REG - Integrated Diag Hdgs - Final Results
17/04/2025 07:00
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RNS Number : 3644F Integrated Diagnostics Holdings PLC 17 April 2025
Integrated Diagnostics Holdings Plc
FY 2024 Results
Thursday, 17 April 2025
Integrated Diagnostics Holdings plc ends 2024 on strong note delivering 39%
and 115% year-on-year top- and bottom-line growth
(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 audited financial
statements for the year ended 31 December 2024. IDH reported revenue of EGP
5,720 million, representing a year-on-year increase of 39% supported by both
rising test and patient volumes (up 9% and 5% year-on-year, respectively)
combined with higher average revenue per test. Further down the income
statement, the Company's efforts to optimize operations and keep a tight grip
on costs translated into improved margins at all levels of profitability. More
specifically, in FY 2024, IDH reported a net profit of EGP 1,008 million, up
115% year-on-year and with a bottom-line margin of 17.6% versus 11.4% in FY
2023.
In the final quarter of the year, revenue recorded EGP 1,613 million in Q4
2024, representing a 51% increase from Q4 2023 and surpassing an already
strong third quarter performance to become the single highest revenue figure
for any quarter in FY 2024. Meanwhile, IDH's bottom-line expanded 251%
year-on-year to EGP 284 million in Q4 2024, with a net profit margin (NPM) of
17.6% for the three-month period.
Financial Results (IFRS)
EGP mn Q4 2023 Q4 2024 Change FY 2023 FY 2024 Change
Revenue 1,069 1,613 51% 4,123 5,720 39%
Cost of Sales (682) (1,002) 47% (2,598) (3,538) 36%
Gross Profit 387 611 58% 1,524 2,182 43%
Gross Profit Margin 36.2% 37.9% 1.7 pts. 37.0% 38.1% 1.2 pts.
Operating Profit 184 320 74% 738 1,214 65%
Adjusted EBITDA(1) 319 480 50% 1,192 1,731 45%
Adjusted EBITDA Margin 29.9% 29.8% -0.1 pts. 28.9% 30.3% 1.3 pts.
Net Profit (Profit After Tax) 81 284 251% 468 1,008 115%
Profit after Tax Margin 7.6% 17.6% 10.0 pts. 11.4% 17.6% 6.2 pts.
Cash Balance(2) 835 1,716 105% 835 1,716 105%
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 Indicators(3)
EGP FY 2023 FY 2024 Change
Branches 601 628(4) +27
Patients ('000) 8,512 8,947 5%
Revenue per Patient (EGP) 484 639 32%
Tests ('000) 36,102 39,192 9%
Revenue per Test (EGP) 114 146 28%
Test per Patient 4.2 4.4 3%
(1) EBITDA is calculated as operating profit plus depreciation and
amortization. Adjusted EBITDA also removes one-off expenses for both reporting
periods.
(2) Cash balance includes time deposits, treasury bills, current accounts, and
cash on hand.
(3) Key operational indicators are calculated based on revenue for the periods
of EGP 5,720 million and EGP 4,123 million for FY 2024 and FY 2023,
respectively.
(4) IDH rolled out 43 new branches in Egypt and two in KSA, 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, leading to a net growth in its branch network
of 27 branches in FY 2024.
Introduction
i. Financial Highlights
· IDH reported consolidated revenue of EGP 5,720 million in FY
2024, up 39% from the previous year's EGP 4,123 million figure. The robust
year-on-year expansion was dual-driven as the Company recorded a 9%
year-on-year increase in tests performed coupled with a 28% year-on-year rise
in the average revenue per test. On a three-month basis, the Company saw its
revenue reach EGP 1,613 million in Q4 2024, up 51% compared to the final
quarter of the previous year.
· Gross profit recorded EGP 2,182 million in FY 2024, an increase
of 43% from the previous year. Gross profit margin (GPM) also expanded versus
FY 2023, coming in at 38.1% in FY 2024 versus last year's 37.0% figure.
Improved gross profitability was driven primarily by lower direct salary and
wages, which as a share of revenue declined to 18.6% in FY 2024 compared to
18.8% last year, as well as lower direct depreciation and amortization as a
share of revenue for the year. On a three-month basis, gross profit recorded
EGP 611 million in Q4 2024, up 58% year-on-year and with a margin of 38%, up
two percentage points from last year's fourth quarter gross margin.
· Adjusted EBITDA(5) recorded EGP 1,731 million in FY 2024, up 45%
compared to last year's figure and with an associated margin of 30% versus 29%
in FY 2023. Improved EBITDA profitability reflects enhanced gross
profitability for FY 2024 coupled with lower SG&A expenses as the
Group-wide cost optimization strategy delivered the desired results. In Q4
2024, adjusted EBITDA came in at EGP 480 million, up 50% year-on-year with a
margin of 30%, largely unchanged from the margin recorded in the final three
months of last year.
