REG - Integrated Diag Hdgs - 1st Quarter Results
28/05/2025 07:00
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RNS Number : 2983K Integrated Diagnostics Holdings PLC 28 May 2025
Integrated Diagnostics Holdings Plc
Q1 2025 Results
Wednesday, 28 May 2025
Integrated Diagnostics Holdings plc kicks-off 2025 on strong note with revenue
climbing 35% and profitability maintaining improving trajectory
(London) - Integrated Diagnostics Holdings ("IDH," "the Group," or "the
Company"), a leading provider of diagnostic services with operations in Egypt,
Jordan, Nigeria, Saudi Arabia, and Sudan announced today its unaudited
financial statements for the three-month period ended 31 March 2025. IDH
recorded year-on-year revenue growth of 35% in the first quarter of 2025 with
the Company's top-line reaching EGP 1,583 million. Further down the income
statement, the Company's efforts to optimize operations and spending continued
to support steady improvements in underlying profitability. More specifically,
IDH saw its gross and EBITDA margins reach 40% and 31%, respectively, during
the first quarter, marking substantial year-on-year improvements. Finally, it
is important to note that the contraction seen in the Company's bottom-line
this quarter comes on the back of a normalisation in FX gains booked during
the period, as local currencies in Egypt and Nigeria largely stabilised over
the last twelve months. When controlling for FX gains in both periods, IDH's
normalised net profit more than doubled in Q1 2025 with the Company's
normalised bottom-line margin expanding by five percentage points versus the
corresponding quarter of last year.
Financial Results (IFRS)
EGP mn Q1 2024 Q1 2025 Change
Revenue 1,171 1,583 35%
Cost of Sales (742) (952) 28%
Gross Profit 428 631 47%
Gross Profit Margin 36.6% 39.8% 3.3 pts.
Operating Profit 220 365 66%
EBITDA(1) 330 498 51%
EBITDA Margin 28.2% 31.5% 3.3 pts.
Net Profit (Profit After Tax) 402 245 -39%
Profit after Tax Margin 34.3% 15.5% -18.8 pts.
Normalised Net Profit2 100 214 114%
Normalised Net Profit Margin 8.6% 13.5% 5.0 pts.
Cash Balance3 944 1,817 92%
Note: Throughout the document, percentage changes are calculated using the
exact value (as per the Consolidated Financials) and not the corresponding
rounded figure.
Key Operational Indicators4
EGP Q1 2024 Q1 2025 Change
Branches 587 6415 +54
Patients ('000) 2,038 1,882 -8%
Revenue per Patient (EGP) 574 839 46%
Tests ('000) 8,683 8,555 -1%
Revenue per Test (EGP) 135 185 37%
Test per Patient 4.3 4.5 6%
1 EBITDA is calculated as operating profit plus depreciation and amortization.
2 Normalised net profit excludes FX gains from both periods.
3 Cash balance includes time deposits, treasury bills, current accounts, and
cash on hand.
4 Key operational indicators are calculated based on revenue for the periods
of EGP 1,583 million and EGP 1,171 million for Q1 2025 and Q1 2024,
respectively.
(5) IDH rolled out 54 new branches in Egypt while closing 1 branch in Jordan
over the past 12-month period. It is important to note that due to the ongoing
conflict in Sudan, only one of IDH's 18 branches in the country is currently
operating (reopened in Q3 2024).
Introduction
i. Financial Highlights
· IDH recorded consolidated revenue of EGP 1,583 million in Q1
2025, representing an increase of 35% from the same three months of last year.
The year-on-year expansion was driven by a 37% year-on-year increase in
average revenue per test which more than offset a slight decline in volumes.
It is worth noting that lower volumes for the quarter reflect the anticipated
seasonal slowdown associated with the holy month of Ramadan which in 2025
began on March 1 (versus March 11 in 2024).
· Gross profit recorded EGP 631 million in Q1 2025, up 47% from the
same quarter a year ago. Gross profit margin (GPM) also expanded versus the
comparable period of 2024, coming in at 39.8% in Q1 2025 versus last year's
36.6% figure. The steady improvements in gross profitability reflect the
Company's proactive strategy focused on optimising spending and boosting
operational efficiencies. During the quarter, IDH saw raw materials as a share
of revenue decline to 19.5% versus 21.1% this time last year. Meanwhile,
despite inflation remaining well above average across several of its markets,
IDH's headcount optimisation efforts enabled it to maintain direct salary and
wages as a share of revenue largely unchanged versus the previous year.
· EBITDA6 recorded EGP 498 million in the first three months of the
year, up 51% year-on-year and with an associated margin of 31% versus 28% in
Q1 2024. Improvements in IDH's EBITDA margin were supported by enhanced gross
profitability for the quarter combined with further cost savings recorded at
the SG&A level. Improved EBITDA profitability also reflects a notable
decline in provision charges for doubtful accounts booked during the quarter
on the back of improving operating and economic conditions across several of
IDH's chosen markets and the successful deployment back in May 2024 of a new
incentive program for staff to boost collection rates.
· Net profit (Profit after tax) stood at EGP 245 million in Q1 2025
versus EGP 402 million in Q1 2024. Similarly, IDH's bottom-line margin
declined to 15% for the quarter versus 34% last year. It is important to note
that last year's figures include a significant boost from FX gains recorded
during the period. Controlling for FX gains during both reporting periods, IDH
recorded impressive improvements in normalised net profit,7 with this
quarter's figure more than doubling versus last year and with its associated
margin expanding by five percentage points from Q1 2024.
ii. Operational Highlights
· As at 31 March 2025, IDH's branch network stood at 641 branches,
up 54 branches from the 587 branches as at 31 March 2024. Over the last year,
IDH has inaugurated 54 new branches in Egypt and reopened a branch in Sudan
(the remaining 17 continue to be shut indefinitely). Meanwhile, IDH saw the
closure of one of its airport branches in Jordan as demand for Covid-19
testing continued its rapid decline.
· During Q1 2025, IDH conducted 8.6 million tests across its
markets, down only marginally versus last year primarily due to an earlier
start to Ramadan in 2025 (March 1 in 2025 versus March 11 in 2024). It is
important to highlight IDH's success in maintaining test volumes largely
unchanged despite the strategic price adjustments introduced at the start of
the year, clearly signalling that the Company's value proposition remains
highly attractive to patients across its growing footprint. It is also worth
noting that Jordan recorded a robust year-on-year rise in test volumes which
helped offset the anticipated seasonal decline in Egypt.
· IDH's average revenue per test rose further as the Company
continues to hike prices to keep pace with high inflation across several of
its markets. More specifically, average revenue per test rose 37% year-on-year
in Q1 2025 to reach EGP 185.
· IDH served 1.9 million patients in the first three months of the
year, an 8% year-on-year decline as the anticipated slowdown associated with
Ramadan weighed on patient volumes in IDH's home and largest market of Egypt.
However, in line with IDH's long-term value extraction strategy, the Company
succeeded in further growing its average test per patient metric, which in Q1
2025 reached a record-high of 4.5 tests versus 4.3 this time last year. The
consistent increase in average tests per patient showcases the efficacy of
IDH's initiatives over the past several years, including its loyalty program
introduced in FY 2021.
iii. Updates by Geography
· In Egypt (82.7% of total revenue in Q1 2025), IDH reported
revenue of EGP 1,310 million, up 32% versus the first quarter of last year.
Top-line growth for the three-month period was supported by a 37% year-on-year
rise in average revenue per test reflecting the Company's strategic price
adjustments. Meanwhile, test and patient volumes at both the Company's
pathology and radiology segments declined marginally year-on-year reflecting
the anticipated slowdown associated with Ramadan. The Company expects volumes
to return to year-on-year growth in the coming months supported by the strong
underlying demand for IDH's value proposition witnessed over the last years.
· IDH's Jordanian subsidiary, Biolab (14.8% of total revenues in Q1
2025), recorded revenue in local currency terms of JOD 3.3 million in Q1 2025,
up 2.0% year-on-year. Revenue growth for the quarter was supported by an
impressive 16% year-on-year rise in test volumes, partially boosted by a
promotional campaign launched by Biolab during the three-month period. In EGP
terms, Biolab saw revenue for the first quarter climb 42% year-on-year to EGP
234 million.
