Monash IVF (ASX: MVF) has posted a solid set of half-year results, demonstrating its ability to navigate industry headwinds while continuing to expand its market share.
Revenue climbed 11.6% to $140.3 million, while underlying EBIT rose 7.3% to $24.1 million. Importantly, the company held its EBITDA margin steady at 25% – no small feat given rising costs and softer IVF demand in some regions. Underlying net profit after tax (NPAT) increased by 5.5% to $15.8 million, in line with guidance, while statutory NPAT was up 33.2% to $17 million Meanwhile, MVF declared an interim dividend of 2.5 cents per share (fully franked), reflecting a balanced approach between rewarding shareholders and managing its cash needs.
While acquisitions have been a key growth driver in recent years, MVF may be nearing the end of this strategy as a primary lever. With the ACCC likely to limit further consolidation, the focus is shifting to three main areas: a recovery in Victoria, international expansion, and cost efficiencies.
What’s Driving IVF Growth In Australia?
IVF demand fluctuated across states, particularly in Victoria, where MVF has significant exposure. Cost-of-living pressures have been a headwind, delaying some treatments, but a rebound in Victoria could provide upside as economic conditions improve. Elective fertility procedures, such as egg freezing, may also return to growth, supporting volumes.
Monash IVF Day Hospitals and Genetic Testing: Expanding Services
MVF’s newly developed day hospitals in Melbourne and on the Gold Coast contributed incremental revenue, while the company’s genetics services, including carrier screenings, gained traction as more patients opt for pre-conception screening.
Monash IVF Asia: KL Fertility Booms, Singapore Ramps Up
MVF’s Kuala Lumpur clinic continues to shine, posting a 12.2% increase in stimulated cycles for the period. In Singapore, the company relocated to a new, larger-capacity clinic in November, which caused some short-term disruption but still saw stimulated cycles grow by nearly 8%. These international clinics are currently operating at only 30–40% capacity, leaving significant room for further growth. Management is expected to provide more insight into its international expansion strategy over the next six months.
Monash IVF Acquisitions: A Key Driver In The Past, But Less So in Future
MVF’s acquisitions have played a crucial role in recent growth, but with regulatory constraints and fewer targets available, its reliance on M&A may be tapering. The numbers tell the story:
- Fertility North (March 2024): Acquired for ~$18 million, contributing $5.2 million in revenue in 1H25. This implies a revenue multiple of ~5.5x and an NPAT multiple of ~36x – suggesting MVF paid a premium for its strategic positioning in WA.
- PIVET & ART Associates Queensland (May 2023): A combined deal worth ~$21.3 million, contributing $8.8 million in revenue. The revenue multiple (~2.4x) and NPAT multiple (~10.7x) suggest this was a far more attractive valuation than Fertility North.
- KL Fertility (Malaysia): While the acquisition cost is undisclosed, KL has been one of MVF’s strongest international performers, with 12.2% cycle growth in 1H FY 2025.
- Older Acquisitions: In FY20, MVF acquired KPJ Johor’s fertility business in Malaysia and took a majority stake in a Tasmanian clinic. While the total cost is unclear, these deals were likely in the $5-10 million range and laid the foundation for MVF’s broader regional expansion.
While acquisitions have been instrumental in getting MVF to this point, future growth will be more dependent on organic expansion, operational efficiency, and capacity utilisation.
Monash IVF’s Balance Sheet: Managing Debt While Expanding
MVF’s net debt rose to $72.5 million (1.3x EBITDA), largely due to settlement payments related to the NiPGT class action. While the company remains within covenant limits, investors will need to watch how debt levels trend in the future.
3 Tailwinds For Monash IVF Shares
1. Short term tailwind: Recovery in Victoria
- Victoria remains MVF’s most significant market, but cost-of-living pressures have weighed on demand.
- A return to elective fertility treatments, such as egg freezing, could drive renewed growth as financial conditions stabilise.
2. Short term tailwind: Cost Efficiencies and Margin Expansion
- Now at scale, MVF is targeting up to 2% EBITDA margin expansion through cost reductions and operational efficiencies.
- With M&A becoming less of a driver, internal optimisation will be a bigger focus.
3. Medium term tailwind: International Growth
- MVF’s clinics in Asia are running at only 30-40% capacity, presenting a major expansion opportunity.
- Singapore’s new high-capacity facility is expected to ramp up, and management has hinted at potential new clinic openings in the next six months.
My Verict on Monash IVF Shares After The H1 FY 2025 Result
MVF has executed well despite industry challenges. It has maintained steady margins and a growing dividend while expanding its geographic footprint. Market share gains, particularly in Western Australia and Southeast Asia, show that its acquisitions have added value.
However, the focus is shifting. With acquisitions largely played out, future growth will come from Victoria’s recovery, international expansion, and internal cost efficiencies. Debt levels, ongoing legal costs, and execution risks remain key factors to monitor, but if economic conditions improve and international clinics scale up, MVF’s long-term outlook remains positive.
Investors should expect a pivot from external expansion to internal optimisation and organic growth. The company has built a strong platform, now it’s about making the most of it.
Disclosure: The author of this article, Patrick Poke owns shares in MVF. The editor of this article Claude Walker does not own shares in MVF. Neither the author nor the editor will trade MVF shares for at least 48 hours following the publication of this article. This article is not intended to form the basis of an investment decision and is not a recommendation. Any statements that are advice under the law are general advice only. The author has not considered your investment objectives or personal situation. Any advice is authorised by Claude Walker (AR 1297632), Authorised Representative of Ethical Investment Advisers Pty Ltd (ABN 26108175819) (AFSL 343937).
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