• Defying expectations, Australian funeral numbers have actually fallen during the pandemic.
• The latest results from Australia’s largest funeral operators show funeral numbers have decreased by between 2% and 3% over the last 12 months, and could sink lower still as flu and pneumonia cases plunge.
• Facing severe restrictions on the number of permitted attendees, the cost of funerals has also fallen.
• Visit Business Insider Australia’s homepage for more stories.

In a turn of events few people envisaged, funeral companies have faced significant struggles during the pandemic.

Announcing its full-year results on Tuesday, Propel Funeral Partners, the second-largest funeral operator in Australia and New Zealand, gave a major indication of how death has changed over the past few months.

While funeral stocks quickly bounced after on the arrival of the pandemic to Australia, the reality has been a far more sombre affair.

With business success linked to the quantity and size of funerals, investors who bet the house on an increase of deaths have, ironically, been left disappointed.

Not only did Australia manage to steer itself through the first coronavirus wave with relative success, the measures put in place to do so hamstrung the funeral business as much as they did everyone else

“Funeral attendee limits imposed during FY20 due to COVID-19 affected the company’s ability to offer a full range of services,” Propel noted in its results breakdown.

It was enough to slash nearly $1,000 off the price of the price tags of a funeral, with the average one costing a little shy of $5,000. As attendee limits lifted, so too did prices.

For comparison, just 10 attendees were allowed throughout late March and April in Australia. With the exception of Victoria, the lowest state limit has jumped to 100 attendees in New South Wales, Queensland, South Australia and ACT.

With Australia’s death toll modest compared to other nations, the number of funerals actually fell as well, 2.2% on the 12 months to 30 June.

Meanwhile, established rival Invocare last week reported a 6.2% decline in revenue and 3.2% less, or nearly 800 fewer, funerals.

In part, the pandemic restrictions have actually limited deaths non-correlated to the COVID-19 pandemic. With Australians either asked or compelled to remain home on an unprecedented scale, the number of flu cases fell by 95% this season.

While there’s a significant delay associated with death statistics, the latest ABS figures suggest flu and pneumonia-related were falling in May below historical averages.

“Social distancing, travel restrictions, an increased focus on personal hygiene and effective flu vaccinations have contributed to a benign 2020 flu season to date [and] may result in a deferral of death volumes into future periods,” Propel noted.

In other words, there might be some life in the funeral business yet.

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