· Net profit (Profit after tax) stood at EGP 1,008 million in FY
2024, more than doubling from year's EGP 468 million bottom-line. IDH's NPM
for the year improved remarkably, reaching 17.6% in FY 2024 versus 11.4% last
year. Bottom-line profitability was boosted by FX gains of EGP 303 million in
FY 2024 (up 245% year-on-year) and a 41% year-on-year decline in net interest
expenses for the year. On a three-month basis, net profit came in at EGP 284
million in Q4 2024, representing an impressive 251% increase from Q4 2023. NPM
came in at 17.6% in Q4 2024 versus 7.6% in Q4 2023.
ii. Operational Highlights
· As at year-end 2024, IDH's branch network stood at 628 branches,
representing a net year-on-year increase of 27 branches compared to its
network as at 31 December 2023. In the twelve-month period, IDH inaugurated 43
new branches in Egypt and two new branches in Saudi Arabia. Meanwhile, in
Sudan the Company reopened one branch during Q3 2024 with the remaining 17
still indefinitely shut as fighting in the country continues. Finally, during
the year, IDH saw the closure of one of its airport branches in Jordan as
demand for Covid-19 testing continued its rapid decline.
· During FY 2024, IDH conducted 39.2 million tests across its
markets, a 9% year-on-year increase from the 36.1 million tests performed in
FY 2023.
· IDH's average revenue per test increased to EGP 146 in FY 2024,
28% above last year's EGP 114 figure. The year-on-year increase reflects the
strategic price increases rolled out by the Company to address inflationary
pressures across several of its markets including Egypt and Nigeria.
· IDH served 8.9 million patients in FY 2024, 5% above last year's
total patient count. Meanwhile, in line with IDH's value extraction strategy,
the average number of tests per patient reached a new record-high of 4.4 tests
in FY 2024, versus 4.2 tests in FY 2023 and 3.7 in FY 2022. The steady rise in
average tests per patient highlights the efficacy of IDH's initiatives,
including its loyalty program introduced in FY 2021, which continues to be a
key driver behind the sustained increase in tests per patient over the last
several years.
iii. Updates by Geography
· In Egypt (82.5% of total revenue in FY 2024), IDH recorded
revenue of EGP 4,718 million, up 38% versus the previous year. Top-line growth
in FY 2024 was supported by a 9% year-on-year increase in tests performed
coupled with a 27% year-on-year increase in the average revenue per test.
Rising test volumes continue to showcase the growth potential offered by IDH's
home and largest market. On a quarterly basis, IDH's Egyptian operations
reported revenue of EGP 1,345 million in Q4 2024, a 48% year-on-year increase.
· IDH's Jordanian subsidiary, Biolab (15.7% of total revenues in FY
2024), saw revenue reach JOD 13.9 million in FY 2024, largely unchanged
year-on-year. During the year, IDH's Jordanian operations recorded a 4%
year-on-year decline in net revenue per test in local currency terms
reflecting the tight pricing regulations imposed on Jordan's health sector.
Meanwhile, Biolab saw a 3% year-on-year rise in test volumes, despite regional
instability weighing on medical tourism traffic throughout the year. In EGP
terms, operations in Jordan reported revenue of EGP 899 million in FY 2024 and
EGP 237 million in Q4 2024, representing year-on-year rises of 49% and 69%,
respectively, due to the translation effect from a weakened EGP.
· In Nigeria (1.4% of total revenues in FY 2024), Echo-Lab reported
revenue of NGN 2,716 million, an increase of 39% from last year's figure.
Higher revenue came on the back of a 60% year-on-year increase in average
revenue per test in Naira terms as Echo-Lab continued to hike prices to keep
up with inflation in the country. Throughout the year, persistent inflation
weighed on patients' purchasing power with test and patient volumes declining
13% and 12%, respectively, compared to FY 2023. In EGP-terms, revenue in
Nigeria declined 15% year-on-year to EGP 82 million in FY 2024 reflecting a
weaker Naira during the year. In the final quarter of FY 2024, revenue in
Nigeria increased 23% year-on-year to reach EGP 22 million.
· Biolab KSA, IDH's newest venture in Saudi Arabia (0.3% of total
revenues in FY 2024), which began operations in Q1 2024 with one branch
opening in January and another in March, reported revenue of SAR 1.4 million
in FY 2024. Since inception, Biolab KSA has performed 45 thousand tests with
average revenue per test recording SAR 31. Operations in the Group's fifth and
newest market are continuing to ramp up with revenue in Q4 2024 standing at
SAR 625 thousand, up 39% from the revenue recorded in Q3 2024. 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. As such, in December 2024, IDH announced the purchase of
Izhoor's(6) 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). By increasing its stake in the company, IDH
is looking to accelerate the venture's ramp up to rapidly begin capturing the
large upside offered by the Saudi market.
· 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.
(5) Adjusted EBITDA is calculated as operating profit plus depreciation and
amortization. Adjusted EBITDA also removes one-off expenses for both reporting
periods.
(6) Izhoor Holding Medical Company LLC. It is worth noting that Biolab KSA was
originally launched as a joint venture between IDH (30%), Biolab (21%), and
Izhoor (49%) in January 2024.
iv. Management Commentary
Commenting on the Group's performance,(7) IDH Chief Executive Officer Dr. Hend
El-Sherbini said: "As I reflect back on 2024, I am proud of all that IDH has
been able to achieve despite the significant operational challenges that the
business continued to face across its growing footprint. Over the past twelve
months, we made notable progress on all key pillars of our growth and value
creation strategy, continuing to provide our world-class services to a growing
patient base, while investing in our operations to ensure their continued
growth in the coming years. In light of our progress over the last twelve
months, we enter the new year stronger and leaner than ever, well-placed to
continue capturing growth opportunities across our more mature and newer
markets while driving positive impacts in the communities where we operate.
