I would now like to hand the conference over to Mr. Michael Knaap, CEO. Please go ahead, sir.
Thank you, Ryan, and good morning to all of you, and thank you for joining us today for Monash IVF Group's results presentation for FY 2022. With me today, I have our CFO, Malik Jainudeen, who will be later stepping through some of the financials. By way of background, Monash IVF is a market leader in providing reproductive care in our core assisted reproductive services, diagnostics, genetics, and pathology services. With an expanding, growing network of 49 IVF and women's ultrasound clinics and service centers across Australia and Southeast Asia. Our experienced and capable team now includes 146 doctors and in excess of 700 scientific nursing, counseling, and support staff. I would like to take this opportunity to thank everyone on our team for their unrelenting patient-first mindset and continued agility throughout the pandemic, and indeed more recently through the highly infectious COVID period.
This focus and effort of our people is the reason we have such an optimistic outlook for the future. I would now like to touch on the key points in the executive summary on slide three of the presentation. Our underlying profits were ahead of our guidance, delivering an underlying NPAT of AUD 22.2 million and a revenue increase of 4.7% versus the prior year, achieving AUD 192.3 million in total revenue for the financial year. With the financial result for FY 2022, our balance sheet strength and an optimistic outlook, we were able to declare a fully frank final dividend of AUD 0.022 per share.
In Australia, we had a strong ARS or IVF performance, with EBITDA growth of 6.9% versus the prior year, while also delivering growth in our market share of 0.2% versus the prior year, highlighting the sustainability of the all-time high industry volumes achieved in FY 2021. In our women's ultrasound business, our scan volumes declined by 8% versus PCP, being heavily impacted by COVID-19 infection and influenza disruptions. Pleasingly, we see this as a tailwind in FY 2023 as the environment normalization occurs. We continue to see the benefits of the strength of our doctor partnerships and being a destination of choice for specialists, increasing our doctor numbers by 24, both through business acquisition and recruitment. We have expectations to continue to build our fertility specialist team in the next financial year.
Our clinical infrastructure and expansion projects continue in FY 2023 with the delivery of new IVF clinic and day hospital in both Melbourne and Gold Coast and Brisbane in calendar year 2023, complementing the recently completed Darwin, Penrith, and Sydney CBD IVF clinics. Internationally, and specifically in Southeast Asia, our stimulated cycles decreased by 6.5% versus the prior year in a challenging environment. However, the momentum improvement occurred in the latter months of the financial year in all of our clinics as borders reopened and restrictions ceased, was quite strong. We now have five IVF clinics scattered throughout Southeast Asia, with a recent opening in Singapore and Bali opening in September. We continue to be focused on executing on a pipeline of opportunities in Southeast Asia.
I just wanted to touch on the compelling underlying demand drivers in our industry to support volume growth into the future as we look at slide four. There continues to be an advancement in maternal age as a long-term trend as people have delayed starting a family, which continues to increase infertility rates. Although there has been a significant increase in IVF demand, our average maternal age of 37 has remained constant since the start of the pandemic, which underlines continued growth in the industry during and post-pandemic. There has been a sustainable change in mindset of the community, with greater focus on family, health, and well-being during the pandemic.
To support that, we had 2.2% increase in new patients having stimulated cycles during the last financial year and a growth of 3.9% in new patient registrations on the back of an extremely high growth rates in the previous year. Growth in our service offerings and advances in technology are driving improved outcomes and appeal to the fertility value proposition. There is good growth potential in donor, social patient treatments, and genetic services into the future. Our significant recent improvement of 4.4% in the clinical pregnancy rates over the last three years is a testament to the improved value proposition for patients. There was an increase in government support from first of November in 2021 for patients who are carriers of known genetic disorders, and further funding of broader genetic testing services will be occurring from November 2023.
Furthermore, the New South Wales government announced an additional AUD 2,000 cash rebate for patients undergoing IVF treatments from the first of October 2022. This is expected to boost demand in New South Wales. These new government funding initiatives, along with the current stable government funding regimes of both IVF and ultrasound services, will support volume growth and patient affordability into the future. If we now look at slide five to focus on the broader ARS Australian market, where demand for services in Australia continues at close to record highs and significantly above pre-pandemic levels. The left-hand graph shows quarterly growth in stimulated cycles. During the financial year of 2022, in our key markets, stimulated cycles decreased by 1.1% compared to the previous year, which follows record stimulated cycle growth of 32.6% in the previous financial year.