· In Nigeria (1.8% of total revenues in Q1 2025), Echo-Lab reported
revenue of NGN 840 million, an increase of 39% from last year's first quarter
figure. Higher revenue reflected a 48% year-on-year rise in average revenue
per test in Naira terms as Echo-Lab continued to adjust prices to keep up with
inflation in the country. Above-average inflation continued to weigh on
patients' purchasing power with test and patient volumes declining 6% and 13%,
respectively, versus the same three months of last year. In EGP-terms, revenue
in Nigeria climbed an impressive 78% year-on-year to EGP 28 million in Q1
2025. It is important to note that Echo-lab turned EBITDA positive during the
first quarter of 2025, reflecting the success of IDH's revamped turnaround
strategy rolled out in the past year.
· Biolab KSA, IDH's newest venture in Saudi Arabia (0.7% of total
revenues in Q1 2025), reported revenue of SAR 0.8 million in Q1 2025 versus
SAR 0.6 million in Q4 2024 and SAR 0.5 million in Q3 2024. During the quarter,
IDH performed 28 thousand tests and served five thousand patients. It is worth
highlighting that test volumes continued to rise quarter-on-quarter despite
the anticipated slowdown in traffic linked with Ramadan weighing on volumes
during March. IDH views the Saudi Arabian market as an important driver of
future growth due to the market's large, growing, and increasingly
health-conscious population which is looking for access to high-quality
diagnostic services from a currently highly fragmented market. Over the coming
year, IDH plans to launch four additional branches in the country (taking the
total up to six), and leverage its expanded ownership stake8 to further
accelerate growth at its newest geography.
· In Q3 2024, IDH reopened one branch in Sudan after temporarily
shutting down all branches earlier in the year. It is worth highlighting that
the remaining 17 branches remain closed indefinitely as the civil conflict in
the country continues.
6 EBITDA is calculated as operating profit plus depreciation and amortization.
7 Normalised net profit excludes FX gains from both periods.
8 In December 2024, IDH announced the purchase of Izhoor's entire 49% stake in
the venture for USD 3.2 million, bringing IDH's effective stake in Biolab KSA
to 100% (79% controlled by IDH and 21% by its Jordanian subsidiary Biolab). It
is worth noting that Biolab KSA was originally launched as a joint venture
between IDH (30%), Biolab (21%), and Izhoor Holding Medical Company (49%) in
January 2024.
iv. Management Commentary
Commenting on the Group's Q1 2025 performance, IDH Chief Executive Officer Dr.
Hend El-Sherbini said: "We are happy to report a strong start to the new year
which saw us build on the progress made throughout 2024 to deliver robust
growth in our top-line and further improvements in our profitability. Our
performance for the first quarter sets the tone for what is to come in the
remainer of 2025 as we continue to generate incremental growth and value
across both our more established and newer markets.
In the first quarter, we witnessed improving operating conditions across
several of our chosen geographies. In our home market of Egypt, the positive
momentum seen in the second half of 2024 carried through to the new year. As
anticipated, starting in February inflation slowed substantially on the back
of a relatively stable Egyptian Pound (EGP) and a favourable base effect.
Lower inflation is expected to support a recovery in patients' purchasing
power following three tough years for Egyptian consumers. Encouraging
inflation readings were accompanied by the Central Bank of Egypt's (CBE) first
interest rate cut since November 2020, signalling widespread trust in the
positive trajectory undertaken by the Egyptian economy. It is worth noting
that results coming out of our Egyptian operations for the quarter partially
capture the impact of the anticipated slowdown associated with the holy month
of Ramadan, which started on March 1 this year as opposed to March 11 last
year. We expect this dip to normalise heading into the spring and summer
months, as our increasingly attractive and expanding value proposition
continues to drive up demand for our services.
Looking at our results in more detail, during the quarter we recorded revenue
of EGP 1.6 billion, up 35% year-on-year. Revenue growth was supported by
rising average revenue per test which more than offset the previously
mentioned temporary decline in patient traffic. During the quarter, we
succeeded in further growing our average test per patient metric, signalling
the rising attractiveness of our offering. More specifically, average tests
per patient reached a new record-high of 4.5 tests during the quarter, up from
4.3 this time last year, and 4.1 in Q1 2023.
On a geographic basis, Egypt continued to contribute the lion share of revenue
during the first three months of the year, expanding 32% versus the same
quarter of last year supported by strategic annual price adjustments
introduced at the start of the year. During the quarter, we continued to
invest in expanding and diversifying our patient touchpoints with our branch
network in the country reaching the 600-branch mark, up a notable 54 branches
from the end of the first quarter last year. Our scale and reach continue to
be key differentiating factors for the Group, enabling us to remain a step
ahead of the competition while allowing us to secure advantageous prices with
key test kit suppliers. In Jordan, we witnessed a strong 16% rise in test
volumes supported by a promotional campaign organised by Biolab. This helped
drive revenue growth in both local currency and EGP terms, of 2% and 42%,
respectively, for the quarter. In Nigeria, we also saw revenue rising in both
local currency and EGP terms supported by the price hikes introduced to shield
our operations from inflationary pressures. Our Nigeria operations turned
EBITDA positive during the first quarter of this year, showcasing the
effectiveness of our revamped turnaround strategy implemented at the start of
last year. Finally, in Saudi Arabia, we continued to see solid
quarter-on-quarter growth, with Biolab KSA's topline in local currency terms
expanding 31% versus the final quarter of last year. Perhaps even more
impressive was the sharp rise in test volumes, which stood at 28 thousand in
Q1 2025, surpassing the test volumes recorded during the previous quarter
despite Ramadan weighing on patient traffic during March. Supported by an
aggressive marketing and advertisement strategy, we are optimistic that we
will see accelerated growth at Biolab KSA throughout 2025, helping us to
establish the venture in the high-potential and currently very fragmented
Saudi market.
In line with our guidance, profitability continued to improve supported by our
comprehensive strategy focused on boosting operational efficiency while
keeping spending down. On the efficiencies front, the theme since the start of
2024 has been digitalisation, as we work to integrate new tools and solutions
across all aspects of our operations. Through these tools we are enhancing the
effectiveness of our decision-making and reporting processes, helping to
improve both the quality of our services and the way they are delivered.
Meanwhile, on the costs front, we were particularly pleased to note the sharp
decline in our raw materials to revenue ratio which reached 19.5% in Q1 2025
versus 21.1% this time last year. At the same time, our work to optimise
headcount over the course of 2024 continued to bear fruit with our salaries
and wages to revenue ratio remaining largely stable despite annual
compensation increases as part of our staff retention strategy. All in all,
these improvements translated in notable expansions in both our gross and
EBITDA margins for the three-month period. More specifically, in Q1 2025 we
saw our gross profit margin reach 39.8% versus 36.6% in Q1 2024, while our
EBITDA margin stood at 31.5% this year versus 28.2% in the corresponding
period of 2024. Finally, it is important to note that the contraction recorded
at our bottom-line reflects the significant boost to net profit from FX gains
during the first quarter of last year. Controlling for this, we reported an
impressive five-percentage-point expansion in our normalised net profit
margin,9 with normalised net profit more than doubling versus the previous
year supported by the above-mentioned initiatives.
Looking ahead, we are particularly excited about the ramp up of our Saudi
venture. 2025 will be a pivotal year for Biolab KSA and we are confident in
our team's ability to deliver on our ambitious ramp up strategy in the
Kingdom. At the same time, we remain focused driving growth across our more
established markets capitalising on improving market conditions and our
market-leading position. In light of our strong start to the year and the
improving operating conditions, we see revenue growth for the year coming in
above 30% in FY 2025. Similarly, we see profitability continuing to improve
with our full-year EBITDA margin coming in north of 30%."
9Normalised net profit excludes FX gains from both periods.
- End -
Analyst and Investor Call Details
An analyst and investor call will be hosted at 13:00 pm (UK) | 15:00 (Egypt)
on Monday, 2 June 2025. You can learn more details and register for the call
by clicking on this link
(https://s3.amazonaws.com/resources.inktankir.com/idh/IDH-1Q25-results-conference-call.pdf)
.
