Integrated Diagnostics (IDHC) H2 2024 earnings summary

Executive summary

• Record FY 2024 results: revenue reached EGP 5.72bn (+39% YoY), EBITDA EGP 1.7bn (+49%), and net profit EGP 1.0bn (+115%).

• Completed tests rose 9% to 39.2mn and patients served increased 5% to 8.9mn, supported by higher volumes and strategic repricing.

• Egypt accounted for 82.5% of revenue; radiology expanded and Saudi operations entered their ramp-up phase.

• Results came amid inflation, currency weakness and geopolitical challenges across Egypt, Nigeria, Sudan and the MENA region.

Financial highlights

• Revenue rose to EGP 5,720mn from EGP 4,123mn; gross profit reached EGP 2.2bn (+43%), EBITDA EGP 1.7bn (+49%) and net profit EGP 1.0bn (+115%).

• Revenue per test increased 28% to EGP 146; total tests rose 9% to 39.2mn and patients served grew 5% to 8.9mn.

• Egypt revenue rose 38% to EGP 4,718mn; Jordan revenue increased 49% to EGP 899mn in EGP terms, while Nigeria revenue fell 15% to EGP 82mn.

• Nigeria revenue grew 39% in local currency; Jordan test volumes rose 3% while revenue was stable due to pricing regulation.

• Net cash reserves reached EGP 1,716mn from EGP 835mn at 2023 year-end; net cash was EGP 226mn versus net debt of EGP 358mn a year earlier.

Outlook and guidance

• 2025 revenue growth expected at 33%, with gross margin of 38% and EBITDA margin of 31%; margin recovery is expected as inflation normalizes and cost optimization continues.

• Group-wide price increases of 26% were implemented at the start of 2025; Egypt priorities include pricing, patient retention, cost control and volume growth.

• Saudi Arabia plans to reach six branches by year-end 2025, with USD 5.2mn additional investment planned; longer-term target is up to 30 branches in three years.

• Nigerian operations were expected to return to profitability in Q1 2025; lower inflation and recovering purchasing power were expected to support volumes.

• Revenue and volume acceleration beginning in May was expected to carry through the remainder of 2025 as inflation declines.