Monash IVF books slight earnings miss,
Monash IVF shares have retreated after it booked full-year earnings slightly below consensus estimates.
Healthcare provider Monash IVF has delivered a full-year earnings figure slightly below consensus estimates despite returning to earnings growth in the second half of the financial year.
Unveiling an annual net profit after tax down 7 per cent to $19.8 million on the prior year, Monash (MVF) told investors on Monday it was well positioned to optimise future earnings, as it progresses expansion of its footprint and undertakes a number of cost management initiatives.
“Strong underlying demand fundamentals for assisted reproductive services remains domestically and abroad,” the company said.
Still, earnings before interest, tax, depreciation and amortisation fell 2.3 per cent for the period to $37.82m, slightly below consensus estimates of $38.45m.
Shares in Monash IVF were down by 3.5 per cent at around 1.30pm (AEST) to 96 cents each.
The share price loss follows a strong rally between May and August this year, the price of Monash shares shooting up more than 45 per cent from $1.05 each in May.
But the share price began to retreat in August on news that five Victorian-based fertility specialists would leave Monash IVF to establish their own clinic.
The company’s Australian business posted a 1.1 per cent decline in full-year revenue, compared to the previous quarter, as growth in South Australia, Queensland and New South Wales failed to offset the loss of activity from the departure of a specialist in Victoria last financial year.
Outside of Victoria, fertility revenue increased by 11.9 per cent.
Meanwhile, revenue in the company’s international business grew 32.3 per cent, supported by the move to the new Kuala Lumpur premises’ in late 2017 and a new fertility specialist who is helping to improve capacity.
The company said that it was working to minimise the financial impact of five Victorian-based fertility specialists exiting the brand, which could hit fiscal year 2020 profit by between $1.5m and $2.5m.
It also said its footprint expansion domestically and through the Asia Pacific region would continue, through the acquisition of new clinics and the recently acquired Fertility Solutions.
Monash IVF declared a fully-franked final dividend of 3 cents per share in line with last year.
The company said it would provide a further update on its fiscal year 2020 performance at its annual general meeting in November.
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