2024, as with previous years, did not come without its challenges as
macroeconomic difficulties in Egypt and Nigeria, rising instability in the
MENA region, and the ongoing fighting in Sudan, continued to weigh on both
businesses and individuals across our chosen geographies.
Despite a challenging operating environment, IDH delivered an impressive 39%
year-on-year expansion in revenue driven by strong results in Egypt, a
resilient performance in Nigeria and Jordan, and a growing contribution from
our newest market of Saudi Arabia. We were pleased to note that top-line
growth for the year was driven by both rising volumes as well as higher
average prices. In fact, during 2024, we conducted 39.2 million tests across
our markets, a 9% year-on-year increase. Total patients served also increased
5% year-on-year, recording 8.9 million in 2024. What was arguably even more
impressive was the Group's ability to systematically grow its test per patient
metric, a key pillar of our long-term growth strategy. During 2024, the
average number of tests per patient reached a new record-high of 4.4 tests, up
from 4.2 tests in 2023 and 3.7 in 2022. Meanwhile, efforts to optimise our
operations continued to pay off, with margins improving across the board
throughout the year.
The year got off to an exciting start, as we officially inaugurated our new
Saudi Arabian venture under the brand name of Biolab KSA. Looking back at the
venture's first twelve months, we are pleased with the progress made and enter
2025 with a clear strategy to build on our current momentum and capture a
growing share of the Saudi market. Over the course of 2024, we launched a
comprehensive branding strategy, which included outdoor advertising, social
media campaigns, community event sponsorships, and partnerships with local
healthcare providers. Our efforts on this front have yielded positive results
with patient and test volumes growing rapidly with each passing quarter. In
light of our initial results, we remain confident that Saudi Arabia represents
a key avenue of future growth for IDH, and we are committed to delivering on
our investment targets to deliver on our strategy and vision. To enable us to
better execute on our ramp up strategy in the country, in December 2024 we
successfully completed the acquisition of our local partner's 49% stake in the
venture for a total consideration of USD 3.2 million. This saw our effective
stake in Biolab KSA jump to 100%, with 79% controlled by IDH and the remaining
21% by our Jordanian subsidiary, Biolab.
As we geared up for a new chapter of growth and value creation, we took the
strategic decision of delisting from the Egyptian Exchange (EGX), refocusing
our efforts on effectively communicating our value proposition to investors on
the London Stock Exchange (LSE), where we have been listed since 2015.
With just over a quarter of 2025 now behind us, I am happy to report that the
new year is shaping up to be another successful one for IDH. In the coming
months, we are hoping to capitalise on improving market conditions at home and
across our wider footprint to continue generating growth and value. In our
more mature markets of Egypt, Jordan, and Nigeria, we remain focused on
driving revenue expansion through a combination of higher volumes and prices.
Over in Saudi Arabia, we are excited to leverage our increased stake in Biolab
KSA to accelerate the venture's ramp up. The Saudi Arabian market provides our
business with ample fertile ground on which to develop a successful operation,
and we are certain that the strategic combination of IDH's resources with
Biolab's expertise will prove highly effective in capturing the market's
potential. Throughout the year, we expect to see a further recovery in
margins, as inflation normalises across our markets. Building on the work done
in 2024, the theme for the coming year will continue to be cost optimisation
and efficiencies. On this front, we are hard at work to deliver on our
digitalisation strategy, which we are confident will help us extract further
cost savings while boosting service quality and patient experience."
- End -
(7) The Chief Executive Officer's full review of the Group's 2024 performance
is available starting on page 8 of this release.
Analyst and Investor Call Details
An analyst and investor call will be hosted at 14:00 pm (UK) | 15:00 (Egypt)
on Thursday, 17 April 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-FY24-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 December 2024 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.
A message from the Chair of your Board of Directors
I am pleased to report that despite the operational challenges across our
markets and the wider MENA region, (including the flotation and subsequent
depreciation of the Egyptian Pound (EGP) in March 2024), your Company has
continued to demonstrate the resilience of its business model and the
attractiveness of its value proposition, delivering another year of sustained
growth and impact.
Turning Challenges into Opportunities
2024 was a difficult year throughout our footprint, as macroeconomic
challenges and political instability continued to negatively impact business
activity.
Despite this backdrop, your Company successfully delivered a 39% year-on-year
increase in revenue, supported by rising test and patient volumes, as our
value-added offering continued to draw a growing number of patients to the
business.
During the past twelve months, we performed 39.2 million tests and served
nearly 9 million patients across our five markets.
Cognisant of the increasing challenges posed by high inflation on patients'
affordability across our markets, we ensured our services remained accessible
to as many patients as possible, sharing the burden of rising prices with
them.
At the start of the year, we expanded into our fifth market with the launch of
two branches in Saudi Arabia.
We have seen strong demand for our service offering which reaffirms our
strategy that the Kingdom represents a key growth driver for our Company in
the coming years.
We increased our stake in Biolab KSA in December 2024 and are excited to build
on the progress achieved since launch to maximise the market's full potential.
We have had to restructure our business in Nigeria which has taken both
management and capital resource, but have now successfully set it on course to
turn profitable in 2025.
