Integrated Diagnostics (IDHC) Q1 2024 TU earnings summary

Executive summary

• Achieved consolidated revenue of EGP 1.2 billion in Q1 2024, up 28% year-over-year, driven by higher test volumes and price increases in Egypt and Nigeria.

• Egypt remains the primary growth driver, contributing 85% of consolidated revenues, with strong performance in both pathology and radiology segments and 35% year-on-year growth.

• Operations in Sudan were fully halted due to civil conflict, and new operations commenced in Saudi Arabia with two branches in Riyadh.

• Announced proposal to voluntarily delist from the Egyptian Exchange due to low trading volumes, maintaining primary listing on the London Stock Exchange.

• EBITDA rose 45% year-over-year to EGP 330 million, with margin improvement to 28%.

Financial highlights

• Revenue grew 28% year-over-year to EGP 1.2 billion, with average revenue per test up 18% to EGP 135.

• Gross profit increased 32% to EGP 428 million, with gross margin rising to 37% from 35% a year prior.

• Net profit surged 139% to EGP 402 million, with net margin at 34% (up from 18%), driven by a significant forex gain.

• Adjusted net profit (excluding forex gain) was EGP 100 million, with margin up to 9% from 6%.

• Cash balance at end of March 2024 was EGP 944 million, up from EGP 835 million at end of 2023.

Outlook and guidance

• Expecting consolidated revenue growth of around 30% for 2024, with EBITDA margin guidance of approximately 30% (excluding KSA and non-recurring items).

• Revenue growth guidance decomposed as 13% from test volume and 20% from revenue per test.

• Price increases in Egypt averaged 23% at the start of the year, with further adjustments possible depending on inflation.

• KSA operations expected to break even in 2026 and contribute around 5% of total revenue by 2027.

• Plans to expand Saudi Arabia branch network to six by year-end.