Integrated Diagnostics (IDHC) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue rose 35% to EGP 1.583bn as strategic price increases offset Ramadan-related volume declines; tests completed fell 1% to 8.6mn and patients served fell 8% to 1.9mn.

• Gross profit increased 47% to EGP 631mn and EBITDA rose 51% to EGP 498mn; margins expanded to 39.8% and 31.5%, respectively.

• Reported net profit fell 39% to EGP 245mn, largely reflecting FX-gain normalization; adjusted net profit excluding FX gains rose 114% to EGP 214mn.

• Branch network reached 641 at March 31, 2025, up 54 year-on-year; household services contributed 21% of Egypt revenue.

Financial highlights

• Revenue per test rose 37% to EGP 185; average tests per patient increased 7% to a record 4.5.

• Walk-in revenue grew 28% to EGP 509mn and contract revenue grew 39% to EGP 1.074bn, both benefiting from price adjustments.

• Gross profit margin expanded to 39.8% from 36.6%; EBITDA margin rose to 31.5% from 28.2%.

• Quarter-end cash balance was EGP 1,662mn, with a net cash position of EGP 385mn.

• COGS declined to 60.2% of revenue from 63.4%, while SG&A fell to 16.8% from 17.8%.

Outlook and guidance

• FY 2025 revenue growth is guided at 32%-33% over 2024, with EBITDA margin expected above 30%.

• Egypt priorities include patient retention, pricing, cost control and radiology expansion; patient volumes are expected to normalize after Ramadan.

• Saudi operations target six branches by year-end 2025, including four planned openings; EBITDA break-even is expected in 2026 and positive net profit in 2027.

• Dividend decision deferred until after H1 2025, pending investment opportunities, particularly outside Egypt.