Monash IVF Crashes 18% on Results
Hi, my name is Henry Jennings from Marcus Today. As reporting season this week draws to a close, I thought it would be interesting to have a look at Monash IVF Group and their results this morning, which haven’t been exactly spectacular, to say the least. As William Shakespeare once said, troubles come in battalions – and it looks like we’ve seen some more battalions of troubles coming from Monash IVF today.
Let’s run through the numbers. Revenue growth of 6.7% to $271.9 million. Underlying EBITDA growth of 5.6% to $66.3 million. Delivered underlying NPAT at $27.4 million, down 8.1%, which was in line with the guidance provided back in May 2025.
Part of the problem for Monash has been the issues in some of their IVF clinics in recent months – human error, as the inquiry pointed out. This week some practices have been changed, and they’ve implemented all the recommendations. That’s a tick in the box, but unfortunately the stock is down around 18%. It had run up too much ahead of these results.
We are seeing domestic simulated cycles decrease by 5% in FY25, after a 1.7% fall last year. So there is certainly a slowdown in IVF procedures. The company also announced there would be no final dividend, though it intends to resume dividends in FY26 if it achieves underlying NPAT guidance of $20–23 million.
There are headwinds, and of course the board question as well, with the CEO resigning after the issues in Brisbane and elsewhere. A temporary CEO is in place, but these numbers aren’t going to help shareholder loyalty or optimism.
The stock is down around 18%. The acting Group CEO spoke of a challenging second half given the two adverse clinical events that were reported, and the independent review that came out on 20 August. Management now expects FY26 to be impacted by continued industry weakness and potential fallout from those incidents – a change of tune, having previously suggested they would not.
Monash remains confident about growth prospects beyond FY26. They expect the industry to return to growth in Australia and Southeast Asia and are aiming for mid-to-high single digit growth longer term.
But these numbers are disappointing. At around $0.67, it’s not a good look. Net debt increased by $40.9 million to $89.6 million, with a net debt-to-equity ratio of 35.7% and net leverage of 1.7 times. There is sufficient headroom in banking covenants, but it’s still not a great set of numbers.
Headwinds in the industry and those earlier incidents have clearly hurt. IVF is a high-end retail service, and it may also be suffering from high interest rates and housing affordability pressures – factors that see people delaying children.
So, not a great result. The market is treating it that way. Its biggest competitor is owned by private equity, which raises the possibility of Monash itself becoming a target, but today’s focus is on the negatives. I would expect brokers to downgrade numbers to reflect the new share price, with price targets following it lower.
If you want to catch up on all of reporting season, I’m hosting a webinar on September 17th. Open to everyone, not just Marcus Today members. We’ll run through the season, the themes, the winners, the losers, and the standouts.
It should be an interesting take, especially with the market close to all-time highs. We’ve had the good, the bad, and the ugly – and Monash IVF certainly falls into the bad, bordering on ugly.
Thanks very much for listening. I’ll be back with more from reporting season in due course. In the meantime, don’t forget this is general advice only. Please do your own research and contact your financial adviser regarding any of the thoughts, ideas or insights in this presentation.
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