Despite a 2.9% rise in net profits for the year to A$29.6 million (US$23.5 million) shares in Monash IVF Group, Australia’s second largest fertility treatment provider, declined almost 7% yesterday.

Revenues however declined 0.9% to A$155.2 million.

Even though the results were in line with guidance, the results were predominantly the result of strong cost control, rather than growth in the business.

The domestic market remained weak. The group Australian stimulated cycles decreased by 3.1% against overall Australian market decline of 0.8% and Monash’s stimulated cycles market share decreased from 22.9% to 22.4% with Australian patient treatments market share decreasing by 0.6% to 23.2%.

As a result of a low cost competitor entering the Victorian assisted reproductive services market Monash’s market share initially declined, however this trend reversed in Q4 recording a slight increase in market share.

The international market was a bright light. The KL Fertility business in Malaysia continued to deliver strong growth in patient treatments of 10.1% during the year. EBITDA increased to A$2.5 million as the benefits of strong volume growth were offset by a weakening currency and the upfront investment to support the transition to a new purpose-built clinic and day surgery to accommodate demand growth experienced in Malaysia. The group says that the transition to the new clinic was completed in May with positive initial feedback from patients and strong volume growth.

Looking forward CEO and managing director James Thiedeman said: “Monash IVF continues to focus on two key areas for growth and performance; to continue to leverage its heritage of scientific and technological excellence to maintain leading pregnancy success rates in the industry; and continue to capture growth through further acquisition opportunities in Australia and abroad based on its premium position in the sector”.

Monash shares are down more than 24% year-to-date. They closed at A$6.89.