Riding the tailwinds of the pandemic which has led to a fundamental shift in family planning and wellness, fertility experts Monash IVF (ASX: MVF) have reported a raft of new business for their reproductive services which resulted in a 117% increase in profit as demand for IVF has surged.
Reporting their FY21 results, Monash IVF delivered a 26.3% increase in revenue to $183.6m for the year while NPAT was $25.5m which represented a 116.9% increase on the previous year.
When adjusting the NPAT to exclude Job Keeper Subsidies in FY21, commissioning costs associated with the new Sydney CBD fertility clinic and adjustments to Business Combination earn-out provisions, Adjusted NPAT came in at $23.3m, a 61.5% increase on the previous year.
“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,” said Monash IVF CEO, Michael Knapp.
“With a growing pipeline of new patient enquiries and registrations, we are confident and well placed for sustainable future 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.”
Amid the onset of COVID-19, more time spent at home with loved ones has resulted in additional reflection on family planning. This was evidenced by wider industry growth which led to a 31.6% increase in Stimulated Cycles (STIMS) where Monash IVF outperformed the industry to increase their STIMS by 36.6% from their Australian operations.
Internationally, the Company saw a 25.1% increase in STIMS with their fertility services in South East Asia nearing a return to pre-COVID levels but still lagging due to lockdown in Malaysia.
Riding this fundamental shift in Australian families which was catalysed by the pandemic, Monash IVF has flagged a number of new initiatives that will propel the business further. These include new projects in Melbourne, Gold Coast and Penrith, as well as expansion of their genetics services to soon offer patients with commercialised reproductive genetic screening kits. These new kits will allow couples to identify potential genetic conditions in children prior to conception.
Following the release of their FY21 results, MVF shares reached a 2-year high of $1.025, a 7.3% increase on their previous $0.955 close.
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