Integrated Diagnostics (IDHC) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached EGP 2,498mn, up 33% YoY, driven by higher test volumes and average revenue per test; growth included significant Covid-19 testing in the comparison period.

• Net profit rose 127% to EGP 480mn, while adjusted net profit excluding FX gains was EGP 183.3mn.

• Egypt contributed 82.8% of revenue, with growth across pathology, radiology and house-call services.

• The network added 20 branches in Egypt and two in Saudi Arabia; all 18 Sudan branches were closed due to conflict.

• Voluntary delisting from the Egyptian Exchange was completed, with shares moving to the London Stock Exchange.

Financial highlights

• Revenue was EGP 2,498mn (+33% YoY); Q2 revenue reached EGP 1,327mn (+39%).

• Gross profit rose 41% to EGP 925mn, with a 37% margin versus 35% in H1 2023.

• EBITDA increased 45% to EGP 668mn, with a 27% margin versus 25%; adjusted EBITDA was EGP 767mn, with a 31% margin.

• Net profit rose 127% to EGP 480mn, with a 19% margin versus 11%; adjusted net profit excluding FX gains was EGP 183.3mn, with a 7% margin.

• A EGP 297mn FX gain boosted reported net profit; adjusted net profit was EGP 183.3mn versus EGP 109mn in H1 2023.

Outlook and guidance

• FY 2024 revenue growth guidance was reaffirmed at ~30%; EBITDA margin is expected at ~30%, excluding non-recurring items and Saudi Arabia start-up costs.

• Egypt revenue and volume acceleration from May continued through July and August; priorities include pricing, patient retention, supplier terms and cost optimization.

• Full-year profitability faces macroeconomic challenges and one-off expenses; margin pressure is expected to normalize as the initial EGP devaluation impact fades.

• Strategy includes expanding radiology, growing test volumes and customer reach, entering new geographies, and diversifying medical services.

• Saudi Arabia revenue guidance was revised to SAR 1.6mn for 2024.