Sudan's civil war has continued unabated throughout 2024 and early 2025. In
light of the dangers that the conflict poses to our staff, patients, and
operations, we have mothballed 17 of our 18 Sudanese branches, but were able
to reopen one branch in the third quarter of 2024, signalling our commitment
to retaining our business in the country.
Embracing Innovation
We continue to embrace digital transformation across all divisions of the
business driving both improved management controls and maximising cost
efficiencies.
We are seeking to maximise the latest Artificial Intelligence (AI) tools and
solutions across the business and considering how we can drive more value from
our substantial data bank, while retaining strict and stringent patient data
confidentiality.
Environmental, Social, and Governance (ESG)
In November 2024, we published our third Sustainability Report outlining our
commitment to monitor and deliver on our ESG agenda.
Since inception, we have placed great emphasis on maintaining transparent and
sustainable operations across our expanding footprint.
Delisting from the Egyptian Exchange (EGX)
In September 2024, our Company completed its delisting process from the EGX.
The decision was taken to safeguard the best interests of the Company and its
shareholders.
We remain committed to maintaining our standard listing on the London Stock
Exchange (LSE) and to meeting all disclosure requirements for LSE-listed
companies.
Risk Matrix
Starting in December 2024, our Audit Committee welcomed Yvonne Stillhart as
its new chair.
Yvonne replaces Dan Olsson who will remain on our Board of Directors as a
Non-Executive Director.
Under Yvonne's leadership, the Audit Committee will continue to monitor our
risk matrix, guaranteeing that we are fully compliant
with up-to-date policies and procedures, ensuring business continuity and
ensuring that we remain proactive to monitoring all market exigencies.
Board Changes
In 2024, we expanded our Board of Directors with the addition of Sherif El
Zeiny.
Sherif joined the Group as Chief Financial Officer, Vice President and Board
Member.
His extensive experience in Egypt and neighbouring markets has already proven
indispensable, helping us successfully navigate the challenges faced across
our markets over the past year.
As at year-end 2024, your Board of Directors comprises mainly non-executive
directors and is further strengthened by robust and constantly refined
governance framework.
Dividend policy
Since our initial public offering back in 2015, your Company has been
committed to paying a regular dividend. Given the current market
uncertainties, the Board believes it is prudent to take a cautious and
measured approach. Therefore, we have decided to defer the declaration of a
dividend for the year ended 31 December 2024 until after the release of our
half-year results. This will allow us to better assess our capital needs in
light of potential expansion opportunities and prevailing market conditions.
Despite this decision, our dividend policy has not changed.
As part of our asset-light strategy, our dividend policy is to return to
shareholders the maximum amount of excess cash after taking into account the
capital needed to support operations, capital expenditure plans and potential
acquisitions.
Gratitude to Our Shareholders
As with every year, we extend our gratitude to our trusted and loyal
shareholders, who continue to place their confidence in IDH and its staff to
deliver incremental value year after year.
We are constantly seeking to consider options to improve our share price.
While there will invariably be continuing challenges to address and monitor
across our market footprint, we are confident that our resilient business
model and value-added service offerings will enable us to deliver on our
growth strategy and drive growth for stakeholders.
Capitalising on Improving Operating Conditions
We enter 2025 with cautious optimism fuelled by the encouraging signs coming
out of Egypt and the wider region.
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.
Finally, I would like to thank IDH's management team and staff for their
continued dedication to excellence.
I look forward to working with each and every one of you in the years to come
as we continue to set new standards in the regional diagnostics industry and
improve patient lives one test and scan at a time.
Warm regards,
Lord St John of Bletso
Chair
Chief Executive's Review
As I reflect back on 2024, I am proud of all that IDH has been able to achieve
despite the significant operational challenges that the business continued to
face across its growing footprint. Over the past twelve months, we made
notable progress on all key pillars of our growth and value creation strategy,
continuing to provide our world-class services to a growing patient base,
while investing in our operations to ensure their continued growth in the
coming years. In light of our progress over the last twelve months, we enter
the new year stronger and leaner than ever, well-placed to continue capturing
growth opportunities across our more mature and newer markets while driving
positive impacts in the communities where we operate.
Navigating Turbulent Waters
2024, as with previous years, did not come without its challenges as
macroeconomic difficulties in Egypt and Nigeria, rising instability in the
MENA region, and the ongoing fighting in Sudan, continued to weigh on both
businesses and individuals across our chosen geographies.
In our home and largest market of Egypt, the year got off to a turbulent start
as record inflation, the lack of FX availability, and high interest rates
suppressed economic activity. The country began turning a corner in late
February and early March when the Egyptian government secured a historic
agreement with the UAE's ADQ fund for a USD 35 billion investment in Egypt's
North Coast area. In addition to the large investment from the Emirati fund,
the Egyptian government also signed two landmark financing agreements with the
International Monetary Fund (IMF) and European Union (EU). The fresh influx of
foreign reserves provided the country with the necessary dry powder to float
the Egyptian Pound (EGP), a historic decision announced by Egypt's Central
Bank in March 2024. The currency immediately lost over 60% of its value,
jumping from 30.9 EGP to the USD at the start of the year, to an average of
EGP 47.0 to EGP 51.0 throughout most of 2024. While a weaker EGP did fuel
inflation, which peaked at 35.7% in February before coming down to 24.1% in
December, it also sparked an impressive turnaround in the country's economy,
with foreign investment, business confidence, and remittances recovering
rapidly throughout the second half of the year. Although the challenges for
the country remain significant, the progress made in 2024 has left businesses
and foreign investors cautiously optimistic for what lies ahead, with the
coming year set to be characterized by normalising inflation and interest
rates and increased economic activity and consumer spending.
