Monash IVF (ASX:MVF) share price up 3% on guidance beating profits

The ASX healthcare share delivered its full year financial results this morning.

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The Monash IVF Group Ltd (ASX: MVF) share price is gaining in intraday trade, up 3% to 99 cents per share.

This follows on the release of the reproductive services provider's results for the 2021 financial year ending 30 June (FY21).

Monash IVF share price gains on FY21 results

  • Revenue of $183.6 million, increased 26.3% from $145.4 million in FY20
  • Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37.1% to $47.7 million
  • Adjusted net profits after tax (NPAT) increased 61.5% to $23.3 million, beating guidance of $21-23 million
  • Reported NPAT increased 16.9% to $25.5 million
  • $32.8 million of Free Cash Flow generation

What happened during the reporting period for Monash IVF?

Over the course of the 2021 financial year, Monash IVF reported a 36.6% increase in the number of its Australian Stimulated Cycles (STIMS). It attributed much of this to broader industry growth as well as the company making some market share gains.

Internationally its STIMS numbers reached 208 cycles, up 25.1% year-on-year.

Ultrasound scan volumes also performed strongly compared to FY20, increasing by 12.9%.

Monash IVF also opened its flagship clinic in Sydney and appointed 5 Fertility Specialists and a Medical Director of Genetics. The company flagged additional new clinics opening in FY22.

The company said that the first quarter of the financial year saw it servicing the pent-up demand from deferred IVF treatments, which had been temporarily suspended during the early COVID lockdowns.

What did management say?

Commenting on the results, Monash IVF's CEO, Michael Knaap said:

Our FY21 financial performance was strong and ahead of market expectations and was driven not just by strong industry growth, but also through implementing our own growth initiatives to increase our market share and build for future sustainable growth…

We believe there is a fundamental shift in the community whereby the on-going Pandemic has changed the mindset of our patient cohort, leading to greater focus on family, health and wellbeing and resulting in re-direction of priorities towards family extension. This shift is driving industry growth and is expected to continue.

Knapp said the company has improved its clinical pregnancy rates by 4.5% since 2018, "following a huge amount of effort put into improving outcomes for our patients including harmonisation of laboratory protocols and new innovation".

What's next for Monash IVF?

Monash IVF said its strong balance sheet puts it in a good position to get through the ongoing pandemic, as well as optimising "future earnings through strategic and operational gains" made during the past financial year.

Based on there being no major increase in adverse impacts from the pandemic, management is "confident" the company can grow revenue and earnings in FY22.

Knapp said, "With a growing pipeline of new patient enquiries and registrations, we are confident and well placed for sustainable future growth."

The Monash IVF share price is up 68% over the past 12 months.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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