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.

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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.

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