Across our other markets, we also faced significant obstacles. Similarly to
Egypt, Nigeria saw patient purchasing power weighed down by a weakened local
currency and high inflation. Meanwhile, Jordan's vicinity to Israel and
Palestine saw patient volumes impacted by the war, which throughout 2024, saw
multiple escalation points including the extension of the conflict to Southern
Lebanon in final months of the year. On this point, it is important to note
that fighting in both Gaza and Lebanon temporarily ceased thanks to a cease
fire agreement signed by all parties in January 2025. Unfortunately, fighting
in Gaza has since resumed with a new Israeli campaign launched on 18 March
2025. While the situation on the ground remains uncertain, there is hope that
this will lead to a permanent end to the conflict and a recovery in economic
activity in the region. Finally, throughout 2024 and early 2025, Sudan's civil
war continued undeterred, leading to thousands of deaths and displaced
civilians. Economic activity in the country continues to be greatly impacted
by the conflict, with no signs of this changing in the near-term.
Delivering Sustained Growth and Value
Despite a challenging operating environment, IDH delivered an impressive 39%
year-on-year expansion in revenue driven by strong results in Egypt, a
resilient performance in Nigeria and Jordan, and a growing contribution from
our newest market of Saudi Arabia. We were pleased to note that top-line
growth for the year was driven by both rising volumes as well as higher
average prices. In fact, during 2024, we conducted 39.2 million tests across
our markets, a 9% year-on-year increase. Total patients served also increased
5% year-on-year, recording 8.9 million in 2024. What was arguably even more
impressive was the Group's ability to systematically grow its test per patient
metric, a key pillar of our long-term growth strategy. During 2024, the
average number of tests per patient reached a new record-high of 4.4 tests, up
from 4.2 tests in 2023 and 3.7 in 2022. Meanwhile, efforts to optimise our
operations continued to pay off, with margins improving across the board
throughout the year.
Looking at our performance by geography in more detail, in Egypt we recorded a
38% year-on-year rise in revenue for 2024, supported by a 9% increase in tests
performed versus 2023 coupled with a 27% year-on-year increase in the average
revenue per test. Rising test volumes, which over the last five years have
grown at a compounded rate(8) of 10%, continue to showcase the growth
potential offered by the Egyptian market. To capitalise on the opportunities
offered by the country, during 2024 we rolled out an additional 43 branches
across underserved neighbourhoods within and outside the Greater Cairo area.
With a network across the country of 587 branches as of 31 December 2024, we
remain the largest private diagnostics services provider in Egypt. Our scale
not only shields us from competitors looking to expand in the market, but also
enables us to secure favourable prices for machinery and test kits, in turn
keeping our costs down and safeguarding our margins at a time when a weaker
EGP and rising inflation are placing unprecedented pressure on local
businesses. Meanwhile, throughout the year we continued to reap the benefits
of our diversification strategy with our home testing services and radiology
segment continuing to make growing contributions to the country's top-line.
More specifically, Al-Borg Scan, our radiology venture in Egypt, contributed
4.8% to the country's revenue for the year, up nearly two percentage points
from its contribution back in 2022. Similarly, our house call services made up
18% of our top-line in Egypt, well ahead of our pre-pandemic averages.
Jordan remained our second-largest market in 2024 despite the country
recording largely stable revenue in local currency terms. During 2024, revenue
reached JOD 13.9 million as a small decline in average revenue per test
reflecting the tight pricing regulations imposed on Jordan's health sector was
offset by a 3% year-on-year rise in test volumes. In EGP terms, Biolab
reported revenue of EGP 899 million in 2024, representing year-on-year rise of
49% due to the translation effect from a weakened EGP. In Nigeria, Echo-Lab
reported revenue of NGN 2,716 million, an increase of 39% from last year's
figure. Higher revenue came on the back of a 60% year-on-year increase in
average revenue per test as our Nigerian subsidiary continued to hike prices
to keep up with inflation in the country. In EGP-terms, revenue in Nigeria
declined only 15% year-on-year to EGP 82 million reflecting a weaker Naira
during the year. In our newest market of Saudi Arabia, we recorded encouraging
results in Biolab KSA's first year of operations with revenue reaching SAR 1.4
million in 2024. Since inception, Biolab KSA has performed 45 thousand tests
with average revenue per test recording SAR 31. Operations in the Kingdom are
continuing to ramp up with revenue in Q4 2024 standing at SAR 625 thousand, up
39% from the revenue recorded in Q3 2024. Finally, in Sudan, our results were
significantly impacted by the ongoing conflict. It is worth noting that for
several months throughout 2024 all 18 of our branches remained shut, with only
one branch able to reopen starting in the third quarter of last year. These
difficulties were reflected in our performance as revenue generated in Sudan
declined 77% year-on-year. While the country now represents just 0.05% of our
consolidated top-line, we remain committed to maintaining our business in the
country and continue to assess the evolving situation on the ground to ensure
our decisions are taken in the best interests of our staff, patients, and
operations.
