Monash IVF shares plummet amid weaker outlook
Make us a preferred source
Make us a preferred source on Google
More news: Monash IVF shares plunged in afternoon trade after the fertility clinic provider reported a weaker-than-expected EBIT margin and FY26 guidance as well as a fall in market share.
At 12:17pm AEST, Monash IVF shares had slipped 10.6% to 72 cents per share, with the stock down 42.9% in the year to date.
RBC Capital Markets analyst Craig Wong-Pan said: “Given the weaker EBIT margin, loss of market share, net reduction in fertility specialists and disappointing FY26 guidance we expect the stock to underperform the market today”.
Wong-Pan added that the company’s NPAT guidance for FY26 of between $20 million and $23 million came in below the market consensus expectation of around $26.4 million, according to Visible Alpha.
He also highlighted that “MVF looks to have lost share in Australian stimulated cycles in 2H25 and have also had a reduction in net fertility specialists in 2H25”.
Monash IVF swings to full-year profit, board declares no dividend
The news: Fertility clinic provider Monash IVF has delivered full-year net profit of $25.7 million after facing a $5.9 million loss in FY24 when a class action was settled.
The numbers: The profit figure for FY25 is behind the market consensus estimate of $28.9 million, according to Visible Alpha.
However, underlying net profit after tax fell by 8.1% year on year to $27.4 million, reflecting a lower volume of procedures undertaken.
Revenue meanwhile came in at $271.92 million, 6.7% higher than the $255 million in the previous year and ahead of the market consensus estimate of $268.8 million.
No final FY25 dividend was declared with the board intending to resume dividends in FY26, so long as the company meets guidance. The consensus expectation was for 2 cents per share.
FY26 guidance for underlying NPAT is in the range $20 million and $23 million.
The context: Monash IVF domestic stimulated cycles fell by 5%, compared to a 1.7% decrease across the Australian industry. For international stimulated cycles the fall was 6.4%, with the decrease "largely due to macro conditions". Ultrasound scan volumes also decreased by 0.4%.
Monash IVF acting CEO Malik Jainudeen flagged that the company faced a "challenging second half given the two adverse clinical incidents that were reported and in the context of a weaker ART Sector in Australia and Southeast Asia".
While industry weakness and "potential impact from the incidents" is expected to continue in FY26, Jainudeen is "confident about Monash IVF's growth prospects beyond FY26".
The company announced it had completed its review into two incorrect embryo transfer incidences that were revealed this year on Wednesday.
According to an announcement at the time, the review blamed "human error at multiple stages and IT system limitations in the very limited circumstances of an embryo transfer to a partner", which made the subsequent processes "more vulnerable to human error".
The review will not be made public but a copy has been provided to the Victorian Department of Health. It will also be provided to the Queensland Department of Health and the Reproductive Technology Accreditation Committee that regulates IVF in Australia and New Zealand.
