Integrated Diagnostics (IDHC) H1 2024 earnings summary

Executive summary

• Achieved consolidated revenue of EGP 2.5 billion in H1 2024, up 33% year-over-year, driven by higher test volumes and increased average revenue per test.

• Net profit surged 127% year-over-year to EGP 480 million, with net profit margin expanding to 19%.

• Egypt contributed 83% of consolidated revenues, with strong growth in both pathology and radiology segments; house call services also performed well.

• Expanded branch network in Egypt and Saudi Arabia, with 20 new branches in Egypt and two in Riyadh.

• Operations in Sudan were suspended due to conflict; voluntary delisting from the Egyptian Exchange completed, with shares moving to the London Stock Exchange.

Financial highlights

• Revenue grew 33% year-over-year to EGP 2.5 billion, with average revenue per test up 23% to EGP 140.

• Gross profit rose 41% to EGP 925 million, with a margin of 37%.

• EBITDA reached EGP 668 million (27% margin), and adjusted EBITDA (excluding non-recurring items) was EGP 767 million (31% margin).

• Net profit increased 127% year-over-year to EGP 480 million, with a net margin of 19%; adjusted net profit (excluding FX gain) was EGP 183 million (7% margin).

• Cash balance: EGP 1.25 billion at June 2024, up from EGP 835 million at end-2023; net debt reduced to EGP 35 million.

Outlook and guidance

• Expect consolidated revenue growth of around 30% for 2024, with EBITDA margin to stabilize around 30% excluding Saudi Arabia and non-recurring expenses.

• Projected group gross profit margin for the year is around 35%.

• Saudi Arabia revenue guidance revised to SAR 1.6 million for 2024.

• Continued focus on cost optimization, price adjustments, and expansion in Egypt and Saudi Arabia.