Short-term factors negatively impacting the IVF industry during the second half of 2022 included widespread COVID and influenza infections, forcing patients to delay treatments, government intervention temporarily ceasing IVF services in Victoria and staff shortages due to increased sick leave. The right-hand graph shows the number of Australian cycles per year, noting the step change in volume in FY 2021, and maintaining volumes in FY 2022 despite the short-term challenges previously outlined. Given the industry dynamics, our view is that the new industry baseline for stimulated cycles has been set, and growth can continue into the future at 2%-3%. Having a clear picture of the Australian IVF volumes, I would just like to cover off on more details around our growth rates and the market shares on slide six.
In our key markets, our stimulated cycles were in line with FY 2021, despite IVF industry volumes declining by 1.1%. This led to market share gains of 0.2%, achieving 21.2% market share with gains in South Australia, Queensland and New South Wales. The key factors to our market share gains include the contribution from our new fertility specialists in the previous 12 months that continue to develop the referral and patient base, and also the creative marketing campaigns and substantial marketing investment to benefit future years. These gains were partly offset through some market share declines in Victoria and the temporary ceasing of treatment in Darwin as we relocated to a new state-of-the-art clinic.
Furthermore, our frozen embryo transfer market share increased by 0.6% versus the prior year, with 19.6% market share demonstrating a strong returning patient pipeline. Recent business acquisitions are taking us to new regions in Perth and Cairns, and building our strength in the Brisbane market. Coupled with a high number of doctor acquisitions, provides us with confidence that we will further build market share in Australia during FY 2023. I'd now like to welcome our CFO, Malik Jainudeen, to take us through some of the financials.
Thanks, Michael, and thank you everyone for joining us today. Turning to slide eight, which illustrates the revenue growth we achieved during the year. Considering the choppy environment we've experienced in the last six months, we are overall pleased with the revenue growth of AUD 8.7 million, or 4.7% compared to last year. What was most pleasing was the strength of the domestic IVF business while faced with challenges during Q3 and in light of the temporary suspension of services in Victoria in January. You can see that we've achieved growth in revenue from price increases during the year of between 2% and 3% across all markets, which contributed additional revenue of AUD 4.8 million, and in reference to FY 2023, we've already executed on 3%-4% price increases across all markets.
Market share gains added AUD 600,000 of revenue, and as Michael well-illustrated on the previous slide, we expect this to continue to grow going into FY 2023. The international business in KL had a challenging time, particularly in the first half, whereby revenue declined by 9% in the first half, but we have experienced improvements in the second half, where revenue declined by 3%. The pipeline is showing good signs, which suggests we should start seeing better performance in the first half of 2023. The ultrasound business was impacted by a number of uncontrollable events, including the Sydney COVID environment in Q1 and the Omicron impact in Melbourne and Sydney businesses in Q3. Sonographer illness had a substantial impact on capacity and efficiency as rooms are closed if a sonographer is not available.
As such, revenue declined by AUD 1.4 million, but we do expect gradual improvement to ultrasound performance during 2023. Other income grew by AUD 5 million compared to last year as a result of increased revenue in our day hospitals, increased revenue in genetics and insurance income we received during the year. Turning over to slide nine, I've illustrated an EBITDA bridge that gives you a story about our EBITDA growth during the year compared to last year. The key point to take away is earnings growth we've achieved in our core domestic IVF business, which grew EBITDA from AUD 47.7 million to AUD 51 million. The domestic business grew EBITDA by 12% before increases of AUD 2 million in additional insurance costs and inefficiencies experienced due to COVID-related factors.
This includes higher sick leave, higher annual leave expense, higher nursing and admin costs as a result of IVF cycles that have been canceled and just about worked up entirely to go to theater. Regarding the international and ultrasound businesses, EBITDA declines have been greater than revenue declines, as I noted before, the inefficiencies in the ultrasound business impacted earnings, while the international business included ramp-up costs for our new Singapore clinic. Turning over to slide 10, which illustrates a high-level group profit and loss. As noted on the previous slides, revenue grew by 4.7%, while underlying EBITDA grew by 0.8%, which reflects the additional insurance costs and inefficiencies as noted before. The sick leave and annual leave expense had a AUD 900,000 impact on earnings.
