Integrated Diagnostics reports strong year after solid Q4

(Sharecast News) - Integrated Diagnostics reported a strong financial performance in 2024 on Thursday, with full-year revenue rising 39% to EGP 5.72bn (£84m) and net profit more than doubling to EGP 1.01bn, driven by higher volumes, strategic price increases and cost efficiencies across its markets. The group conducted 39.2 million tests during the year, up 9% from 2023, while average revenue per test rose 28% to EGP 146.

Total patient numbers increased 5% to 8.95 million, and revenue per patient climbed 32% to EGP 639.

Operational leverage and disciplined cost control supported a 115% year-on-year increase in net profit, with the net margin improving to 17.6% from 11.4% in 2023.

Fourth-quarter performance was particularly strong, with revenue reaching EGP 1.61bn, a 51% year-on-year increase and the highest quarterly figure on record.

Net profit for the quarter jumped 251% year-on-year to EGP 284m, maintaining a margin of 17.6%.

Gross profit rose 43% to EGP 2.18bn, with gross margins expanding by 1.2 percentage points to 38.1%.

Adjusted EBITDA grew 45% to EGP 1.73bn, with the margin improving to 30.3%.

IDHC's cost of sales rose 36%, slightly below revenue growth, reflecting improved efficiency and lower relative staffing and depreciation costs.

The company also benefited from EGP 303m in currency gains, and a 41% reduction in net interest expenses.

Its branch network grew by 27 to reach 628 sites at year-end, with the majority of expansion occurring in Egypt.

The Egyptian business, which contributed over 82% of total revenue, saw sales rise 38% to EGP 4.72bn.

In Jordan, revenue in local currency was broadly flat due to pricing regulation, though Egyptian pound-reported revenue rose 49% due to currency effects.

Nigeria posted local currency revenue growth of 39% but saw a 15% decline in EGP terms, as inflationary pricing was offset by weaker patient volumes and a depreciated naira.

Saudi Arabia, IDHC's newest market, began generating revenue in 2024 and contributed 0.3% of group sales.

The company increased its stake in the Saudi joint venture to 100% by year-end to accelerate growth in what it saw as a high-potential market.

IDHC said it ended the year with a cash balance of EGP 1.72bn, up 105%, and remained focused on expanding its footprint and improving returns across its core markets, despite challenges in Sudan, where most operations remained suspended.

"We enter 2025 with cautious optimism fuelled by the encouraging signs coming out of Egypt and the wider region," said chair Anthony St John, 22nd Baron St John of Bletso.

"In the coming year, your company will continue to prioritise the delivery of superior care to patients across its growing footprint, as it leverages improving market conditions to deliver accelerated growth and enhanced margins."

At 0847 BST, shares in Integrated Diagnostics Holdings were up 7.41%.

Reporting by Josh White for Sharecast.com.