Integrated Diagnostics (IDHC) Q3 2024 TU earnings summary

Executive summary

• 9M 2024 revenue rose 34% YoY to EGP 4,107mn, driven by 9% higher test volumes and a 23% increase in average revenue per test.

• Net profit increased 87% to EGP 724mn; net profit margin improved to 18% from 13%.

• EBITDA rose 43% to EGP 1,249mn, with a 30% margin versus 29% in 9M 2023.

• Branch network reached 608, up 14 YoY, including 30 new Egypt branches and two in Saudi Arabia; Sudan operations remained limited by conflict.

• Delisted from the Egyptian Exchange in Q3 2024 and maintained the LSE listing.

Financial highlights

• Revenue was EGP 4,107mn, up 34%; gross profit reached EGP 1,571mn, up 38%, with gross margin of 38% versus 37%.

• EBITDA was EGP 1,249mn, up 43%, with a 30% margin; net profit was EGP 724mn, up 87%, with an 18% margin.

• Tests completed increased 9% to 28.8mn and patients served rose 6% to 6.6mn; average revenue per test increased 23% to EGP 142.

• SG&A rose 21% to EGP 677mn but declined to 16% of revenue from 18%; COGS fell to 61.7% from 62.7% of revenue.

• Cash reached EGP 1,338mn at 30 Sep. 2024, up from EGP 835mn at year-end 2023.

Outlook and guidance

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

• Cost optimization is expected to support profitability, while macroeconomic challenges and one-off expenses remain a drag; margin pressure is expected to normalize as the initial EGP devaluation impact fades.

• Egypt priorities include strategic pricing, patient retention, volume growth and supplier cost control; Saudi Arabia expansion and branch ramp-up remain priorities.