Reported depreciation and amortization increased by AUD 2.2 million, which includes rental payments on yet-to-be-commissioned clinics and non-cash AASB 16 related lease accounting adjustments. Underlying NPAT declined by 4.7%, reflecting movements in revenue and EBITDA and increases in depreciation as previously noted. Turning over to slide 11. As you can see, the cash flow statement is illustrated. Cash flow generation during the year was reasonable, with EBITDA converting to pre-tax cash flows at 97%. CapEx for the year was close to AUD 12 million, which reflects completion of a number of clinics, including Penrith in New South Wales, Darwin up north, and the new Singapore clinic. Works have commenced for the flagship clinics that we've talked about previously in Melbourne and the Gold Coast, with both clinics to have Monash IVF owned day hospitals to complement the IVF businesses and ultimately improve patient outcomes.
Given our new clinic plans, we expect substantial increases in CapEx in FY 2023. You'll see that we've outlaid AUD 3.4 million of acquisition costs during the year. This includes AUD 2.1 million of acquisition costs for the two acquisitions that were announced in May and in July. That cost also includes a number of targets that were not pursued. Turning over to slide 12. I've just illustrated the balance sheet that shows that we're still in a strong position, particularly in light of our plans for FY 2023. Net debt is AUD 2.1 million at June 30th, which provides capacity for all the growth initiatives that we have in the pipeline. We're expecting more than AUD 45 million of expenditure or cash outflows during FY 2023 related to CapEx and acquisition payments.
If I give you a bit of color on the CapEx, we're looking at around AUD 30 million in FY 2023 relating to new clinics, including Melbourne, Gold Coast, Brisbane, and Bali. While we expect around AUD 16 million of acquisition payments relating to the PIVET acquisition and the ART Associates acquisition. The debt facility was extended during the year for a further three years to December 2024. Also of note is we have a further AUD 40 million available in the accordion facility that allows for CapEx and acquisitions, and accordingly, we have appropriate facilities in place to cater for our growth plans, as we noted previously. I'll hand you back to Michael.
Thank you, Malik. Now I can move to slide 14 as we start to work through some of the details of our Australian ARS operational performance, commencing with a very critical pillar of our strategy, doctor partnerships. Our success in recruiting new doctors reflects the compelling doctor value proposition and the attraction of joining a group of highly engaged doctors across fertility and ultrasound. Our doctor value proposition is heavily geared towards our doctors' expectations on scientific leadership through excellent success rates, the patient and doctor experience, our business development initiatives for them, our leadership in marketing to drive patient acquisition, and high-quality clinical infrastructure. We continue to gather momentum in our doctor recruitment through acquisition and direct recruitment, having welcomed 53 new clinicians over the last four years, with 24 being added in the most recent year.
These results can only be achieved when you have a highly engaged doctor group being advocates for Monash IVF as a result of the experience and service quality they and their patients are recipients of. Our focus remains on attracting and onboarding new and experienced fertility specialists with a suitable cultural fit, outstanding clinical competencies, and industry reputation. As we take a deep dive on the business acquisitions that have been executed in recent months on slide 15. The recent acquisition of PIVET Medical Centre in Perth and Cairns and ART Associates Queensland in Brisbane will result in 15 additional fertility specialists and Monash IVF having the broadest IVF clinic footprint across Australia. These acquisitions also position us well to further recruit fertility specialists in these regions.
PIVET Medical Centre provides us with the entry into the WA market that has seen stimulated cycles growth of 9% per annum over the last 5 years, whereby we plan to build on the existing 8% market share held currently. Furthermore, we have extended our footprint in Northern Queensland, with the Cairns clinic complementing our existing clinics in Northern Queensland at Rockhampton and Townsville. We expect to complete in September with EPS accretion of 4%-5% in the first full year of trading. ART Associates Queensland broadens and complements our existing presence in Brisbane, where we have been underrepresented in market share historically. This provides us with the opportunity to build a state-of-the-art clinic with much needed scale to best service patients in the Brisbane region.