Further down the income statement, we saw improving margins at all levels of
profitability. We recorded a gross profit for 2024 of EGP 2,182 million, up
43% year-on-year and with an associated margin of 38% versus 37% in the prior
year. Improving gross profitability was supported by an optimised cost base
for the year. More specifically, during 2024 we recorded lower depreciation as
a percentage of revenue thanks to enhanced fixed asset utilization, decreased
direct salary expenses relative to revenue as a result of IDH's efforts to
optimise headcount, as well as lower raw materials to sales as we leveraged
our supplier relationships to secure advantageous inventory prices. Similarly,
adjusted EBITDA for the twelve-month period stood at EGP 1,731 million, an
increase from the previous year of 45%. Adjusted EBITDA margin recorded 30% in
2024 versus 29% one year earlier. Finally, IDH's net profit for 2024 recorded
an impressive 115% year-on-year expansion, surpassing the EGP 1.0 billion
mark. Net profit margin also improved starkly, increasing from 11% in 2023 to
18% in 2024. It is worth noting that improvements in our net profit partially
capture the FX gains booked in relation to a weakening of the EGP in 2024
versus 2023. However, adjusting for FX gains in both periods, net profit would
have recorded an 85% year-on-year expansion, with an associate margin
improvement of two percentage points versus the previous year.
Expanding Our Footprint
The year got off to an exciting start, as we officially inaugurated our new
Saudi Arabian venture under the brand name of Biolab KSA. Looking back at the
venture's first twelve months, we are pleased with the progress made and enter
2025 with a clear strategy to build on our current momentum and capture a
growing share of the Saudi market. Over the course of 2024, we launched a
comprehensive branding strategy, which included outdoor advertising, social
media campaigns, community event sponsorships, and partnerships with local
healthcare providers. Our efforts on this front have yielded positive results
with patient and test volumes growing rapidly with each passing quarter. In
light of our initial results, we remain confident that Saudi Arabia represents
a key avenue of future growth for IDH, and we are committed to delivering on
our investment targets to deliver on our strategy and vision. To enable us to
better execute on our ramp up strategy in the country, in December 2024 we
successfully completed the acquisition of our local partner's 49% stake in the
venture for a total consideration of USD 3.2 million. This saw our effective
stake in Biolab KSA jump to 100%, with 79% controlled by IDH and the remaining
21% by our Jordanian subsidiary, Biolab.
In 2025, we will continue to invest in developing our brand awareness and
reputation in the market. Simultaneously, we are targeting the launch of four
new branches to take our total network in KSA to six by year-end. This will
enable us to grow our reach and volumes, and move us closer towards
establishing Biolab KSA as the go-to provider of diagnostic services in the
Kingdom.
Refocusing Our Strategy
As we geared up for a new chapter of growth and value creation, we took the
strategic decision of delisting from the Egyptian Exchange (EGX), refocusing
our efforts on effectively communicating our value proposition to investors on
the London Stock Exchange (LSE), where we have maintained our listing since
2015. While our dual listing on the EGX helped us gain traction in our home
market, low trading volumes and liquidity on the EGX have stood in the way of
realising our initial vision at the time of listing on the exchange. This
decision was taken in the best interest of our Company, and following a
careful assessment by management and our Board of Directors. Going forward, we
remain fully committed to meeting all regulatory requirements for companies
listed on the LSE.
Maximizing Our Impact
As an industry leader and trendsetter across our growing footprint, we
recognise our responsibility to develop and adhere to best-in-class
environmental, social, and governance (ESG) policies. Throughout our
operations, ESG monitoring and compliance play a crucial role, enabling us to
generate long-term value in the communities where we do business. Over the
last three years, we have been hard at work to revamp our approach to ESG,
cooperating closely with a leading consultant in the field to develop and
implement a comprehensive set of guidelines covering all aspects of our
operations. The new framework has helped us take a more focused and effective
approach to sustainability, providing the Group with the tools to measure
progress and boost accountability. On this front, we have recently published
our third sustainability report which is available for download on our
website. Meanwhile, starting in 2022 we have been including the Task Force on
Climate-related Financial Disclosures (TCFD) in the Company's annual report in
line with listing requirements. In 2025, we are eager to deepen our efforts to
ensure that our impact continues to grow in line with our ambitions and
strategy.
Throughout the year, our internationally experienced Board of Directors
continued to provide the Company with the guidance and accountability
necessary to drive sustainable growth. At the start of the year, we welcomed
on board Sherif El Zeiny, who joined IDH as an Executive Director on our Board
of Directors, Group Chief Financial Officer, and Vice President. During his
first year at the Company, Sherif has demonstrated all his experience and
skills, helping us unlock value and realise our growth potential across both
existing and new markets. In 2025, Sherif will be leading on the KSA
expansion, a central pillar of our long-term growth strategy. I also wanted to
take this opportunity to thank Yvonne Stillhart, who has stepped up to chair
the Group's Audit Committee as of 1 December 2024. Yvonne will build on the
excellent work done by Dan Olsson, who stepped down as chair of the committee,
and who will remain a Non-executive Director on the Company's Board.
