Integrated Diagnostics (IDHC) Q3 2024 TU earnings summary

Executive summary

• Consolidated revenue reached EGP 4,107 million for the first nine months of 2024, up 34% year-on-year, driven by higher test volumes and average revenue per test.

• Net profit surged 87% year-on-year to EGP 724 million, with net profit margin rising to 18% from 13%.

• EBITDA reached EGP 1,249 million, with a margin of 30%, up from 29% last year.

• Egypt accounted for 82% of total revenue, with both pathology and radiology segments showing strong growth.

• Branch network expanded by 14 to 608, with 30 new branches in Egypt and 2 in Saudi Arabia; Sudan operations remain limited due to conflict.

Financial highlights

• Gross profit rose 38% year-on-year to EGP 1,571 million, with a gross margin of 38%.

• SG&A expenses increased 21% year-on-year to EGP 677 million, but as a share of revenue fell to 16%.

• Foreign exchange gains reached EGP 265 million, up 166% year-on-year.

• Cash balance at the end of September 2024 was EGP 1,338 million, up from EGP 835 million at 2023 year-end.

• Net debt reduced to EGP 74 million.

Outlook and guidance

• Full-year consolidated revenue growth is expected to be around 30% for 2024.

• EBITDA margin (excluding one-time items and Saudi ramp-up costs) is projected at approximately 30%.

• Expectation of continued growth in Egypt and ramp-up in Saudi Arabia, with macroeconomic improvements supporting demand.

• No guidance for 2025 provided yet, pending board approval.