- Monash IVF Group (MVF) has seen a positive recovery in its Australian operations since COVID-19 restrictions have eased
- The company opened its IVF treatments on April 27 and stimulated cycles are up 25 per cent on the prior corresponding period
- In the last two months, Monash has seen early signs of a new patient pipeline
- However, the company is expecting a financial hit
- Monash expects its 2020 second-half net profit after tax (NPAT) to be 55 per cent lower at $4.6 million, compared to the end of FY19
- Monash is down 4.46 per cent at market close and is selling shares for 53.5 cents each
Monash IVF Group (MVF) has seen early signs of a positive recovery from its Australian business as COVID-19 lockdown restrictions have started to ease.
In Australia, the company recommenced IVF treatments on April 27. Compared to the previous corresponding period (pcp) and pre-COVID-19 levels, Monash has seen positive growth across Australia. Its stimulated cycles are up by approximately 25 per cent pcp.
During May and June, the company has also been encouraged by early signs of the new patient pipeline which has returned to what it was pre-coronavirus.
However, the company remains cautious of the uncertain future impact of COVID-19 on the 2020 financial year as well as FY2021.
Monash’s Women’s Ultrasound businesses remained open throughout the lockdown but the amount of scans were moderately impacted by the virus.
“Whilst volumes were only moderately impacted, strict infection control and hygiene measures has increased the service costs required to perform ultrasound scans in a safe environment,” the company said.
The Malaysian IVF business continues to be impacted by the Movement Control Order, which was eased on June 9.
Restrictions have eased and the business is now open but not at what it was pre-COVID-19.
FY20 profit guidance
The company is expecting a 2020 second-half net profit after tax (NPAT) of $4.6 million, which is 55 per cent down on this time last year due to COVID-19 disruptions.
The full NPAT is expected to be approximately $14 million.
The 2020 financial year results will be released to the ASX on August 24.
Company shares have dropped 4.46 per cent at market close to sell shares for 53.5 cents each.