In a year impacted by the ongoing COVID-19 pandemic, coupled with other global macro disruptions and challenges, Monash IVF Group delivered revenue growth of 4.7% and underlying NPAT of $22.2m. We successfully navigated multiple disruptors whilst maintaining our market focus and momentum. We have continued to make significant investments in doctor partnerships, clinical infrastructure, genetics and science, and our business is in a strong financial position to deliver sustainable long-term growth.

Strong underlying market dynamics remain unchanged despite a year of disruptions and short-term volatility.

In FY22 the Australian IVF market recorded a decrease in stimulated cycles of 1.1%, with Monash IVF Group performing ahead of market, recording market share growth of 20bp to 21.2%.

The extended COVID-19 lockdowns in 1H22 meant people were spending most of their time at home with their families, making it the ideal time to think about starting or expanding families. Pregnancy rates continued to increase, and IVF growth rates were strong during 1H22.

However, as COVID-19 became more widespread in the community in 2H22, the IVF industry faced significant disruptions from workforce shortages and patients being forced to delay treatment following COVID-19 infection. Furthermore, as international borders reopened, a strong urge to travel saw many Australians recommence travel and holidays.

This short-term lag in market growth in 2H22 does not reflect any changing consumer sentiment towards IVF, yet reflects short-term impacts of COVID-19.

The Australian IVF industry has experienced remarkable growth over the last three years, delivering a three-year CAGR (Compound Annual Growth Rate) in Stimulated Cycles of 7%.

Our Australian IVF business delivered a robust result in FY22, with stimulated cycles in line with FY21 and EBITDA growth of 6.9%. Performance was particularly strong in New South Wales, Queensland and South Australia.

Our ultrasound business was disrupted by COVID-19 and influenza during FY22. Volumes declined due to sonographer and workforce shortages, and reluctance of patients to attend healthcare settings. We are confident that this business will have strong tailwinds as the recent challenges subside.

Our Malaysian business has had a longer road to recovery post the initial COVID shutdowns with demand for IVF services restricted by reduced movement and travel and a weak economic environment. However, early signs of improvement were evident in 2H22 with a 23% increase in new patient consultations.

Despite some volatility in market growth in 2H22, underlying demand for IVF services remains strong and resilient.

Monash IVF’s ability to on-board and attract more fertility specialists and execute on compelling acquisitions reflects our leading reputation in the market for our best-in-class service model and compelling doctor value proposition, combined with the strength and engagement of our existing doctor group. Monash IVF Group is now considered the destination of choice for clinicians.

As we look towards FY23 and beyond, we remain confident that we have the right people, the right priorities and more importantly the commitment of our people to maintain a strong financial position and deliver shareholder value.

The Board and I would like to acknowledge and thank our people and clinicians for their dedicated commitment to the business, together with our patients and our shareholders for their ongoing support of Monash IVF Group.

Mr Richard Davis
Independent Chairman