Covid-19 lockdowns spark baby boom for Monash IVF

The pandemic has brought forward the plans of many Australians to start a family, in what Monash IVF calls a “fundamental shift”.

Senior Monash IVF specialist Dr Kee Ong with six-week-old Oakley. Picture Glenn Hampson

Covid-19 lockdowns are fuelling a surge in people looking to start families, with listed fertility group Monash IVF saying the pandemic had sparked a “fundamental shift”.

It is a baby boom of a different kind, with Monash IVF’s full-year revenue surging 26.3 per cent to $183.6m. Meanwhile net profit more than doubled to $25.5m.

Chief executive Michael Knaap said the group’s stimulated cycles had jumped 36.6 per cent, outstripping the fertility industry’s 31.1 per cent growth rate, as more Australians looked to bring forward their plans to start a family.

“We believe there is a fundamental shift in the community whereby the ongoing 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,” Mr Knaap said.

“This shift is driving industry growth and is expected to continue. With a growing pipeline of new patient inquiries and registrations, we are confident and well placed for sustainable future growth.”

The company experienced a fillip from pent-up demand from elective surgery cancellations early in the pandemic, but it has sustained the boost with IVF cycles having been allowed to continue throughout most lockdowns.

“Notwithstanding ongoing and sporadic Covid-19 related lockdowns, IVF services have been largely undisrupted and as a result, growth continued throughout the year,” Mr Knaap said.

“Market share gains were achieved in Victoria, NSW, Queensland and Northern Territory while the exceptionally high level of market share in South Australia was maintained above 60 per cent.”

Monash IVF shares jumped more than 3.6 per cent to 99 cents during early afternoon trade on Tuesday, compared with the broader share market firming 0.4 per cent.

The trend of filling a home with the pitter patter of little feet has not been confined to humans, with Australians also buying pets, namely dogs, in record numbers, tripling prices in some cases.

For Monash IVF, it comes at a time when the company has managed to recruit five new fertility specialists and convert four trainees to full fertility specialists. It follows five fertility specialists leaving Monash IVF in late 2019, wiping up to $2.5m off net profit last financial year.

“Relationships and engagement with our fertility specialists and sonologists have never been stronger whereby NPS (net promoter) scores (a measure of employee engagement) are at record levels demonstrating a ‘culture of success’,” Mr Knapp said.

The company, however, tapped the federal government for $4.9m in JobKeeper payments to maintain its “workforce during hibernation and recovery periods”. Excluding this payment, net profit rose 61.5 per cent to $23.3m, marginally ahead of the its guidance of $21-23m delivered in February.

Mr Knaap said the “attraction of new fertility specialists” will drive further volume growth in the next 12 months, and the company was “well placed to attract further fertility specialists”. The company has also opened its new flagship Sydney CBD clinic, with plans to open more in the coming year, to capitalise on increased demand for fertility services.

“Subject to an adverse impact from the ongoing Pandemic, the Group is confident revenue and earnings can grow in FY2022. An update will be provided at the 2021 annual general meeting.”

The group will pay a dividend of 2.1 cents a share on October 8.

Originally published as Covid-19 lockdowns spark baby boom for Monash IVF