Calgro M3 is seeing sustained growth in demand within its memorial parks business as more households plan burial arrangements well in advance, reinforcing the segment’s role as a stable contributor to group earnings. The company reports that demand for premium burial plots remains firm, reflecting a broader shift towards private memorial parks that offer security, maintenance and landscaped environments.
According to Business Day, the memorial parks segment contributed 8% of Calgro M3’s group revenue in the 2025 financial year, doubling its share from the previous year. While ash-related products and other niche memorial offerings accounted for less than 10% of total revenue, the memorial parks division continues to generate sufficient annuity income to cover all group overheads, underscoring its strategic importance to the business.
The company attributes the increase in revenue contribution to consistent demand for burial reservations and interments, supported by families seeking certainty around long-term burial arrangements. This trend has been strengthened by urbanisation and land scarcity in major metros, which have constrained space in traditional municipal cemeteries. Data from Statistics South Africa shows that South Africa records more than 450,000 deaths annually, a figure that continues to underpin steady demand for burial and cremation services across income groups.
Calgro M3 has responded by expanding its memorial park footprint and improving service quality through targeted capital investment. The group plans to launch Platinum City Memorial Park in Rustenburg in the second half of the 2026 financial year, adding capacity in a region with limited private burial infrastructure. Management views this expansion as central to consolidating its market position and unlocking further annuity-style revenue streams.
Despite the strength of the memorial parks business, the group has faced near-term earnings pressure. Headline earnings per share for the half year declined by close to 18%, largely due to capital being redirected towards the Bankenveld District City development. This reallocation constrained revenue and profit growth in the short term and contributed to weaker investor sentiment, with Calgro M3’s share price falling by more than 25% during 2025.
The company nevertheless sees considerable room for growth, particularly in cremations and interments, where its current market share remains modest. Industry analysis from PwC South Africa indicates that the local funeral and burial services market continues to expand steadily, driven by population growth and increasing demand for professionally managed memorial facilities, creating opportunities for operators with scale and access to land.
To capitalise on this, Calgro M3 plans to increase reservation sales, grow its active lay-by book and develop additional memorial parks to deliver predictable cash flows. The strategy also includes investing in new sections within existing parks, refining pricing structures and adjusting product offerings to reflect changing consumer preferences.
The group expects a combination of new products, partnerships and targeted marketing to support continued growth in the memorial parks division. While broader property market conditions remain challenging, Calgro M3 views its memorial parks business as a defensive and resilient component of the group, capable of sustaining earnings and reinforcing its position within a specialised segment of the property market.