Image source: © Subbotina | Megapixl.com

Highlights

  • Monash IVF is an ASX-listed reproductive and fertility services provider in Australia
  • In FY24, MVF’s revenue increased by 19.4% YoY to AUD 255 million
  • Tribeca Investment Partners Pty Ltd has the highest stake in MVF with a shareholding of ~6.19%

Monash IVF Group Limited (ASX:MVF) is a reproductive and fertility services provider in Australia and is focused on expanding its presence in the South-East Asian market. MVF is committed to innovation and actively supports R&D in reproductive medicine and ultrasound.

In the financial year 2024 (FY24), the company witnessed a 19.4% YoY rise in its revenue to AUD 255 million with a 13.7% YoY jump in underlying EBIT to AUD 43.3 million. During the reported period, MVF’s reported EBITDA dropped by 72.7% YoY to AUD 13.2 million and net loss reached AUD 5.9 million due to the estimated loss of AUD 32.6 million from the NiPGT Class Action settlement, pending court approval.

In FY24, growth in revenue was supported by industry expansion, increased prices, acquisition of PIVET and Fertility North and market share gains. 

Top 10 shareholders of MVF

The top 10 shareholders together have ~33.20% shareholding in the company while the top four shareholders have 21.02% of the shareholding. Tribeca Investment Partners Pty Ltd. and Argo Investments Limited have highest stakes in the company with a shareholding of ~6.19% and ~5.13%, respectively.

Recent business update

In an ASX update on 5 September 2024, MVF announced that it has reached a settlement in the Federal Court case against Insurance Australia Limited. This settlement is anticipated to boost FY25 net profit after tax by AUD 3.6 million.

On 22 August 2024, the company provided an update on its NiPGT class action. The class action, initially announced in December 2020, involved the company's NiPGT technology. The update revealed that the parties have agreed to a settlement of AUD 56 million, pending court approval and a deed of settlement. The settlement will cover all costs and legal fees.

Outlook

In FY25, the company expects to see growth in its revenue and underlying NPAT, despite flat new patient registration in 2HFY24 VS 2HFY23. This growth is expected to be driven by the full-year impact of the recently acquired Fertility North, concluded in March 2024.

The Group also anticipates increased contributions from recently opened day surgeries as theatre utilisation improves, along with benefits from investments in emerging growth drivers like genetics and increased donor activity.

Further growth is expected from the Women’s Imaging business, which has expanded capacity, and continued momentum in international operations, particularly in Singapore and Kuala Lumpur.

Additionally, the Group remains focused on improving margins through its Optimisation and Efficiency program and advancing patient management system enhancements.

Share performance of MVF

MVF shares closed 1.28% higher at AUD 1.19 apiece on 11 September 2024. In the past one year, MVF’s share price has dropped by almost 2.86%, while in the last three months, it has declined by nearly 10.57%.

52-week high of MVF is AUD 1.53, recorded on 24 April 2024 and 52-week low is AUD 1.12, recorded on 5 September 2024.

MVF Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 11 September 2024. The reference data in this report has been partly sourced from REFINITIV.