Yesterday we linked a story at the SMHAGE citing an Invocare profit slip. Now there's news it's stock price is up 12%.
InvoCare Limited (ASX: IVC) is a consumer discretionary company, based out of North Sydney, and provides funeral, cemetery, crematoria, and allied services in Singapore, New Zealand and Australia. It operates around 250 funeral homes, 16 cemeteries and crematoria through various brands. There are numerous other services provided via online platforms such as HeavenAddress, MyGriefAssist, MyMemorial, Funeral Planner, LifeArt coffins, and FuneralAdvice.
InvoCare said that its operating sales revenue grew by 1.4% to $477.3 million, operating EBITDA declined by 4.3% to $119 million (click here to learn what EBITDA means) and operating earnings after tax declined by 22.1% to $49.5 million.
The funeral company said that number of deaths in Australia declined by 3.1% in the 2018 calendar year, however its revenue increased due to the acquisitions that it made during the year.
Operating earnings declined compared to the prior corresponding year because of the depreciation and interest stemming from ‘Protect & Grow’ and acquisitions.
InvoCare’s full year dividend was reduced by 19.6% to 37 cents per share, representing a payout ratio of 82%.
Investors certainly seemed to think so. InvoCare revealed that in the fourth quarter of 2018 and in January 2018 it seems to be pointing towards the market normalising.
InvoCare thinks the investments will deliver sustainable double digit profit growth and in 15 years time there could be 50% more deaths per year due to Australia’s ageing population.
The worst may be over for InvoCare, but the ASX shares in the free report below could grow much faster than InvoCare and therefore may be better choices for a portfolio.