Integrated Diagnostics (IDHC) Q1 2024 TU earnings summary

Executive summary

• Q1 2024 revenue rose 28% YoY to EGP 1,171mn, with tests up 8% to 8.7mn and revenue per test up 18% to EGP 135.

• Reported net profit increased 139% to EGP 402mn; adjusted net profit excluding FX gains was EGP 100.3mn, versus EGP 59mn a year earlier.

• EBITDA grew 45% to EGP 330mn, with margin expanding to 28% from 25%.

• Egypt contributed 84.5% of revenue and grew 35% YoY to EGP 989mn.

• Sudan operations ceased amid conflict; Saudi Arabia operations launched with two branches.

Financial highlights

• Revenue was EGP 1,171mn, up 28% YoY; conventional revenue rose 24%, and revenue per test increased 18% to EGP 135.

• Gross profit increased 32% to EGP 428mn, with gross margin at 37% versus 35% in Q1 2023.

• EBITDA reached EGP 330mn, up 45%, with margin at 28% versus 25%.

• Reported net profit was EGP 402mn, up 139%; adjusted net profit excluding FX gains was EGP 100.3mn versus EGP 59mn.

• Cash balance was EGP 944mn at quarter-end, versus EGP 835mn at year-end 2023; net cash was EGP 359mn.

Outlook and guidance

• FY 2024 revenue growth guidance is 30% YoY; EBITDA margin guidance is ~30%, excluding Saudi Arabia and non-recurring items.

• Profitability is expected to benefit from cost optimization, while macroeconomic pressures and one-off expenses remain; initial devaluation effects are expected to fade.

• Egypt priorities include strategic price increases, patient retention, volume growth, supplier cost control and expanding radiology contribution.

• Saudi Arabia plans to expand to six branches by year-end; break-even is expected in 2026, with ~5% of revenue targeted by 2027.