Monash IVF share price drops 10% on annual result

The Monash IVF share price is 10% lower after the company released its annual result for the year to 30 June 2020. We take a closer look.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Monash IVF Group Ltd (ASX: MVF) share price has fallen lower this morning, down 9.95% at the time of writing to 57 cents. The fall in the Monash IVF share price came after the company released its annual result for the year to 30 June 2020.

wooden blocks printed with the letters IVF signifying Monash IVF share price

Image source: Getty Images

What was in the announcement?

The company had revenue of $154.4 million in the 2020 financial year, this was down 4.3% compared to revenue received during the prior financial year. According to the company, revenue was impacted by the disruption created by coronavirus and the departure of fertility specialists in Victoria. 

Monash IVF reported net profit after tax of $11.7 million in the 2020 financial year; this was down 40.9% when compared to net profit after tax of $19.9 million earned in the 2019 financial year. The company stated that there was an adverse impact to net profit after tax of $3.9 million during March to June when compared to the prior corresponding period. According to the company, this was due to the coronavirus shut down. 

Adjusted net profit after tax, which excluded irregular items, was $14.4 million, according to the company this was above previous guidance of $14 million released in June. 

Earnings before interest, tax, depreciation and amortisation (EBITDA) were $32.8 million. This compared to EBITDA of $37.2 million in the previous financial year.

The company reported that its balance sheet was strong and allowed for investment into future growth including a Sydney CBD clinic and partnerships in South East Asia. 

Monash IVF treated 14,894 patients in the 2020 financial year, this was down 7.2% compared to the number of patients treated during the 2019 financial year. Total Australian patient treatments were 13,149 in the 2020 financial year, a drop of 5.6% compared to the 2019 financial year.

The company commented on the result and its current outlook, stating;

"Whilst COVID-19 has disrupted operations since March 2020, the Group is well positioned to grow earnings going into FY21 with strong recovery in June and July 2020 across all markets with increased marketing investment." 

About the Monash IVF share price

Monash IVF provides IVF and fertility solutions. It operates in Australia and Asia and has been listed on the ASX since 2014.

In May 2020, Monash IVF raised $80 million from investors. This was via a retail entitlement offer and a placement to sophisticated and institutional investors. The issue price was 52 cents per share.

The Monash IVF share price is up 62.9% from its 52 week low of 35 cents, however, it is down 41.2% since the beginning of the year. The Monash IVF share price is down 36.7% since this time last year.

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Market News

5 things to watch on the ASX 200 on Monday

It looks set to be a tough start to the week for Aussie investors.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Broker Notes

2 ASX shares Morgans thinks are worth gobbling up right now

The broker sees big upside for these stocks.

Read more »

A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising
Broker Notes

Bell Potter says these ASX 200 stocks could rise 50%+

The broker has good things to say about these stocks.

Read more »

A smiling woman holds a Facebook like sign above her head.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

fire man running on lava
Share Market News

ASX 200 energy shares lead the market for a third week

Energy shares have risen 16.21% while the ASX 200 has lost 8.37% since the war in Iran began.

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Share Market News

These ASX 200 shares could rise 40% to 60%

Morgans thinks these shares could deliver big returns over the next 12 months.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Opinions

Why buying ASX shares in March could supercharge your wealth

I think there are opportunities galore right now.

Read more »

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.
Share Market News

Why these Vanguard ETFs could be best buys in 2026

From global markets to emerging Asia, these Vanguard ETFs provide diversified exposure for investors in 2026.

Read more »