For more information about the event, please contact: amoataz@EFG-HERMES.com
(mailto:amoataz@EFG-HERMES.com)
About Integrated Diagnostics Holdings (IDH)
IDH is a leading diagnostics services provider in the Middle East and Africa
offering a broad range of clinical pathology and radiology tests to patients
in Egypt, Jordan, Nigeria, Saudi Arabia, and Sudan. The Group's core brands
include Al Borg, Al Borg Scan and Al Mokhtabar in Egypt, as well as Biolab
(Jordan), Echo-Lab (Nigeria), Ultralab and Al Mokhtabar Sudan (both in Sudan),
and Biolab KSA (Saudi Arabia). With over 40 years of experience, a long track
record for quality and safety has earned the Company a trusted reputation, as
well as internationally recognised accreditations for its portfolio of over
3,000 diagnostics tests. From its base of 628 branches as of 31 December 2024,
IDH served over 8.9 million patients and performed more than 39.2 million
tests in 2024. IDH will continue to add laboratories through a Hub, Spoke and
Spike business model that provides a scalable platform for efficient
expansion. Beyond organic growth, the Group targets expansion in appealing
markets, including acquisitions in the Middle Eastern, African, and East Asian
markets where its model is well-suited to capitalise on similar healthcare and
consumer trends and capture a significant share of fragmented markets. IDH has
been a Jersey-registered entity (i) whose shares are admitted to the equity
shares (transition) category (previously, the standard listing segment) of the
Official List of the UK Financial Conduct Authority and admitted to trading on
the main market for listed securities of the London Stock Exchange (ticker:
IDHC) since May 2015.
Shareholder Information
LSE: IDHC.L
Bloomberg: IDHC:LN
Listed on LSE: May 2015
Shares Outstanding: 581,326,272
Contact
Tarek Yehia
Investor Relations Director
T: +20 (0)2 3332 1126 | M: +20 10 6882 6678 | tarek.yehia@idhcorp.com
(mailto:tarek.yehia@idhcorp.com)
Forward-Looking Statements
These results for the year ended 31 March 2025 have been prepared solely to
provide additional information to shareholders to assess the group's
performance in relation to its operations and growth potential. These results
should not be relied upon by any other party or for any other reason. This
communication contains certain forward-looking statements. A forward-looking
statement is any statement that does not relate to historical facts and
events, and can be identified by the use of such words and phrases as
"according to estimates", "aims", "anticipates", "assumes", "believes",
"could", "estimates", "expects", "forecasts", "intends", "is of the opinion",
"may", "plans", "potential", "predicts", "projects", "should", "to the
knowledge of", "will", "would" or, in each case their negatives or other
similar expressions, which are intended to identify a statement as
forward-looking. This applies, in particular, to statements containing
information on future financial results, plans, or expectations regarding
business and management, future growth or profitability and general economic
and regulatory conditions and other matters affecting the Group.
Forward-looking statements reflect the current views of the Group's management
("Management") on future events, which are based on the assumptions of the
Management and involve known and unknown risks, uncertainties and other
factors that may cause the Group's actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements. The
occurrence or non-occurrence of an assumption could cause the Group's actual
financial condition and results of operations to differ materially from, or
fail to meet expectations expressed or implied by, such forward-looking
statements.
The Group's business is subject to a number of risks and uncertainties that
could also cause a forward-looking statement, estimate or prediction to differ
materially from those expressed or implied by the forward-looking statements
contained in this communication. The information, opinions and forward-looking
statements contained in this communication speak only as at its date and are
subject to change without notice. The Group does not undertake any obligation
to review, update, confirm or to release publicly any revisions to any
forward-looking statements to reflect events that occur or circumstances that
arise in relation to the content of this communication.
Group Operational & Financial Review
i. Revenue and Cost Analysis
Consolidated Revenue
IDH started the new year on a strong note, delivering a 35% year-on-year
expansion in revenue. Top-line growth for the three-month period was driven by
higher average revenue per test, which expanded 37% versus Q1 2024 on the back
of the strategic annual price adjustments introduced by the Group across
several of its markets. Meanwhile, test and patient volumes were impacted by
the anticipated seasonal slowdown associated with Ramadan. More specifically,
IDH performed 1% less tests and served 8% less patients in Q1 2025 versus the
same three months of the previous year. Volumes are set to return to
year-on-year growth in the spring and summer months.
Q1 2024 Q1 2025 Change
Revenue (EGP mn) 1,171 1,583 35%
Tests performed (mn) 8.7 8.6 -1%
Revenue per test (EGP) 135 185 37%
Revenue Analysis: Contribution by Patient Segment
Contract Segment (68% of Group revenue in Q1 2025)
At IDH's contract segment, revenue came in at EGP 1,074 million in Q1 2025, up
39% from the same period of the previous year. Growth was price-driven, with
average revenue per test rising 41% year-on-year during the three-month
period. Meanwhile, test volumes declined 2% year-on-year reflecting the
anticipated seasonal slowdown.
Average tests per patient continued to grow, reaching a new record-high of 4.7
tests per patient in Q1 2025, up from 4.4 in Q1 2024 and 4.3 in Q1 2023. This
steady rise has been supported by IDH's loyalty program, which was introduced
back in 2021, and which has, since then, successfully increased tests demanded
by patients visiting IDH's branches.
Walk-in Segment (32% of Group revenue in Q1 2025)
At IDH's walk-in segment, revenue recorded EGP 509 million in the first
quarter of the new year, representing a year-on-year increase of 28%. During
the quarter, IDH recorded a slight uptick in test volumes which expanded 1%
year-on-year to reach 1.4 million. Meanwhile, average revenue per test also
climbed a solid 27% to reach EGP 361 for the period. Finally, average tests
per patient at the segment recorded 3.7 in Q1 2025, up from 3.5 in the same
quarter of the previous year.
Revenue Analysis: Contribution by Patient Segment
Contract Segment (68% of Group revenue in Q1 2025)
At IDH's contract segment, revenue came in at EGP 1,074 million in Q1 2025, up
39% from the same period of the previous year. Growth was price-driven, with
average revenue per test rising 41% year-on-year during the three-month
period. Meanwhile, test volumes declined 2% year-on-year reflecting the
anticipated seasonal slowdown.
Average tests per patient continued to grow, reaching a new record-high of 4.7
tests per patient in Q1 2025, up from 4.4 in Q1 2024 and 4.3 in Q1 2023. This
steady rise has been supported by IDH's loyalty program, which was introduced
back in 2021, and which has, since then, successfully increased tests demanded
by patients visiting IDH's branches.
Walk-in Segment (32% of Group revenue in Q1 2025)
At IDH's walk-in segment, revenue recorded EGP 509 million in the first
quarter of the new year, representing a year-on-year increase of 28%. During
the quarter, IDH recorded a slight uptick in test volumes which expanded 1%
year-on-year to reach 1.4 million. Meanwhile, average revenue per test also
climbed a solid 27% to reach EGP 361 for the period. Finally, average tests
per patient at the segment recorded 3.7 in Q1 2025, up from 3.5 in the same
quarter of the previous year.
Detailed Segment Performance Breakdown
Walk-in Segment Contract Segment Total
1Q24 1Q25 Change 1Q24 1Q25 Change 1Q24 1Q25 Change
Revenue (EGP mn) 396 509 28% 775 1,074 39% 1,171 1,583 35%
% of revenue 34% 32% 66% 68%
Patients ('000) 395 377 -5% 1,643 1,504 -8% 2,038 1,882 -8%
% of patients 19% 20% 81% 80%
Revenue per Patient (EGP) 1,002 1,349 35% 471 712 51% 574 839 46%
Tests ('000) 1,399 1,411 1% 7,284 7,143 -2% 8,683 8,555 -1%
% of Tests 16% 16% 84% 84%
Revenue per Test (EGP) 283 361 27% 106 150 41% 135 185 37%
Test per Patient 3.5 3.7 6% 4.4 4.7 7% 4.3 4.5 6%
Revenue Analysis: Contribution by Geography
Egypt (82.7% of Group revenue in Q1 2025)
IDH's home and largest market, Egypt, maintained its strong growth momentum,
reporting revenue of EGP 1,310 million in the first three months of the year.
