the costs of caskets, “consumables” and funeral disbursements. Those overall costs were up $18 million in the year to December 31 compared with the previous period.
The company has shifted to a more conservative asset allocation, with its equities exposure cut to 33 per cent last year from 43 per cent a year earlier, and cash and fixed interest rising to 41 per cent from 31 per cent. Property remains steady at 26 per cent.