Integrated Diagnostics (IDHC) Q1 2024 TU earnings summary

Executive summary

• Q1 2024 revenue grew 28% year-over-year to nearly EGP 1.2 billion, driven by higher test volumes and price increases in Egypt and Nigeria.

• Net profit surged 139% year-over-year to EGP 402 million, with a net margin of 34%.

• EBITDA rose 45% year-over-year to EGP 330 million, with margin expanding to 28% from 25%.

• Egypt remains the primary growth driver, contributing about 85% of consolidated revenues, with 35% year-over-year growth.

• Operations in Sudan ceased due to conflict; Saudi Arabia operations commenced with two branches in Riyadh in January 2024.

Financial highlights

• Gross profit reached EGP 428 million, up 32% year-over-year, with a gross margin of 37% (up from 35%).

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

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

• Cost of goods sold rose 25.7% year-on-year, but as a share of revenue declined to 63.4%.

• SG&A expenses increased 6% year-on-year but fell to 18% of revenue.

Outlook and guidance

• Expecting consolidated revenue growth of around 30% for 2024.

• EBITDA margin anticipated to settle around 30%, excluding Saudi Arabia and non-recurring expenses.

• Guidance breakdown: 13% test volume growth and 20% revenue per test growth.

• Saudi Arabia expected to break even in 2026 and contribute around 5% of revenues by 2027.

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