The Monash IVF Group Ltd (ASX: MVF) share price is 2 per cent lower at $1.06 this morning after the IVF business told investors net profit before irregular items for the year to June 30 2020 would land between $18.5 million to $19 million. This compares to an adjusted net profit of $20.9 million for the fiscal year ended June 30, 2019.
Over the first half of fiscal 2020 the net profit is expected to land between $8.5 million to $9 million. This is partly because $1.5 million to $2 million in net profit will be lost after a group of doctors ceased referring patients to use Monash's IVF services over the period.
At its full year profit report last August the company flagged the potential to lose the doctors and potential profit hit to mean the market has already factored in the problem to the stock's valuation.
Monash will rely on a stronger second half to the fiscal year to meet its profit guidance.
