A strong uptick in patient registrations from the LGBT+ community for reproductive services has seen a healthy upswing in revenue for Monash IVF (ASX: MVF) which has seen no impact to its business despite a major pullback in discretionary spending across the country.
The Company’s Half Year results for the period ended 31 December 2023 underscored its robust performance. Revenue surged by 21.7% to $125.7 million compared to the same period the previous year, while underlying Group NPAT and EBITDA increased by 18.7% and 20.0% respectively. These figures mark the second consecutive Half of substantial growth, reflecting the strong demand for Monash IVF’s services at a time when interest rate rises have put major limitations on spending among young families – the typical target market for Monash IVF.
One of the key highlights of Monash IVF’s recent success has been its appeal to the LGBT+ community, which has increasingly turned to the organisation for reproductive assistance. This surge in registrations aligns with broader trends in Australia, where more families are seeking assisted reproductive services. Factors such as delayed childbearing, lifestyle choices, and fertility challenges have contributed to a growing reliance on technologies like IVF to conceive.
Monash IVF’s domestic operations have been a major driver of its success, with notable achievements including an increase in stimulated cycles and market share growth across multiple Australian states. The acquisition of Fertility North in Perth further solidifies the company’s position as a leader in the fertility space. Additionally, the successful integration of PIVET Medical Centre and ongoing infrastructure improvements underscore Monash IVF’s commitment to enhancing its services and expanding its presence.
While the company’s international segment experienced some challenges, particularly in Kuala Lumpur due to industry weakness and competitive pressures, positive growth in Singapore and Johor Bahru indicates promising opportunities for expansion in South-East Asia.
Michael Knaap, CEO and Managing Director of Monash IVF, expressed optimism about the company’s future prospects.
“The Medicare rebate supporting genetic carrier screening was introduced in November 2023, which has resulted in a strong increase in our carrier screening testing volumes, which will continue to build as patient awareness increases.
“We believe the provision of high quality genetic testing is a complementary service to our premium IVF offering, as a further tool to give our patients the best opportunity of conceiving a healthy baby.”
He highlighted the non-discretionary nature of IVF services, emphasising their time-critical nature, which mitigates the impact of economic uncertainties. Knaap also noted the company’s focus on attracting new specialists and evolving its offerings to meet the evolving needs of patients.
Looking ahead, Monash IVF anticipates continued growth fueled by various factors including the full-year contribution from recent acquisitions, the addition of new fertility specialists, and advancements in reproductive genetic screening. The company remains committed to delivering high-quality care while expanding its footprint both domestically and internationally.
“We are on a positive trajectory heading into the second half, with new patient registrations indicating domestic growth will continue, and the benefits of recent infrastructure investments will contribute positively to profit,” added Knapp.
“Furthermore, performance of KL Fertility and Singapore are showing positive signs, which should lead to growth in our International segment”
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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