Completion is expected to be in the next month or so, and we have anticipated EPS accretion in the FY 2024 year to be in the range of 5%-10%, which will be subject to successful integration into Monash IVF. If you take a look at our clinical infrastructure progress and plans outlined on slide 16, the strategic priority of clinical infrastructure continues to be a focus in the medium-term horizon as our clinics are paramount to execution of our strategic growth objectives. Our new and updated clinics will drive revenue growth through increased capacity and new day surgery revenue, while ensuring we maintain an amazing experience for our patients, our people, and our doctors. The transformation of our Melbourne footprint is well advanced, with a new large-scale fertility clinic and day hospital expected to be open in Cremorne, located in the inner east of Melbourne.
The opening is planned to be early in 2023, which will consolidate four existing locations, introduce a new day hospital revenue stream, and provide an exceptional patient, doctor, and team experience. We're also undertaking clinic relocations and significant upgrades in the Gold Coast, including a day surgery, Brisbane, Albury in New South Wales, and Sunshine in the west of Melbourne. More recently, we have now completed our Darwin and Penrith, New South Wales clinics, and you can see the warm and welcoming entrances of those clinics on this slide. If we now take a look at slide 17 to focus on our scientific leadership. We have a continued unrelenting focus on investing and building scientific capability to ensure we are giving our patients the best possible outcomes and differentiating our value proposition to patients and doctors.
The chart at the bottom of this slide represents the continuous improvement in our clinical pregnancy rates across our group, with clinical pregnancies in calendar year 2021 increasing by a very significant 4.4% as compared to calendar year 2018. We have been on this journey of continuous improvement throughout our long heritage. The Monash Way, as developed by our group's scientific advisory committee, is well embedded across our group and has been a critical driver of improved success rates. It is worthwhile calling out some of the initiatives that will drive further improvements to our success rates into the future. We will continue to partner innovative organizations to advance new technologies, such as the safer and softer method of ICSI and a more effective sperm selection device.
Furthermore, we continue to roll out Time-lapse technology across our clinic, resulting in less embryo touch points during the development stage of the embryo, which will also facilitate artificial intelligence embryo selection capability. Our research and translation executive committee has been established to develop and operate a framework for future research and innovation governance and funding. This will drive new technology and clinical developments into the future to ensure we are at the forefront of innovation and research. Partnership and technologies, backed up by our ongoing research focus through our various research bodies, will ensure we continue to evolve and improve our success rates and the patient experience. As we move to slide 18, our substantial strategic marketing investment is a key driver of our market share gains and driving growth in our future patient pipeline and indeed improving our doctor value proposition.
We achieved strong strategic brand improvements, with three out of four of our key states now holding the highest brand preference and consideration among our competitors. Our people's positive engagement remains a key priority, and we are focused on continuing to achieve a culture of success throughout the Monash IVF Group for our doctor and employee teams. Pleasingly, we achieved a culture of success again in the most recent survey that was performed in recent months. We continue to make positive progress in building a diverse and inclusive workplace. This was recognized in 2022 by gaining the Employer of Choice for Gender Equity accreditation. Also, our learning and development framework and focus on personal and professional development will enable us to support growth opportunities and build capability, continuity, and retention, particularly during the changing employment landscape that currently exists.
If we turn to our diagnostic ultrasound performance on slide 19, which has been impacted by COVID-19 and influenza in Sydney and Melbourne. Our volume movement was consistent with the decline across the broader industry as we all faced into these challenges. Our ultrasound scan volumes declined by 8% versus PCP and non-invasive prenatal testing declined by 6.9% versus the prior year. Furthermore, the implications of the lockdown and penetration of COVID cases have impacted efficiencies, workforce flexibility, and patient willingness to enter a clinical setting. These factors reduce patient demand and indeed our margins. We anticipate that as we now come into a more stable COVID normal environment, the demand will stabilize and the efficient work practices will and are returning, providing a tailwind into FY 2023. In Sydney, we saw improving scan volumes in the Q4.