Looking Ahead to 2025
With just over a quarter of 2025 now behind us, I am happy to report that the
new year is shaping up to be another successful one for IDH. In the coming
months, we are hoping to capitalise on improving market conditions at home and
across our wider footprint to continue generating growth and value.
In our more mature markets of Egypt, Jordan, and Nigeria, we remain focused on
driving revenue expansion through a combination of higher volumes and prices.
In Egypt, this entails continuing to roll out new branches in strategic
locations to capture the upside offered by the country's large, rapidly
growing, and increasingly health-conscious population. We are also continuing
to place Al-Borg Scan at the centre of our growth story, in light of the vast
potential offered by Egypt's fragmented radiology segment. With inflation set
to remain well above historical averages in both Egypt and Nigeria, we went
ahead with our planned annual price increases at the start of the year. As
always, our priority remains ensuring that our services continue to be
accessible to as many patients as possible and, as such, we continue to share
the inflationary burden with them. Over in Saudi Arabia, we are excited to
leverage our increased stake in Biolab KSA to accelerate the venture's ramp
up. The Saudi Arabian market provides our business with ample fertile ground
on which to develop a successful operation, and we are certain that the
strategic combination of IDH's resources with Biolab's expertise will prove
highly effective in capturing the market's potential.
Throughout the year, we expect to see a further recovery in margins, as
inflation normalises across our markets. Building on the work done in 2024,
the theme for the coming year will continue to be cost optimisation and
efficiencies. On this front, we are hard at work to deliver on our
digitalisation strategy, which we are confident will help us extract further
cost savings while boosting service quality and patient experience.
Dividend Policy and Proposed Dividend
We are pleased to report that the Company continues to perform well, with a
solid operational foundation and a strong cash position. This financial
strength is enabling us to confidently pursue our strategic expansion
initiatives, as we continue to build for long-term growth and resilience.
As part of our ongoing efforts to create sustainable value, we are currently
evaluating a number of promising projects. In light of the current market
uncertainties, the Board believes it is prudent to take a cautious and
measured approach. We have therefore opted to defer the declaration of a
dividend for the year ended 31 December 2024 until after the release of our
half-year results in August. This will allow us to better assess our capital
needs in light of these potential opportunities and prevailing market
conditions.
We remain committed to our strategic goals and to delivering value to our
shareholders, and we thank you for your continued support and trust.
Dr. Hend El-Sherbini
Chief Executive Officer
8 CAGR 2020 to 2024 is calculated based on conventional test volumes in both
periods. This excluded the 2.1 million Covid-19-related tests performed in
2020 as part of the Group's efforts to combat the pandemic.
Group Operational & Financial Review
i. Revenue and Cost Analysis
Consolidated Revenue
IDH ended 2024 on a high note, reporting strong fourth quarter and full-year
revenue growth. In FY 2024, the Company recorded consolidated revenue of EGP
5,720 million, an increase of 39% from FY 2023. In line with trends seen
throughout the past twelve months, top-line growth was dual-driven as IDH
performed 9% more tests than the previous year and recorded a 28% year-on-year
rise in average revenue per test. Test volumes grew in IDH's two largest
markets of Egypt and Jordan, with the Group's newest market of Saudi Arabia
also making a growing contribution. Meanwhile, higher average revenue per test
is primarily attributable to Egypt, where IDH continues to increase prices in
step with inflation.
Q4 2023 Q4 2024 Change FY 2023 FY 2024 Change
Revenue (EGP mn) 1,069 1,613 51% 4,123 5,720 39%
Tests performed (mn) 9.6 10.4 7% 36.1 39.2 9%
Revenue per test (EGP) 111 156 40% 114 146 28%
Revenue Analysis: Contribution by Patient Segment
Contract Segment (65% of Group revenue in FY 2024)
At IDH's contract segment, revenue recorded EGP 3,714 million in FY 2024, a
rise of 41% from the previous year. In line with trends recorded at the
consolidated level, test volumes increased by 11% year-on-year to 32.8 million
tests with average revenue per test also rising 28% to EGP 113 in FY 2024.
Average tests per patient reached a record 4.6 tests per patient in FY 2024,
up from 4.4 in FY 2023 and 4.1 in FY 2022. 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 (35% of Group revenue in FY 2024)
At IDH's walk-in segment, revenue recorded EGP 2,005 million in FY 2024, a
year-on-year increase of 34%. During the twelve-month period, IDH recorded
largely stable test volumes as rising inflation weighed on patients'
purchasing power at the segment. More specifically, during FY 2024, IDH
performed 6.4 million walk-in tests, down 1% from the previous year. On the
other hand, the Company's efforts to raise average prices in line with
inflation saw average revenue per walk-in test climb 35% year-on-year to reach
EGP 313 in FY 2024. Finally, average tests per patient at the segment recorded
3.6 in FY 2024, unchanged from last year's figure.
Revenue Analysis: Contribution by Patient Segment
Contract Segment (65% of Group revenue in FY 2024)
At IDH's contract segment, revenue recorded EGP 3,714 million in FY 2024, a
rise of 41% from the previous year. In line with trends recorded at the
consolidated level, test volumes increased by 11% year-on-year to 32.8 million
tests with average revenue per test also rising 28% to EGP 113 in FY 2024.
