Monash IVF Group had a very successful year in FY23, driven by our commitment to market leading success rates, our recent investment in best-in-class infrastructure and patient experience, and the dedication of our people and clinicians.
This success was reflected in our strong financial results, market share gains across most of our businesses, and most importantly, a further increase in success rates ensuring we give every patient the best opportunity to create or grow their family.
In FY23, Monash IVF Group delivered revenue growth of 11.1% to $213.6m, and Underlying EBITDA growth of 11.0% to $53.4m. The strong performance was driven by the domestic Assisted Reproductive Services and Women’s Imaging business, partly offset by a weaker result from the International IVF business.
A very exciting part to the FY23 result was the promising second half performance, where 2H23 underlying NPAT increased by 46.6% on prior comparative period. This compelling ramp up in activity across the year reflects a return to positive industry momentum and tangible benefits starting to flow from the significant recent investment in growth, which together provides confidence leading into FY24.
I have great confidence in the outlook for Monash IVF Group, with our businesses performing well and our Company in a strong financial position.
Key highlights of FY23
During FY23 we welcomed a further 25 fertility specialists into the Monash IVF Group family. Our attractive doctor value proposition ensures that Monash IVF Group is the destination of choice for clinicians. Our highly engaged doctor group are strong advocates for the Group, and this is instrumental in our successful recruitment of new clinicians. Our Australian IVF business grew market share by a further 1.4% to 22.7%, driven by organic growth and the ART Associates and PIVET acquisitions.
We have continued to drive better outcomes for our patients, with clinical success rates improving 1.0% to 38.0% in calendar year 2022, with a further 0.7% improvement in the March 2023 quarter to 38.7%. We continue to invest in research and partner with innovative organisations, ensuring we remain at the forefront of scientific developments in the fertility space.
We have completed new fertility clinics in Cremorne (Victoria), Penrith, Darwin, Rockhampton and Gold Coast, whilst there are another three clinics in various phases of design and construction, including Brisbane, Sunshine and an ultrasound clinic in St Leonards. In addition, a new day hospital has opened in Gold Coast during 1H24, with Cremorne’s Day Surgery Unit opening at the end of 2023.
We are positioning ourselves to benefit from growth in new services such as egg freezing and genetic carrier screening, and we are investing in new channels such as sport and corporate channels so we can reach and educate patients earlier in their fertility journey.
Our Women’s Imaging businesses in Sydney and Melbourne returned to growth in the second half of FY23. With industry headwinds now behind us, we are confident of consolidating this improved performance in FY24.
In South-East Asia, whilst we experienced a slower ramp up in volumes in Singapore, our other clinics performed well, and we are committed to growing our presence in this attractive region. Our current focus is on improving doctor engagement and recruiting more fertility specialists in existing clinics, driving clinical and scientific leadership in the region and exploring new partnership opportunities.
People: Our most important asset
Monash IVF Group is a people-centric business, with our People at all levels of the organisation working together to deliver life changing outcomes to our patients at a very sensitive and emotional stage in their lives. We place great importance on learning and development, workplace health and safety, and inclusion and diversity. Our commitment to our people is reflected in Monash IVF Group reporting our highest ever engagement score of 64%, well above industry benchmarks.
I would like to thank all our people and clinicians for their tremendous efforts during the year and their unrelenting patient-first mindset. It is their dedication that has ensured we deliver exceptional experiences and outcomes for our patients and clinicians and create value for our shareholders. This focus on our people and their commitment to our vision, are key reasons we have such an optimistic outlook for the future.
A return to industry growth in 2H23, recent market share gains and strong new patient registrations provides a positive growth trajectory for Monash IVF Group heading into FY24. We are continuing to focus on attracting and onboarding new and experienced fertility specialists and we continue to invest in the medium to long term future through new and upgraded clinic infrastructure. This reflects our commitment to driving improvement to our Patient and Doctor Experience whilst also representing the strong belief we have in future industry growth.
I have great confidence in the outlook for Monash IVF Group, with our businesses performing well and our company in a strong financial position. We have a clear Vision 2026 strategy to deliver sustainable growth and create value for our shareholders.
Mr Michael Knaap
Managing Director &
Chief Executive Officer