However, in Melbourne, we continued to battle capacity constraints that will correct during FY 2023. Following significant increases in demand for reproductive carrier screening services, we launched Monash IVF's branded reproductive carrier screening test in November 2021, allowing couples to identify potential genetic conditions in a child prior to conception. We've had a positive uptake of the test, which is available online, on our website, and in our clinics. This will be a new channel for stimulated cycle growth that is unrelated to fertility. Pleasingly, from November 2023, a Medicare rebate will be applied to the test, improving affordability and therefore penetration of the test. As we move abroad to our ARS international operation performance on slide 20, our Southeast Asian expansion strategy is gaining momentum despite COVID-19 challenges, which are gradually subsiding.
We will have five clinics in Southeast Asia, and strategically, we are targeting Southeast Asia to contribute more than 25% of the total group stimulated cycles by FY 2026. Our international underlying FY 2022 EBIT decreased by 22% or AUD 0.8 million to AUD 2.8 million as the Kuala Lumpur EBIT declined by AUD 0.7 million. However, to support growth into FY 2023, we have a new fertility specialist commencing at KL this quarter, and we are pleased that new patient consults for the second half of FY 2022 were 23% up on the prior year, providing positive momentum as we enter into FY 2023. In reference to our other clinics in Southeast Asia, we have recently commenced trading in Singapore, having recruited four experienced fertility specialists, and we anticipate to deliver up to 200 stimulated cycles in the first year.
We are adding to our clinic portfolio in September with a clinic opening in Bali, while our clinics in Johor Bahru, Malaysia, and Jakarta, Indonesia, are both anticipated to deliver profits as the border restrictions have eased and COVID impact is moderating. We are absolutely committed to the Southeast Asian region to further build our clinic footprint through a pipeline of partnership opportunities. As I take you to slide 22 for our Vision 2026 strategic roadmap. Vision 2026 continues to remain consistent in regard to our objectives and aspirations. We have made significant progress on our strategic pillars over the previous years as outlined in previous slides. With this platform established, we will continually evolve and improve in order to deliver our Vision 2026 objectives.
Our Vision 2026 strategic roadmap will continue to enable everyone to understand the priorities, actions, and decisions required to achieve success and deliver profitable growth in the oncoming years. As demonstrated through the previous year's progress, we have strong momentum on our strategic growth initiatives, and these have become more transparent in the previous twelve months. However, there is still more to achieve, and this will become more transparent over time. As we move to the all-important outlook for FY 2023, which is on slide 23. While the ongoing COVID-19 pandemic and macro uncertainty created volatility in the Australian IVF market in the second half of FY 2022, the favorable underlying demand dynamics are unchanged. Advanced maternal age and access to broader service offerings, including donor egg freezing and genetics, are expected to underpin long-term industry growth.
The recent short-term weakness in the market is largely attributable to patients being forced to delay treatment post-infection with COVID-19 or influenza, hesitancy to access healthcare services, and the macroeconomic uncertainty. However, there is some uncertainty around how long this market disruption will continue for. In financial year 22, we made significant investments in future growth, including recent acquisitions, attraction of new fertility specialists, and further expansion into Southeast Asia. In addition, a further AUD 45 million of capital expenditure investment and acquisition payments are anticipated to be made during FY 2023 that will continue to drive future growth and improve service delivery. The recent acquisitions of PIVET Medical Centre and ART Associates Queensland are expected to complete by end of September 2022 and will contribute to earnings growth in FY 2023.
Accordingly, and subject to further adverse impact from the ongoing pandemic, we anticipate FY 2023 underlying net profit after tax to grow in excess of 10% as compared to FY 2022. That ends the formal part of the presentation, Ryan, and we're happy to move to questions.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Jonathon Higgins from Shaw and Partners. Please go ahead.
Hi, guys. Thanks for taking the question today. Three from me just to start, if that's okay. Firstly, just around just the guidance, can you just maybe just pull back just a bit on that? Obviously, you're doing sort of a significant amount of investment in both new facilities, brownfields, greenfields, alongside bringing on some acquisitions for a part year contribution. Could you tell us anything more above sort of the NPAT line around the EBITDA or your expectations around that front, please?
