MENU

Virtus Health Ltd reports: Here’s what you need to know

Credit: PerformanceHealth

Shares of in-vitro fertilisation (IVF) provider Virtus Health Ltd (ASX: VRT) have fallen marginally today after the group reported its interim earnings results to the market.

For the six-month period ended 31 December 2015, Virtus reported a 15.4% increase in revenue to $132.2 million, while reported earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 10.3% to $36.2 million – representing an EBITDA margin of 27.4%. Meanwhile, EBIT was 8.1% higher at $30.6 million and net profit rose 7% to $17.9 million.

It was a decent result for the company, especially considering it experienced a drop in market share from 45.7% in the prior year to 44.6% as at the end of the period. Still, it said market cycle volumes in New South Wales, Queensland, Tasmania and Victoria for Assisted Reproductive Services (ARS) had grown 10.2%, while cycle growth in Virtus’ clinics was also 6.2% up on a comparable basis.

While Australian growth was strong, its international clinics also performed well (although Singapore does still remain a headwind for overall group results) and this is great for the company’s long-term growth ambitions.

The diluted earnings per share (EPS) of 22.13 cents may have been a little lower than the market anticipated, although they were still 6.9% higher than the prior corresponding period, with the company declaring a fully franked dividend of 14 cents per share (up from 13 cents in the prior year).

The shares were trading 1.3% lower at $6.24 at the time of writing, and could be worth a closer look for long-term investors.

Our BEST stock idea for 2016 - FREE!

Our top analysts have recently selected their TOP stock idea for 2016, and with share prices falling, it could be the BEST time to buy! This relatively unknown technology share is growing rapidly and offers a fat, fully franked dividend! Best of all: their top stock idea for 2016 is yours FREE! Just click here, enter your email address and claim your free report - no payment or credit card required!

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.