Finance

Sales, profits drop at Matthews International

Last week Matthews International, a multi-faceted United States public company based in Pittsburgh, Pennsylvania, reported 3rd Quarter results for their fiscal year which will end on September 30.  The 3rd Quarter results are for the period ended June 30 and you can read the Matthews press release about the financial report for the 3rd Quarter here.

Of interest to those of us in the death care industry is that Matthews is the parent company of Matthews Cremation, Star Granite and Bronze, and Aurora Casket.

The company reported total sales for their 3rd quarter of $379.2 million as compared to sales for the same period in 2018 of $411.6 million — that’s a decrease of almost 8%.  For the nine months ended June 30 Matthews reported total sales of $1.144 billion in 2019 as compared to $1.195 billion in 2018 — a drop of 4.2%.

Profits have also been affected as Operating Profits for the quarter were 24.5% lower than 3Q 2018 at $29.6 million and for the nine months ended June 30 Operating Profits are at $70.1 million as compared to $89.8 million for the same period of 2018 — that’s a drop of 22%.

As for the Memorialization segment of the company. . .sales for the 3rd quarter of 2019 were $158.2 million compared to $162.0 million in last year’s 3Q.  According to the release, “The decrease primarily reflected the impact of an estimated decline in U.S. casketed deaths.  In addition, fiscal 2019 sales for the Memorialization segment were unfavorably impacted by the divestiture of a controlling interest in the pet cremation business.”

For the nine months ended June 30, Memorialization segment sales were virtually flat. . . .$474.2 million in 2019 as compared to $475.5 million in 2018.  During the past year, however, we have noticed how the Memorialization segment has increased its percentage of total company sales to 41.4% as compared to last year’s nine months 39.7%.

You can access a slide presentation on Matthews International’s 3Q results here.

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