In This Article:
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Revenue: EGP5.7 billion, a 39% year-on-year increase.
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Test Volume: 39.2 million tests performed, with a 12% five-year CAGR in conventional test volume.
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Tests per Patient: Increased to 4.4 in 2024 from 4.2 in 2023.
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Egypt Revenue Growth: 38% expansion in revenues.
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Branch Expansion in Egypt: 43 new branches, totaling 587 branches.
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Radiology Revenue: EGP224 million, a 45% increase.
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Average Revenue per Scan: EGP854, a 19% year-on-year increase.
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Saudi Arabia Revenue: EGP18 million from two branches.
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Raw Materials Cost: Declined to 22% of revenue from 22.2% in 2023.
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Direct Salaries to Revenue: Reduced to 18.6% from 18.8% in 2023.
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Cash Conversion Cycle: Reduced to 99 days from 129 days in 2023.
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Total Cash Reserve: EGP1.7 billion, up from EGP835 million in 2023.
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Integrated Diagnostics Holdings PLC (IDGXF) achieved a record-breaking 39% year-on-year revenue growth, reaching EGP5.7 billion.
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The company performed 39.2 million tests in 2024, marking a five-year compounded annual growth rate of 12% in conventional test volume.
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The test per patient metric improved to 4.4 tests per patient in 2024, up from 4.2 in 2023 and 3.7 in 2022.
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The company expanded its network in Egypt by adding 43 new branches, maintaining its position as the largest diagnostic provider in the country.
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Profitability improved across gross profit, EBITDA, and net profit levels, despite rising cost pressures from inflation and currency devaluation.
Negative Points
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Macroeconomic difficulties in Egypt and Nigeria, along with geopolitical instability in the MENA region, posed significant challenges.
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The ongoing conflict in Sudan severely impacted operations, with only one branch operational for several months.
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The company deferred its dividend declaration for 2024, causing disappointment among investors.
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Audit expenses increased due to the devaluation of the Egyptian pound, despite delisting from the Egyptian exchange.
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The rollout of the Saudi Arabian venture was slower than expected, impacting the anticipated growth trajectory.
Q & A Highlights
Q: Can you explain the rationale for deferring the dividend despite strong cash generation and a solid balance sheet? A: Dr. Hend El Sherbini, CEO, explained that while IDH has historically paid dividends, the decision to defer this year is due to the focus on growth, particularly after acquiring the stake of their Saudi partner. The company is cautious about capital needs for potential growth opportunities and market instability.