Hey, Jono. Thanks for your question, and thanks for joining us. As you say, you know, we've got all those growth initiatives coming on board. You know, we've called out 10% earnings growth and, you know, Michael noted that a lot of that will come through from the acquisitions. You know, do we think there's gonna be organic growth? Absolutely. The current environment is a bit odd, but I think a lot of that will subside and play itself out in the next couple of months. We do see the second half being a lot stronger than the first half, Jono. You know, I think come AGM, we'll have an absolute clear picture of exactly what the year's gonna look like. We'll be pretty disappointed if we don't deliver 10% growth on last year.
I do expect EBITDA growth to be a little bit stronger than NPAT growth. Sorry, Jono, given the structure of the investments.
Yeah, no worries. Just sort of making that clear. That's perfect. Thanks for that, guys. Obviously, you know, the top line's a bit uncertain at the moment. Just in that context, what are your sort of observations on probably the domestic market and also the international markets look like they're starting to sort of turn a bit. Just interested in terms of sort of the July, August and potentially, you know, when we see that recovery in Asia playing out.
Yeah, look, we're seeing signs of recovery in Asia now, and you know, a completely different environment. High new patients coming through for consultations, particularly in our KL clinic. With the restrictions released and borders opening, the pipeline is constantly building in Southeast Asia. We'd expect some fairly significant improvement in our Asian clinics, particularly given a few of them are fairly new and were opened during a COVID-impacted period. We expect them to gather momentum, and they are in regards to patient interest. On a local front, it's probably fair to say that July was a little soft, excuse me, given it was a holiday period and so forth, and there was a lot of travel going on.
I can say that August is pretty strong. The blend of July and August is a pretty reasonable start to the financial year.
No worries. Last one from me, a bit out of the ordinary and a little bit abstract, so if you don't have this on you, I'll grab it from you later. I was leafing through the annual report in regards to the LTIs of the business and some of the EPS hurdles between FY 2021 and FY 2024. Just wondering, I think it's a CAGR, correct me if I'm wrong, but I think to hit sort of LTI hurdles in FY 2024, the EPS has to be sort of north of AUD 0.085. Is that sort of the LTI on the EPS front or there've been a mistake there?
I'll clarify it with you, Jono, in the next couple of days, but the LTI is about a 10%-12% EPS growth target, as well as TSR targets. I'm not sure exactly the nature of your question, but I think we can clarify that.
Yeah. The EPS accretion or CAGRs for LTI to hit or to be triggered is 10%, and you get 100% of it if you hit a 12% CAGR over a three-year timeframe.
No worries. Sort of through the financial year, obviously, if things improve and the growth come off and you have a good FY 2024, then that sort of accrues through those financial years.
Yeah, that's right. 2024 is the pivotal year. Jono, if you're asking. Absolutely.
Oh, yeah. I understand completely. No worries, guys. Thanks for taking the time.
Thank you.
Thanks, Jono.
Thank you. Our next question comes from the line of Rachael Harwood from Macquarie. Please go ahead.
Hi, Michael and Malik. Thanks for taking my questions.
Hey, Rachael.
Firstly, just on doctor recruitment. With really strong numbers in specialist recruitment, just wondering what that means, I guess, to the cost base going forward, and then more broadly, how you're seeing wage inflation.
From the cost perspective, the fundamentals of clinician cost in our business are around that sort of 18%-20%. We don't see that vary from that particular number. We expect that to be consistent throughout the hopefully growth in the next couple of years. In regards to wage inflation, we're just going through EBA negotiations at the moment, and they range in that sort of 3%-4% per annum and fairly similar to non-EBA based our staff as well. That's the sort of range. That's our highest cost, that's our highest potential risk when it comes to inflation is people, but we expect it to land around about those levels in the oncoming year, definitely.
Rachel, just on the impact on P&L. You know, I think we called out that if you do the numbers, we've attracted about 50 doctors in the last four years since the pandemic commenced. You know, in terms of the impact of call it acquisition costs for those doctors, you know, I'd safely say it's absolutely not material. You know, there's probably the reasons why doctors choose us is 'cause of the non-financial, non-monetary type factors. Yeah, pretty confident with our value proposition for doctors.
