Monash IVF Group (MVF) H2 2024 earnings summary

Executive summary

• Reported a net loss after tax of AUD 5.9 million due to a AUD 32.6 million post-tax impact from a class action settlement, but underlying NPAT was AUD 29.9 million, in line with guidance, with revenue up 19.4% year-over-year to AUD 255.0 million.

• Underlying EBITDA rose 17.5% to AUD 62.8 million, with a stable EBITDA margin of 25%.

• Strong operating cash flow conversion at 104% and a fully franked final dividend of AUD 0.025 per share declared.

• All business segments, including Domestic ARS, Ultrasound, and International, delivered robust growth, with international operations rebounding strongly in the second half.

• Clinical success rates improved by 1.5% over the last year, and market share in Australia increased by 1.5% to 21.7%.

Financial highlights

• Revenue grew 20% year-over-year, with 7% from domestic IVF (excluding acquisitions), 5% from price increases, and 2% from market share and industry growth.

• Acquisitions contributed 6% to revenue growth, with PIVET and Fertility North adding significant impact.

• International business revenue in the second half was 24% higher than the first half, led by Singapore (cycles up 80%) and KL (cycles up 8%).

• Ultrasound business scan growth was 3.9%, contributing AUD 3 million to revenue.

• Free cash flow improved to AUD 13.7 million from negative AUD 1.4 million in FY23.

Outlook and guidance

• Anticipates revenue and underlying NPAT growth in FY 2025, with growth drivers including full-year contribution from Fertility North, new fertility specialists, increased day surgery utilization, genetics, and international momentum.

• Ongoing focus on margin improvement through optimization and efficiency programs, and enhancements to patient management systems.

• No specific quantitative guidance provided; further updates expected at the AGM in November.