This represents a year-on-year expansion of 32% on the back of a 37%
year-on-year rise in average revenue per test during the quarter. Meanwhile,
test and patient volumes declined as Ramadan weighed on patient traffic during
the entire month of March. More specifically, during Q1 2025, across IDH's
Egyptian operations test performed declined 3% year-on-year while patients
served decreased by 8% year-on-year.
Al-Borg Scan
IDH's rapidly growing radiology venture, Al-Borg Scan, recorded revenue growth
for the quarter of 12% as higher average revenue per test (up 34%
year-on-year) more than offset a decline in test and patient volumes for the
three-month period. Despite the temporary slowdown, which reflects the impact
of Ramadan on traffic, the venture remains on its growth trajectory and its
contribution to Egypt's results is anticipated to rise further as the year
progresses.
House Calls
During the first quarter of 2025, IDH's house call services continued to make
remarkable contributions to IDH's consolidated revenue. More specifically,
business generated by the service in Egypt made up 21% of the country's
revenue in the three months ended 31 March 2025, well above the service's
contribution prior to the Covid-19 pandemic. The robust contribution
highlights the segment's growth potential and the efficacy of the Group's
post-pandemic strategy.
Wayak
Finally, Wayak, which leverages the Company's expanding patient database to
develop electronic medical records and provide personalized services, reported
revenue of EGP 7 million for the quarter, more than double last year's figure.
Revenue growth was driven by the 25% year-on-year growth in orders fulfilled,
which reached 64 thousand for the quarter.
Detailed Egypt Performance Breakdown
Q1 2024 Q1 2025 Change
Revenue (EGP mn) 989 1,310 32%
Pathology Revenue (contribution to Egypt's results) 939 (94.9%) 1,253 (95.7%) 34%
Radiology Revenue (contribution to Egypt's results) 50 (5.1%) 56 (4.3%) 12%
Tests performed (mn) 8.1 7.8 -3%
Revenue per test (EGP) 123 168 37%
Jordan (14.8% of Group revenue in Q1 2025)
In IDH's second largest market, Jordan, Biolab reported revenue in local
currency terms of JOD 3.3 million in Q1 2025, up 2.0% year-on-year. Revenue
growth for the quarter was supported by an impressive rise in test volumes
which increased 16% versus the same quarter of last year. Test volumes were
boosted by a new promotional campaign launched by Biolab during the quarter.
Meanwhile, average revenue per test in local currency terms declined 12%
partially reflecting the impact of discounts offered to patients as part of
the previously mentioned campaign. In EGP terms, Biolab saw revenue for the
first quarter climb 42% year-on-year to EGP 234 million.
Detailed Jordan Performance Breakdown
Q1 2024 Q1 2025 Change
Revenue (EGP mn) 165 234 42%
Revenue (JOD mn) 3.2 3.3 2%
Tests performed (mn) 566 658 16%
Revenue per test (EGP) 292 356 22%
Nigeria (1.8% of Group revenue in Q1 2025)
Echo-Lab, IDH's Nigerian subsidiary, reported revenue of NGN 840 million, an
increase of 39% from last year's first quarter figure. Higher revenue
reflected a 48% year-on-year increase in average revenue per test in Naira
terms as Echo-Lab continued to hike prices to keep up with inflation.
Above-average inflation continued to weigh on patients' purchasing power with
test and patient volumes declining 6% and 13%, respectively, versus the same
three months of last year. In EGP-terms, revenue in Nigeria grew an impressive
78% year-on-year to EGP 28 million in Q1 2025.
Saudi Arabia (0.7% of Group revenue in Q1 2025)
Biolab KSA, IDH's newest venture in Saudi Arabia, reported revenue of SAR 0.8
million in Q1 2025 versus SAR 0.6 million in Q4 2024 and SAR 0.5 million in Q3
2024. During the quarter, IDH performed 28 thousand tests and served five
thousand patients. In EGP terms, revenue for the first quarter recorded EGP 11
million, with Biolab KSA's contribution to IDH's top-line increasing further
in line with expectations.
Sudan
In Q3 2024, IDH reopened one branch in Sudan after temporarily shutting down
all branches earlier this year. It is worth noting that the remaining 17
branches remain closed indefinitely as the civil conflict in the country
continues.
Jordan (14.8% of Group revenue in Q1 2025)
In IDH's second largest market, Jordan, Biolab reported revenue in local
currency terms of JOD 3.3 million in Q1 2025, up 2.0% year-on-year. Revenue
growth for the quarter was supported by an impressive rise in test volumes
which increased 16% versus the same quarter of last year. Test volumes were
boosted by a new promotional campaign launched by Biolab during the quarter.
Meanwhile, average revenue per test in local currency terms declined 12%
partially reflecting the impact of discounts offered to patients as part of
the previously mentioned campaign. In EGP terms, Biolab saw revenue for the
first quarter climb 42% year-on-year to EGP 234 million.
Detailed Jordan Performance Breakdown
Q1 2024 Q1 2025 Change
Revenue (EGP mn) 165 234 42%
Revenue (JOD mn) 3.2 3.3 2%
Tests performed (mn) 566 658 16%
Revenue per test (EGP) 292 356 22%
Nigeria (1.8% of Group revenue in Q1 2025)
Echo-Lab, IDH's Nigerian subsidiary, reported revenue of NGN 840 million, an
increase of 39% from last year's first quarter figure. Higher revenue
reflected a 48% year-on-year increase in average revenue per test in Naira
terms as Echo-Lab continued to hike prices to keep up with inflation.
Above-average inflation continued to weigh on patients' purchasing power with
test and patient volumes declining 6% and 13%, respectively, versus the same
three months of last year. In EGP-terms, revenue in Nigeria grew an impressive
78% year-on-year to EGP 28 million in Q1 2025.
Saudi Arabia (0.7% of Group revenue in Q1 2025)
Biolab KSA, IDH's newest venture in Saudi Arabia, reported revenue of SAR 0.8
million in Q1 2025 versus SAR 0.6 million in Q4 2024 and SAR 0.5 million in Q3
2024. During the quarter, IDH performed 28 thousand tests and served five
thousand patients. In EGP terms, revenue for the first quarter recorded EGP 11
million, with Biolab KSA's contribution to IDH's top-line increasing further
in line with expectations.
Sudan
In Q3 2024, IDH reopened one branch in Sudan after temporarily shutting down
all branches earlier this year. It is worth noting that the remaining 17
branches remain closed indefinitely as the civil conflict in the country
continues.
Revenue Contribution by Country
Q1 2024 Q1 2025 Change
Egypt Revenue (EGP mn) 989 1,310 32%
Pathology Revenue (EGP mn) 939 1,253 34%
Radiology Revenue (EGP mn) 50 56 12%
Egypt Contribution to IDH Revenue 84.5% 82.7%
Jordan Revenue (EGP mn) 165 234 42%
Jordan Revenues (JOD mn) 3.2 3.3 2%
Jordan Revenue Contribution to IDH Revenue 14.1% 14.8%
Nigeria Revenue (EGP mn) 16 28 78%
Nigeria Revenue (NGN mn) 602 840 39%
Nigeria Contribution to IDH Revenue 1.3% 1.8%
Saudi Arabia Revenue (EGP mn) 1 11 N/A
Saudi Arabia Revenue (SAR mn) 0.1 0.8 N/A
Saudi Arabia Contribution to IDH Revenue 0.1% 0.7%
Average Exchange Rate
Q1 2024 Q1 2025 Change
USD/EGP 36.3 50.4 39%
JOD/EGP 51.1 71.0 39%
NGN/EGP 0.026 0.033 28%
SAR/EGP 0.060 0.084 39%
Patients Served and Tests Performed by Country
Q1 2024 Q1 2025 Change
Egypt Patients Served (mn) 1.9 1.8 -8%
Egypt Tests Performed (mn) 8.1 7.8 -3%
Jordan Patients Served (k) 85 85 1%
Jordan Tests Performed (k) 566 658 16%
Nigeria Patients Served (k) 30 26 -13%
Nigeria Tests Performed (k) 56 53 -6%
Saudi Arabia Patients Served (k) 0.2 5 N/A
Saudi Arabia Tests Performed (k) 2 28 N/A
Total Patients Served (mn) 2.0 1.9 -8%
Total Tests Performed (mn) 8.7 8.6 -1%
Operational Branches by Country
31 March 2024 31 March 2025 Change
Egypt 546 600 +54
Jordan 27 26 -1
Nigeria 12 12 -
KSA 2 2 -
Sudan 0 1 +1
Total 587 641 +54
Cost of Goods Sold (COGS)
IDH's COGS reached EGP 952 million in the first three months of 2025, a
year-on-year growth of 28%. Meanwhile, as a percentage of consolidate revenue,
COGS declined to 60% from 63% in the same quarter a year ago, reflecting
Company-wide efforts to boost efficiencies and maintain a tight grip on
expenses. More specifically, as a share of revenue, IDH reported substantial
decreases in its raw material outlays and depreciation expenses during the
first quarter of the year.