Yeah, understood. That's great. Just a bit of a follow-on from Jonathan. I mean, how are you seeing the pipeline to FY 2023 in the domestic market, maybe in terms of new patient registrations, you know, sort of new and returning customers? Then do you have any sense how sensitive customers are to an economic slowdown?
As I said, July was a bit soft and August saw a fairly significant rebound as well. The signs in August are quite positive. As far as the impact from economic conditions, our industry has traditionally been fairly robust when it comes to economic impact. The critical element in being able to have a successful baby and introduce a new life into the world is age the most determining factor. People that wanna have children, the longer they leave it, the less likely their success is. It's really important that when they decide to or they need fertility treatment, they do it sooner rather than later. That's a factor that impacts quite a significant amount of resilience against economic challenges.
Yeah, understood. Do you have any numbers on the sort of new versus returning customers? Is it still elevated for new customers?
It's still sitting at about 53%, Rachel. It's been at that level for the last two years.
Understood. That's great. Thanks for taking my question.
Thanks, Rachael.
Thank you.
Ladies and gentlemen, if you wish to ask a question, please press star one. Our next question comes from the line of David Stanton. Please go ahead.
I think it must be Dave Stanton from Jefferies, so I'll jump in in case Dave Stanton from Jefferies is someone else. Look, I wonder if you could talk to or give us an update on the willingness for IVF procedures, you know, in the short to medium term. You did reference, I guess, when you last spoke to the market, some kind of delays due to hospital, you know, the eight weeks of hospital delays post getting COVID. I mean, are we basically through that now and people are, ladies are more likely to get be willing to get have IVF going forward?
Yeah, I think it's caught up to itself and as people have deferred, they're starting to come through. David, I think there's still a little bit of a catch-up in regards to treatments and some pent-up demand as a result of the previous six months. We're not seeing, I guess, any material impact to volumes based on cancellations that occurred over the last couple of months.
Thank you. Just to beat a dead horse in terms of the wage pressures. I mean, would it be fair to say that, you know, in terms of your employee benefits expense, you know, frankly, much better than I thought it would be in the second half of FY 2022, but should we be taking, you know, the total number as a percentage of sales revenue into 2023 or should that be bumping up as a percentage of sales into 2023 by that 3%-4% that you've talked to?
No, David, I think that's a fair assumption that you said at the start. You know, we're putting our prices up by 3%-4%, and we may even go by more in January. Our wage inflation is gonna follow that type of percentage as well. Taking a percentage of revenue for sales is probably appropriate.
Understood. Very clear. In terms of doctor recruitment, you know, you've made a fair point of the fact that you've recruited quite a large number of doctors. I'd just be interested to understand what percentage of those new doctors are on profit share of that 54 that you've got, and how many of your 146 doctors now are on profit share agreements, please?
All of our clinicians outside of Adelaide, David, are on fee for service. For every AUD 1 that we generate, they get around 18%-20%. That's been consistent for at least in our time since IPO in 2014. Yeah, I think, David, that's as simple as that.
There is no formal profit share or informal profit share arrangements in our organization, Dave.
Understood. Finally, you know, can you help us in 2023 reconcile, you know, underlying to statutory, you know, what's the potential size at the NPAT line of that, what you had of the AUD 3.7 in FY 2022? What should we be thinking approximately the scale will be in FY 2023, please?
The way I'm looking at it at the moment, Dave, is the two transactions that we had will have some stamp duty that comes through when they complete. We've got rent expense for clinics that are yet to open. I can call out Melbourne, Gold Coast, Bali, and we'll have some rent expense come through as, call it, non-regular. And then we'll have some, call it acquisition accounting, fair valuation of earn-out payments, let's say. It's probably gonna be comparable, 'cause our Melbourne and Gold Coast clinics are probably not due to open till the end of Q3, let's say.
Understood. Very clear. Thank you.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star one. Since there are no further questions at this time, I will now hand back the conference to Mr. Knaap for closing remarks.
Thank you, Ryan, and thank you so much for everyone for your interest in Monash IVF Group. We both, along with our COO, Hamish Hamilton, look forward to seeing many of you in the oncoming week. Have a good day.
Thank you, sir. The conference has now concluded. Thank you for your participation. You may now disconnect your lines.