This high-performing ASX All Ords stock just crashed 12% on its earnings results. Here's why

Investors sent the ASX All Ords stock plunging following its full-year results. But why?

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The All Ordinaries Index (ASX: XAO) is up 0.4% in early afternoon trade, but it's not getting any help from this crashing ASX All Ords stock.

The company in question is Monash IVF Group Ltd (ASX: MVF).

Before market open this morning, shares in the assisted reproductive services provider were up 20% over 12 months.

But those gains are fast fading. At the time of writing, the Monash IVF share price is down 11.7%, trading for $1.25 a share.

This underperformance comes following the release of Monash IVF's financial results for the year ending 30 June (FY 2024).

Here are the highlights.

digitised image of IVF taking place representing Virtus share price

Image source: Getty Images

ASX All Ords stock falls on full-year net loss

  • Revenue of $255 million, up 19.4% from FY 2023
  • Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $62.8 million, up 5% year on year
  • Underlying net profit after tax (NPAT) of $29.9 million, up 17% from FY 2023
  • Reported net loss after tax of $5.9 million
  • Final fully franked dividend of 2.5 cents per share, up 13% from the prior final dividend

What else happened with Monash IVF in FY 2024?

Among the bigger tailwinds hitting the ASX All Ords stock today is the full-year net loss after tax of $5.9 million. Monash IVF noted that this was driven by the estimated $32.6 million loss after tax attributable to the settlement of the NiPGT class action.

The legal action was taken against Monash IVF in 2020, relating to the company's non-invasive pre-implementation genetic screening technology.

Commenting on the class action, Monash IVF CEO Michael Knaap said, "This has been a very challenging and emotional period for all parties, with the mediation and resultant agreed settlement providing financial certainty and allowing all parties to move towards closure."

As for Monash IVF's three businesses – Domestic IVF, Women's Imaging and International ARS – the company reported strong revenue and earnings growth from all three.

Monash also said its market-leading success rates increased by 1.5% to 40.5% over the year.

Management also reported that the major infrastructure transformation the ASX All Ords stock has invested in over recent years is nearing completion. The new Brisbane Clinic is scheduled for completion in the 2025 calendar year.

In other key financial metrics, the company maintained its EBITDA margin at 25%.

Net debt increased by $17.7 million over the 12 months, standing at $48.7 million as at 30 June.

The company's syndicated debt facility was extended to February 2027 and increased from $50 million to $90 million.

What did management say?

Commenting on the results that have failed to boost the ASX All Ords stock today, Knapp said:

Monash IVF Group has delivered a second consecutive year of double-digit revenue and underlying earnings growth, which is a significant achievement given the ongoing cost of living and inflationary pressures impacting the broader macroeconomic environment.

This resilient performance reflects the largely non-discretionary nature of IVF and ultrasound services, combined with the benefits of our geographic diversification, across both Australia and SE Asia…

Our market leading success rates continue to move from strength to strength reflecting our leading-edge science and world class embryology team.

What's next for the ASX All Ords stock?

Looking at what could impact the ASX All Ords stock in the year ahead, Monash IVF said it expects to achieve revenue and underlying NPAT growth in FY 2025 compared to FY 2024.

Knapp noted, "Our diversified revenue base across domestic ARS (presence in all mainland capital cities), ultrasound and SE Asia provides a stable platform for Monash IVF to deliver sustainable revenue and earnings growth."

Monash IVF share price snapshot

With today's big slide in the Monash IVF share price factored in, the ASX All Ords stock remains up 9% over 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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