COGS Breakdown as a Percentage of Revenue
Q1 2024 Q1 2025
Raw Materials 21.1% 19.5%
Wages & Salaries 19.6% 20.1%
Depreciation & Amortisation 8.6% 7.8%
Other Expenses 14.1% 12.8%
Total 63.4% 60.2%
Wages and salaries, which include employee share of profits (33% share of
consolidated COGS in Q1 2025), stood as the largest contributor to COGS for
the quarter having posted a year-on-year expansion of 39% reflecting mostly
annual compensation adjustments as part of IDH's staff retention strategy.
Despite the year-on-year rise, as a percentage of revenue direct wages and
salaries only increased half a percentage point year-on-year to 20.1%
reflecting IDH's continued efforts to optimise headcount.
Direct Wages and Salaries by Region
Q1 2024 Q1 2025 Change
Egypt (EGP mn) 174 239 37%
Jordan (EGP mn) 46 67 44%
Jordan (JOD mn) 911 944 4%
Nigeria (EGP mn) 5 6 32%
Nigeria (NGN mn) 176 182 4%
Saudi Arabia (EGP mn) 5.1 6.7 33%
Saudi Arabia (SAR k) 517 499 -3%
Raw material costs (32% of consolidated COGS in Q1 2025) was the second
largest contributor to COGS for the three-month period, having increased just
25% year-on-year to reach EGP 308 million. As a share of revenue, raw material
expenses declined remarkably to 19.5% in Q1 2025 from 21.1% this time last
year. The decline reflects IDH's proactive inventory management strategy which
sees the Company leverage its scale to secure advantageous prices for its
testing kits.
Direct depreciation and amortization costs (13% of consolidated COGS in Q1
2025) rose 23% year-on-year to EGP 123 million in Q1 2025. Rising depreciation
expenses are linked to IDH's expansion efforts, which in the year to 31 March
2025 saw the Company add 54 new branches in its home market of Egypt. However,
as a percentage of revenue, direct depreciation and amortization declined to
7.8% in Q1 2025 from 8.6% in Q1 2024.
Other expenses (21% of consolidated COGS in Q1 2025) recorded EGP 202 million
in the first three months of 2025, representing a year-on-year rise of 23%.
Meanwhile, other expenses as a percentage of revenue stood at 12.8% down
significantly from the 14.1% figure reported this time last year. The main
components making up other expenses during the past quarter were repair and
maintenance fees, hospital contracts, cleaning costs, transportation,
utilities, and license expenses.
Gross Profit
IDH recorded a gross profit of EGP 631 million in Q1 2025, representing a
year-on-year rise of 47%. Similarly, IDH's gross profit margin (GPM) expanded
by a notable three percentage points primarily reflecting lower raw material
outlays, as the Group continued to leverage its supplier relationships to
secure favourable prices for its inventory, and lower depreciation charges as
a share of revenue, reflecting enhanced fixed asset utilization.
Selling, General, and Administrative (SG&A) Expenses
SG&A outlays for the quarter came in at EGP 265 million, up 28% from the
first quarter of last year. However, as a percentage of revenues, SG&A
accounted for 17%, down from 18% this time last year. The rise in SG&A
expenses was mainly due to:
· Indirect wages and salaries reached EGP 123 million in Q1 2025,
representing a 55% increase compared to the same quarter of the previous year.
The increase reflects annual wage increases, the translation effect from
Jordanian and Saudi Arabian salaries due to a weakened EGP, and new hires to
support Biolab KSA's expansion who, for the most part, were onboarded in May
2024.
· Other SG&A expenses increased by 29% year-on-year to EGP 95 million,
primarily due to increased consulting fees (which are quoted in foreign
currency) and higher external doctor fees.
· Advertising expenses rose by 74% year-on-year as the Company continued
to invest in the ramp-up of its operations in Saudi Arabia and doubled down on
its advertising and marketing efforts in its home market of Egypt.
Selling, General, and Administrative Expenses
EGP mn Q1 2024 Q1 2025 Change
Wages and Salaries 79 123 55%
Accounting and Professional Fees 20 41 106%
Market - Advertisement Expenses 25 43 74%
Other Expenses - Operation 45 46 1%
Depreciation and Amortisation 10 10 1%
Impairment Loss on Trade and Other Receivables 17 7 -60%
Travelling and Transportation Expenses 9 8 -7%
Impairment in Inventory - 1 N/A
Provision no Longer Required - (0.4) N/A
Provision for End of Service - 1 N/A
Provision for Legal Claims - 1 N/A
Other Income 3 (14) -545%
Total 208 265 28%
EBITDA
IDH reported an EBITDA of EGP 498 million in Q1 2025, a year-on-year
improvement of 51% on the back of robust revenue growth and improved cost
efficiencies at both the COGS and SG&A levels. EBITDA margin stood at 31%
in Q1 2025 up three percentage points year-on-year. Improvements in EBITDA
profitability were also partially supported by a significant decline in
provision charges for doubtful accounts on the back of improving market
conditions and the successful rollout in May of last year of a new incentive
program for IDH's staff to boost collections. It is worth noting that during
the quarter, IDH's Nigerian operations turned EBITDA positive, achieving a key
milestone in the venture's revamped turnaround plan launched last year.
EBITDA by Country
In Egypt, IDH recorded an EBITDA of EGP 444 million, up 39% year-on-year and
with an associated margin of 34% versus 32% in Q1 2024. Improved EBITDA
profitability came on the back of both enhanced gross profitability in the
country (GPM at 44% in Q1 2025 versus 40% in Q1 2024), combined with optimised
SG&A expenses for the quarter.
In Jordan, Biolab's EBITDA grew 15% year-on-year to reach JOD 0.9 million in
the first three months of the year. EBITDA margin for the quarter recorded
26%, up from last year's 23% margin. In EGP terms, EBITDA recorded EGP 61
million, up 57% year-on-year, partially due to the translation effect from a
weaker EGP.
In Nigeria, Echo-Lab turned EBITDA positive in Q1 2025, reporting an EBITDA of
NGN 65 million versus an EBITDA loss of NGN 244 million this time last year.
The venture's EBITDA margin stood at 8% for the quarter. In EGP terms, EBITDA
recorded EGP 2 million in Q1 2025 versus an EBITDA loss of EGP 7 million in Q1
2024.
In Saudi Arabia, EBITDA losses amounted to SAR 1.0 million (EGP 14 million) as
the business remains in its ramp up phase. EBITDA losses were down
year-on-year compared to the SAR 2.3 million booked this time last year.
Regional EBITDA in Local Currency
Q1 2024 Q1 2025 Change
Egypt EBITDA (EGP mn) 320 444 39%
Margin 32.3% 33.9% 1.6 pts.
Jordan EBITDA (JOD mn) 0.8 0.9 15%
Margin 23.3% 26.2% 2.9 pts.
