Integrated Diagnostics (IDHC) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 delivered robust results with 35% revenue growth to EGP 1.6 billion, strong operational KPIs, and margin expansion, especially in Egypt and Nigeria.

• Egypt and Nigeria benefited from stabilizing macroeconomic conditions, including lower inflation and currency stabilization.

• Strategic expansion continued, with the branch network reaching 641, including 54 new branches and a reopening in Sudan.

• Adjusted net profit more than doubled year-on-year, with margin up five percentage points, excluding last year's FX gains.

• Nigeria operations turned EBITDA positive, reflecting a successful turnaround strategy.

Financial highlights

• Q1 2025 revenue reached EGP 1.6 billion, up 35% year-on-year, driven by a 37% increase in average revenue per test.

• Gross profit margin expanded to 40% (from 37% in Q1 2024); EBITDA margin rose to 31.5% (from 28.2%).

• Cash reserves stood at EGP 1.7 billion, with a net cash balance of EGP 385 million as of March 31, 2025.

• Cost of goods sold as a percentage of revenue declined to 60.2% from 63.4% last year, mainly due to lower raw material and depreciation costs.

• SG&A expenses rose 28% but fell as a percentage of revenue to 17%.

Outlook and guidance

• Full-year 2025 revenue growth expected at above 30%, with EBITDA margin projected north of 30%.

• Group revenue growth for 2025 guided at 32%-33% over 2024.

• Saudi operations expected to break even on EBITDA in 2026 and achieve positive net profit in 2027.

• Four new branches planned in Saudi Arabia by year-end.

• Dividend decision postponed until after H1 2025, pending investment opportunities.