Monash IVF Faces Margin Pressure and Volume Declines Despite FY25 Gains

Financial Performance Amidst Sector Headwinds

Monash IVF Group delivered a respectable financial performance in FY25, with revenue climbing 6.7% to $271.9 million and underlying EBITDA rising 5.6% to $66.3 million. The underlying net profit after tax (NPAT) of $27.4 million aligned with prior guidance, reflecting resilience in a challenging fertility services market. However, the second half of the year saw a softening in sector demand across Australia and South-East Asia, compounded by two adverse clinical incidents at Brisbane and Clayton clinics that drew significant attention.

Addressing Clinical Incidents and Governance Enhancements

The Group responded swiftly to the incidents by implementing enhanced patient safety protocols exceeding industry standards and commissioning an independent review led by Fiona McLeod AO SC. All recommendations from this review are either completed or underway, with findings shared with regulators. These measures underscore Monash IVF’s commitment to patient care and risk management, even as the events weighed on operational momentum and investor confidence.

Dividend Suspension and Outlook for FY26

Reflecting the softer trading conditions and significant settlement payments related to the NiPGT class action, the Board prudently decided not to declare a final dividend for FY25. While disappointing for shareholders, the company signaled its intention to resume dividends in FY26, contingent on meeting profit guidance. Early FY26 trading data reveals a 12% decline in domestic stimulated cycles and a 2.4% market share drop in Australia, alongside margin pressures from volume declines and cost inflation. The Group anticipates underlying NPAT for H1 FY26 between $10 million and $10.5 million, with full-year results expected at the lower end of the $20 million to $23 million range.

Leadership Transition and Board Renewal

FY25 was marked by significant leadership changes. CEO Michael Knaap stepped down in May after six years at the helm, succeeded in an acting capacity by CFO Malik Jainudeen. The company announced the appointment of Dr. Victoria Atkinson as permanent CEO effective May 2026. Dr. Atkinson brings over 30 years of clinical and executive healthcare experience, including her current role as Chief Medical Officer at Healthscope. Concurrently, the Board is progressing a renewal process, welcoming new independent director Dr. Dwayne Crombie and preparing for further director retirements to strengthen governance and sector expertise.

Strategic Investments and Sustainability Focus

Despite operational headwinds, Monash IVF continues to invest in expanding and upgrading its clinic network, including a new state-of-the-art facility in Singapore and a Brisbane clinic and day hospital slated to open in late FY26. The Group also reported incremental improvements in success rates and sustained high volumes of fertility treatments and diagnostic services. Sustainability remains a priority, with enhanced emissions reporting and initiatives to reduce environmental impact, alongside ongoing efforts to reinforce safety, quality, and corporate culture.