Nigeria EBITDA (NGN mn) (244) 65 N/A
Margin -41% 8% N/A
Saudi Arabia EBITDA (SAR mn) (2.3) (1.0) -55%
Margin - -125%
Interest Income / Expense
IDH's interest income came in at EGP 54 million in Q1 2025, more than doubling
from last year's first quarter figure of EGP 25 million. Higher interest
income reflects higher interest rates in Egypt. It is worth noting that in
April 2025, the Central Bank of Egypt (CBE) cut interest rates for the first
time since November 2020 following multiple positive inflation readings since
the start of the year. Following rate cuts in both April and May 2025 for a
cumulative 325 basis points, the main operations rate in Egypt currently
stands at 24.5%.
Interest expense10 recorded EGP 48 million in Q1 2025, up just 10%
year-on-year. The rise in interest expenses was mainly driven by:
· Higher interest on lease liabilities related to IFRS 16 due to
the addition of new branches to IDH's network.
· Higher bank charges which increased to EGP 5 million in Q1 2025 from
EGP 3 million this time last year reflecting higher revenue for the quarter.
It is worth noting that interest expense on borrowing during the first quarter
of the year declined 15% year-on-year to EGP 5 million. It is important to
note that IDH's interest bearing debt1(1) (excluding accrued interest)
decreased during Q1 2025 to reach EGP 243 million as at 31 March 2025, from
EGP 265 million at year-end 2024. The decline comes as loans related to Biolab
and Al-Borg Scan were successfully repaid.
Interest Expense Breakdown
EGP mn Q1 2024 Q1 2025 Change
Interest on Financial Obligations 26 31 19%
Interest Expenses on Leases 7 7 -3%
Interest Expenses on Borrowings12 6 5 -15%
Bank Charges 3 5 61%
Fast Track Payment 2 - N/A
Total Interest Expense 44 48 10%
Foreign Exchange13
IDH booked a foreign exchange gain of EGP 31 million in Q1 2025, down
substantially from the EGP 301 million booked during the same quarter of the
previous year. The foreign exchange gain relates to intercompany balances
revaluation in entities where the balance was in a currency different to the
functional currency.
Taxation
Tax expenses, including income and deferred tax, stood at EGP 152 million in
Q1 2025, 50% above last year's first quarter figure. IDH's effective tax rate
increased significantly versus the same quarter of last year, reaching 38% in
Q1 2025 versus 20% this time last year. The increase reflects a normalisation
in foreign exchange gain recorded during the quarter. It is important to
highlight that there is no tax payable for IDH's two holding-level companies.
Taxation Breakdown by Region
EGP mn Q1 2024 Q1 2025 Change
Egypt 91 145 59%
Jordan 10 5 -48%
Nigeria 0.1 0.1 -24%
KSA - 2 N/A
Total Tax Expenses 101 152 50%
Net Profit
IDH recorded net profit of EGP 245 million in Q1 2025, down from last year's
EGP 402 million figure. It is worth noting that last year's bottom-line had
been significantly boosted by foreign exchange gains booked by the company
during Q1 2024. Meanwhile, the Company's NPM came in at 15% in Q1 2025
compared to 34% in the same period of last year.
When controlling for contributions from foreign exchange gains during both
years, IDH booked an adjusted net profit of EGP 214 million in Q1 2025,
growing 114% year-on-year from EGP 100 million during the first quarter of
last year. The Company's adjusted net profit margin stood at 14% during Q1
2025, up from 9% this time last year.
10 Interest expenses on medium-term loans include EGP 4 million (EGP 5 million
in Q1 2024) related to the Group's facility with Ahli United Bank Egypt
(AUBE).
1(1) IDH's interest bearing debt as at 31 March 2025 included EGP 54 million
(EGP 67 million as at 31 March 2024) related to its facility with Ahli United
Bank Egypt (AUBE) (outstanding loan balances are excluding accrued interest
for the period).
1(2)Interest expenses on medium-term loans include EGP 4 million (EGP 5
million in Q1 2024) related to the Group's facility with Ahli United Bank
Egypt (AUBE).
1(3)Foreign exchange gains/losses are included within finance income/costs for
both periods.
Wages and salaries, which include employee share of profits (33% share of
consolidated COGS in Q1 2025), stood as the largest contributor to COGS for
the quarter having posted a year-on-year expansion of 39% reflecting mostly
annual compensation adjustments as part of IDH's staff retention strategy.
Despite the year-on-year rise, as a percentage of revenue direct wages and
salaries only increased half a percentage point year-on-year to 20.1%
reflecting IDH's continued efforts to optimise headcount.
Direct Wages and Salaries by Region
Q1 2024 Q1 2025 Change
Egypt (EGP mn) 174 239 37%
Jordan (EGP mn) 46 67 44%
Jordan (JOD mn) 911 944 4%
Nigeria (EGP mn) 5 6 32%
Nigeria (NGN mn) 176 182 4%
Saudi Arabia (EGP mn) 5.1 6.7 33%
Saudi Arabia (SAR k) 517 499 -3%
Raw material costs (32% of consolidated COGS in Q1 2025) was the second
largest contributor to COGS for the three-month period, having increased just
25% year-on-year to reach EGP 308 million. As a share of revenue, raw material
expenses declined remarkably to 19.5% in Q1 2025 from 21.1% this time last
year. The decline reflects IDH's proactive inventory management strategy which
sees the Company leverage its scale to secure advantageous prices for its
testing kits.
Direct depreciation and amortization costs (13% of consolidated COGS in Q1
2025) rose 23% year-on-year to EGP 123 million in Q1 2025. Rising depreciation
expenses are linked to IDH's expansion efforts, which in the year to 31 March
2025 saw the Company add 54 new branches in its home market of Egypt. However,
as a percentage of revenue, direct depreciation and amortization declined to
7.8% in Q1 2025 from 8.6% in Q1 2024.
Other expenses (21% of consolidated COGS in Q1 2025) recorded EGP 202 million
in the first three months of 2025, representing a year-on-year rise of 23%.
Meanwhile, other expenses as a percentage of revenue stood at 12.8% down
significantly from the 14.1% figure reported this time last year. The main
components making up other expenses during the past quarter were repair and
maintenance fees, hospital contracts, cleaning costs, transportation,
utilities, and license expenses.
Gross Profit
IDH recorded a gross profit of EGP 631 million in Q1 2025, representing a
year-on-year rise of 47%. Similarly, IDH's gross profit margin (GPM) expanded
by a notable three percentage points primarily reflecting lower raw material
outlays, as the Group continued to leverage its supplier relationships to
secure favourable prices for its inventory, and lower depreciation charges as
a share of revenue, reflecting enhanced fixed asset utilization.
Selling, General, and Administrative (SG&A) Expenses
SG&A outlays for the quarter came in at EGP 265 million, up 28% from the
first quarter of last year. However, as a percentage of revenues, SG&A
accounted for 17%, down from 18% this time last year. The rise in SG&A
expenses was mainly due to:
· Indirect wages and salaries reached EGP 123 million in Q1 2025,
representing a 55% increase compared to the same quarter of the previous year.
The increase reflects annual wage increases, the translation effect from
Jordanian and Saudi Arabian salaries due to a weakened EGP, and new hires to
support Biolab KSA's expansion who, for the most part, were onboarded in May
2024.
· Other SG&A expenses increased by 29% year-on-year to EGP 95 million,
primarily due to increased consulting fees (which are quoted in foreign
currency) and higher external doctor fees.
· Advertising expenses rose by 74% year-on-year as the Company continued
to invest in the ramp-up of its operations in Saudi Arabia and doubled down on
its advertising and marketing efforts in its home market of Egypt.
Selling, General, and Administrative Expenses
EGP mn Q1 2024 Q1 2025 Change
Wages and Salaries 79 123 55%
Accounting and Professional Fees 20 41 106%
Market - Advertisement Expenses 25 43 74%
Other Expenses - Operation 45 46 1%
Depreciation and Amortisation 10 10 1%
Impairment Loss on Trade and Other Receivables 17 7 -60%
Travelling and Transportation Expenses 9 8 -7%
Impairment in Inventory - 1 N/A
Provision no Longer Required - (0.4) N/A
Provision for End of Service - 1 N/A
Provision for Legal Claims - 1 N/A
Other Income 3 (14) -545%
Total 208 265 28%
EBITDA
IDH reported an EBITDA of EGP 498 million in Q1 2025, a year-on-year
improvement of 51% on the back of robust revenue growth and improved cost
efficiencies at both the COGS and SG&A levels. EBITDA margin stood at 31%
in Q1 2025 up three percentage points year-on-year. Improvements in EBITDA
profitability were also partially supported by a significant decline in
provision charges for doubtful accounts on the back of improving market
conditions and the successful rollout in May of last year of a new incentive
program for IDH's staff to boost collections. It is worth noting that during
the quarter, IDH's Nigerian operations turned EBITDA positive, achieving a key
milestone in the venture's revamped turnaround plan launched last year.
EBITDA by Country
In Egypt, IDH recorded an EBITDA of EGP 444 million, up 39% year-on-year and
with an associated margin of 34% versus 32% in Q1 2024. Improved EBITDA
profitability came on the back of both enhanced gross profitability in the
country (GPM at 44% in Q1 2025 versus 40% in Q1 2024), combined with optimised
SG&A expenses for the quarter.
In Jordan, Biolab's EBITDA grew 15% year-on-year to reach JOD 0.9 million in
the first three months of the year. EBITDA margin for the quarter recorded
26%, up from last year's 23% margin. In EGP terms, EBITDA recorded EGP 61
million, up 57% year-on-year, partially due to the translation effect from a
weaker EGP.
In Nigeria, Echo-Lab turned EBITDA positive in Q1 2025, reporting an EBITDA of
NGN 65 million versus an EBITDA loss of NGN 244 million this time last year.
The venture's EBITDA margin stood at 8% for the quarter. In EGP terms, EBITDA
recorded EGP 2 million in Q1 2025 versus an EBITDA loss of EGP 7 million in Q1
2024.
In Saudi Arabia, EBITDA losses amounted to SAR 1.0 million (EGP 14 million) as
the business remains in its ramp up phase. EBITDA losses were down
year-on-year compared to the SAR 2.3 million booked this time last year.
Regional EBITDA in Local Currency
Q1 2024 Q1 2025 Change
Egypt EBITDA (EGP mn) 320 444 39%
Margin 32.3% 33.9% 1.6 pts.
Jordan EBITDA (JOD mn) 0.8 0.9 15%
Margin 23.3% 26.2% 2.9 pts.
Nigeria EBITDA (NGN mn) (244) 65 N/A
Margin -41% 8% N/A
Saudi Arabia EBITDA (SAR mn) (2.3) (1.0) -55%
Margin - -125%
Interest Income / Expense
IDH's interest income came in at EGP 54 million in Q1 2025, more than doubling
from last year's first quarter figure of EGP 25 million. Higher interest
income reflects higher interest rates in Egypt. It is worth noting that in
April 2025, the Central Bank of Egypt (CBE) cut interest rates for the first
time since November 2020 following multiple positive inflation readings since
the start of the year. Following rate cuts in both April and May 2025 for a
cumulative 325 basis points, the main operations rate in Egypt currently
stands at 24.5%.
Interest expense10 recorded EGP 48 million in Q1 2025, up just 10%
year-on-year. The rise in interest expenses was mainly driven by:
· Higher interest on lease liabilities related to IFRS 16 due to
the addition of new branches to IDH's network.
· Higher bank charges which increased to EGP 5 million in Q1 2025 from
EGP 3 million this time last year reflecting higher revenue for the quarter.
It is worth noting that interest expense on borrowing during the first quarter
of the year declined 15% year-on-year to EGP 5 million. It is important to
note that IDH's interest bearing debt1(1) (excluding accrued interest)
decreased during Q1 2025 to reach EGP 243 million as at 31 March 2025, from
EGP 265 million at year-end 2024. The decline comes as loans related to Biolab
and Al-Borg Scan were successfully repaid.
Interest Expense Breakdown
EGP mn Q1 2024 Q1 2025 Change
Interest on Financial Obligations 26 31 19%
Interest Expenses on Leases 7 7 -3%
Interest Expenses on Borrowings12 6 5 -15%
Bank Charges 3 5 61%
Fast Track Payment 2 - N/A
Total Interest Expense 44 48 10%
Foreign Exchange13
IDH booked a foreign exchange gain of EGP 31 million in Q1 2025, down
substantially from the EGP 301 million booked during the same quarter of the
previous year. The foreign exchange gain relates to intercompany balances
revaluation in entities where the balance was in a currency different to the
functional currency.
Taxation
Tax expenses, including income and deferred tax, stood at EGP 152 million in
Q1 2025, 50% above last year's first quarter figure. IDH's effective tax rate
increased significantly versus the same quarter of last year, reaching 38% in
Q1 2025 versus 20% this time last year. The increase reflects a normalisation
in foreign exchange gain recorded during the quarter. It is important to
highlight that there is no tax payable for IDH's two holding-level companies.
Taxation Breakdown by Region
EGP mn Q1 2024 Q1 2025 Change
Egypt 91 145 59%
Jordan 10 5 -48%
Nigeria 0.1 0.1 -24%
KSA - 2 N/A
Total Tax Expenses 101 152 50%
Net Profit
IDH recorded net profit of EGP 245 million in Q1 2025, down from last year's
EGP 402 million figure. It is worth noting that last year's bottom-line had
been significantly boosted by foreign exchange gains booked by the company
during Q1 2024. Meanwhile, the Company's NPM came in at 15% in Q1 2025
compared to 34% in the same period of last year.
When controlling for contributions from foreign exchange gains during both
years, IDH booked an adjusted net profit of EGP 214 million in Q1 2025,
growing 114% year-on-year from EGP 100 million during the first quarter of
last year. The Company's adjusted net profit margin stood at 14% during Q1
2025, up from 9% this time last year.
10 Interest expenses on medium-term loans include EGP 4 million (EGP 5 million
in Q1 2024) related to the Group's facility with Ahli United Bank Egypt
(AUBE).
1(1) IDH's interest bearing debt as at 31 March 2025 included EGP 54 million
(EGP 67 million as at 31 March 2024) related to its facility with Ahli United
Bank Egypt (AUBE) (outstanding loan balances are excluding accrued interest
for the period).
1(2)Interest expenses on medium-term loans include EGP 4 million (EGP 5
million in Q1 2024) related to the Group's facility with Ahli United Bank
Egypt (AUBE).
1(3)Foreign exchange gains/losses are included within finance income/costs for
both periods.
ii. Balance Sheet Analysis
Assets
Property, Plant and Equipment (PPE)
IDH recorded PPE cost of EGP 3,219 million, up from the EGP 3,111 million as
at year-end 2024. The rise in CAPEX as a share of revenue in the period
largely reflects the addition of new branches and the renovation of existing
branches.
Total CAPEX Addition Breakdown - Q1 2025
EGP mn Q1 2025 % of Revenue
Leasehold Improvements/new branches 70 4.4%
Al-Borg Scan Expansion 2 0.1%
CAPEX Additions 72 4.5%
Translation Effect (1) -0.1%
Disposals (14) -0.9%
Total Increase in PPE Cost 57 3.6%
Trade Receivables and Provisions
Net trade receivables at 31 March 2025 stood at EGP 863 million, up from EGP
804 million as at year-end 2024. However, IDH's net receivables' Days on Hand
booked 126 days, down from 140 days at the end of 2024.
Provision charges for doubtful accounts in Q1 2025 stood at EGP 7 million,
compared to EGP 17 million in Q1 2024. The decrease versus the previous year
reflects an improvement in overall economic conditions, increased stability,
and reduced inflation across IDH's markets of operation. It was also directly
supported by the roll out back in May of last year of new incentives for IDH's
staff to boost collection rates.
Inventory
At 31 March 2025, IDH booked an inventory balance of EGP 483 million, up 52%
compared to inventory booked at year-end 2024. Similarly, Days Inventory
Outstanding (DIO) rose to 123 days, from 105 days at 31 December 2024. The
rise in DIO reflects slower sales as a result of the seasonal Ramadan
slowdown.
Cash and Net Debt
Cash balances and financial assets at amortised cost at 31 March 2025 reached
EGP 1,662 million, down marginally from EGP 1,716 million at year-end 2024.
EGP mn 31 December 2024 31 March 2025
Treasury Bills 1,126 1,025
Time Deposits 74 35
Current Accounts 494 560
Cash on Hand 23 42
Total 1,716 1,662
IDH's net cash1(4) balance recorded EGP 385 million as at 31 March 2025,
compared to a net cash of EGP 227 million as at year-end 2024.
EGP mn 31 December 2024 31 March 2025
Cash and Financial Assets at Amortised Cost1(5) 1,716 1,662
Lease Liabilities Property* (938) (936)
Total Financial Liabilities (Short-term and Long-term) (269) (242)
Interest Bearing Debt ("Medium Term Loans")** (282) (99)
Net Cash/(Debt) Balance 227 385
Note: Interest Bearing Debt includes accrued interest for each period.
*If excluding Lease Liabilities Property (IFRS 16), IDH would have recorded
net cash of EGP 1,321 million.
**Includes accrued finance cost.
Lease liabilities and financial obligations on property recorded EGP 936
million at 31 March 2025, largely unchanged versus the figure recorded at
year-end 2024.
Meanwhile, financial obligations related to equipment recorded at EGP 242
million as at 31 March 2025, with the decline versus the balance at the end of
the previous year reflecting a payment of approximately EGP 27 million and the
addition of no new contracts in 2025.
Finally, interest bearing debt16 (excluding accrued interest) reached EGP 88
million at the end of the first quarter of 2025, down from EGP 265 million at
year-end 2024. The decline reflects the settlement of the Company's overdraft
balance.
Liabilities
Trade Payable17
Trade payable as of 31 March 2025 stood at EGP 497 million, up from EGP 320
million at the end of 2024. Meanwhile, Days Payable Outstanding (DPO) came in
at 126 days, up from 90 days at 31 December 2024.
Put Option
The put option current liability stood at EGP 530 million as at 31 March 2025,
down marginally from EGP 532 million at 31 December 2024, and is related to
both:
· The option granted in 2011 to Dr. Amid, Biolab's CEO, to sell his
stake (40%) to IDH. The put option is in the money and exercisable since 2016
and is calculated as seven times Biolab's LTM EBITDA minus net debt.
· The option granted in 2018 to the International Finance
Corporation from Dynasty - shareholders in Echo Lab - and it is exercisable in
2024. The put option is calculated based on fair market value (FMV).
It is important to note that the put option previously included as part of the
agreement between IDH, Biolab and Izhoor in Saudi Arabia has been removed
following IDH's acquisition of Izhoor's entire 49% stake in Biolab KSA, which
was concluded in December 2024. Biolab KSA is now owned 79% by IDH and 21% by
its Jordanian subsidiary Biolab.
1(4) The net cash/(debt) balance is calculated as cash and cash equivalent
balances including financial assets at amortised cost, less interest-bearing
debt (medium term loans), finance lease and right-of-use liabilities.
1(5) It is worth noting that some term deposits and treasury bills cannot be
accessed for over three months and are therefore not treated as cash. Term
deposits which cannot be accessed for over three months stood at EGP 343
million at 31 March 2025 (2024: EGP 543 million). Meanwhile, treasury bills
not accessible for over three months stood at EGP 34 million (2024: EGP 60
million).
1(6) IDH's interest bearing debt as at 31 March 2025 included EGP 54 million
to its facility with Ahli United Bank Egypt (AUBE) (outstanding loan balances
are excluding accrued interest for the period).
1(7) Accounts payable is calculated based on average payables at the end of
each period.
Trade Receivables and Provisions
Net trade receivables at 31 March 2025 stood at EGP 863 million, up from EGP
804 million as at year-end 2024. However, IDH's net receivables' Days on Hand
booked 126 days, down from 140 days at the end of 2024.
Provision charges for doubtful accounts in Q1 2025 stood at EGP 7 million,
compared to EGP 17 million in Q1 2024. The decrease versus the previous year
reflects an improvement in overall economic conditions, increased stability,
and reduced inflation across IDH's markets of operation. It was also directly
supported by the roll out back in May of last year of new incentives for IDH's
staff to boost collection rates.
Inventory
At 31 March 2025, IDH booked an inventory balance of EGP 483 million, up 52%
compared to inventory booked at year-end 2024. Similarly, Days Inventory
Outstanding (DIO) rose to 123 days, from 105 days at 31 December 2024. The
rise in DIO reflects slower sales as a result of the seasonal Ramadan
slowdown.
Cash and Net Debt
Cash balances and financial assets at amortised cost at 31 March 2025 reached
EGP 1,662 million, down marginally from EGP 1,716 million at year-end 2024.
EGP mn 31 December 2024 31 March 2025
Treasury Bills 1,126 1,025
Time Deposits 74 35
Current Accounts 494 560
Cash on Hand 23 42
Total 1,716 1,662
IDH's net cash1(4) balance recorded EGP 385 million as at 31 March 2025,
compared to a net cash of EGP 227 million as at year-end 2024.
EGP mn 31 December 2024 31 March 2025
Cash and Financial Assets at Amortised Cost1(5) 1,716 1,662
Lease Liabilities Property* (938) (936)
Total Financial Liabilities (Short-term and Long-term) (269) (242)
Interest Bearing Debt ("Medium Term Loans")** (282) (99)
Net Cash/(Debt) Balance 227 385
Note: Interest Bearing Debt includes accrued interest for each period.
*If excluding Lease Liabilities Property (IFRS 16), IDH would have recorded
net cash of EGP 1,321 million.
**Includes accrued finance cost.
Lease liabilities and financial obligations on property recorded EGP 936
million at 31 March 2025, largely unchanged versus the figure recorded at
year-end 2024.
Meanwhile, financial obligations related to equipment recorded at EGP 242
million as at 31 March 2025, with the decline versus the balance at the end of
the previous year reflecting a payment of approximately EGP 27 million and the
addition of no new contracts in 2025.
Finally, interest bearing debt16 (excluding accrued interest) reached EGP 88
million at the end of the first quarter of 2025, down from EGP 265 million at
year-end 2024. The decline reflects the settlement of the Company's overdraft
balance.
Liabilities
Trade Payable17
Trade payable as of 31 March 2025 stood at EGP 497 million, up from EGP 320
million at the end of 2024. Meanwhile, Days Payable Outstanding (DPO) came in
at 126 days, up from 90 days at 31 December 2024.
Put Option
The put option current liability stood at EGP 530 million as at 31 March 2025,
down marginally from EGP 532 million at 31 December 2024, and is related to
both:
· The option granted in 2011 to Dr. Amid, Biolab's CEO, to sell his
stake (40%) to IDH. The put option is in the money and exercisable since 2016
and is calculated as seven times Biolab's LTM EBITDA minus net debt.
· The option granted in 2018 to the International Finance
Corporation from Dynasty - shareholders in Echo Lab - and it is exercisable in
2024. The put option is calculated based on fair market value (FMV).
It is important to note that the put option previously included as part of the
agreement between IDH, Biolab and Izhoor in Saudi Arabia has been removed
following IDH's acquisition of Izhoor's entire 49% stake in Biolab KSA, which
was concluded in December 2024. Biolab KSA is now owned 79% by IDH and 21% by
its Jordanian subsidiary Biolab.
1(4) The net cash/(debt) balance is calculated as cash and cash equivalent
balances including financial assets at amortised cost, less interest-bearing
debt (medium term loans), finance lease and right-of-use liabilities.
1(5) It is worth noting that some term deposits and treasury bills cannot be
accessed for over three months and are therefore not treated as cash. Term
deposits which cannot be accessed for over three months stood at EGP 343
million at 31 March 2025 (2024: EGP 543 million). Meanwhile, treasury bills
not accessible for over three months stood at EGP 34 million (2024: EGP 60
million).
1(6) IDH's interest bearing debt as at 31 March 2025 included EGP 54 million
to its facility with Ahli United Bank Egypt (AUBE) (outstanding loan balances
are excluding accrued interest for the period).
1(7) Accounts payable is calculated based on average payables at the end of
each period.
- End -
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. END QRFARMFTMTJTBTARecent news on Integrated Diagnostics Holdings
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