Average tests per patient reached a record 4.6 tests per patient in FY 2024,
up from 4.4 in FY 2023 and 4.1 in FY 2022. 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 (35% of Group revenue in FY 2024)
At IDH's walk-in segment, revenue recorded EGP 2,005 million in FY 2024, a
year-on-year increase of 34%. During the twelve-month period, IDH recorded
largely stable test volumes as rising inflation weighed on patients'
purchasing power at the segment. More specifically, during FY 2024, IDH
performed 6.4 million walk-in tests, down 1% from the previous year. On the
other hand, the Company's efforts to raise average prices in line with
inflation saw average revenue per walk-in test climb 35% year-on-year to reach
EGP 313 in FY 2024. Finally, average tests per patient at the segment recorded
3.6 in FY 2024, unchanged from last year's figure.
Detailed Segment Performance Breakdown
Walk-in Segment Contract Segment Total
FY23 FY24 Change FY23 FY24 Change FY23 FY24 Change
Revenue (EGP mn) 1,495 2,005 34% 2,627 3,714 41% 4,123 5,720 39%
Patients ('000) 1,788 1,791 0.1% 6,724 7,156 6% 8,512 8,947 5%
% of patients 21% 20% 79% 80% - -
Revenue per Patient (EGP) 836 1,120 34% 391 519 33% 484 639 32%
Tests ('000) 6,473 6,414 -1% 29,629 32,778 11% 36,102 39,192 9%
% of Tests 18% 16% 82% 84% - -
Revenue per Test (EGP) 231 313 35% 89 113 28% 114 146 28%
Test per Patient 3.6 3.6 -1% 4.4 4.6 4% 4.2 4.4 3%
Revenue Analysis: Contribution by Geography
Egypt (82.5% of Group revenue in FY 2024)
IDH's home and largest market, Egypt, maintained its strong growth momentum,
delivering revenue of EGP 4,718 million in FY 2024, up 38% compared to FY
2023. Revenue growth was supported by a 9% year-on-year rise in test volumes
coupled with a 27% year-on-year expansion in average revenue per test.
On a three-month basis, IDH's Egyptian operations reported revenue of EGP
1,345 million in Q4 2024, up a notable 48% year-on-year.
Al-Borg Scan
IDH's rapidly growing radiology venture, Al-Borg Scan, reported revenue growth
for the year of 45% with revenue reaching EGP 224 million in FY 2024. During
the year, IDH performed 263 thousand scans, an increase of 22% from the
previous year. Meanwhile, average revenue per scan climbed 19% year-on-year in
FY 2024 to reach EGP 854. Throughout the year, Al-Borg Scan's branch network
remained unchanged at seven branches, all strategically located across Greater
Cairo. The growing traction enjoyed by the venture is allowing IDH to position
itself as the go-to provider in the fragmented Egyptian radiology market.
House Calls
During FY 2024, 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 18% of the country's top-line in FY
2024, well above the service's contribution prior to the Covid-19 pandemic.
The robust contribution continues to display the segment's growth potential
and the effectiveness of the Group's post-pandemic strategy.
Wayak
Finally, Wayak, which capitalises on the Company's expanding patient database
to develop electronic medical records and provide personalized services,
achieved revenue of EGP 22 million for the year, marking a 107% year-on-year
increase. Revenue growth was driven by the 24% year-on-year growth in orders
fulfilled, which reached 218 thousand in FY 2024.
Detailed Egypt Performance Breakdown
FY 2023 FY 2024 Change
Revenue (EGP mn) 3,411 4,718 38%
Pathology Revenue (contribution to Egypt's results) 3,256 (95.5%) 4,494 (95.2%) 38%
Radiology Revenue (contribution to Egypt's results) 155 (4.5%) 224 (4.8%) 45%
Tests performed (mn) 33.4 36.4 9%
Revenue per test (EGP) 102 130 27%
Jordan (15.7% of Group revenue in FY 2024)
In IDH's second largest market, Jordan, Biolab recorded revenue in local
currency terms of JOD 13.9 million in FY 2024, largely unchanged from last
year's top-line. During the year, Biolab recorded a 3% year-on-year rise in
tests performed, reaching 2.5 million tests. Meanwhile, the stringent pricing
regulations imposed on Jordan's health sector, saw average revenue per test
decline 4% for the year in JOD terms. In EGP terms, operations in Jordan
reported revenues of EGP 899 million in FY 2024 representing year-on-year
rises of 49% due to the translation effect from a weakened EGP.
On a quarterly basis, Biolab recorded JOD 3.4 million in Q4 2024, up 5%
year-on-year. In EGP terms, it recorded EGP 237 million, up 69% year-on-year.
Detailed Jordan Performance Breakdown
FY 2023 FY 2024 Change
Revenue (EGP mn) 604 899 49%
Revenue (JOD mn) 14.0 13.9 -0.4%
Tests performed (mn) 2.4 2.5 3%
Revenue per test (EGP) 249 358 44%
Nigeria (1.4% of Group revenue in FY 2024)
Echo-Lab, IDH's Nigerian subsidiary, saw revenue come in at NGN 2,716 million
in FY 2024, an increase of 39% compared to revenue in FY 2023. Higher revenue
was supported by a 60% year-on-year increase in average revenue per test as
Echo-Lab continued to increase prices in line with inflation in the country.
However, rising inflation weighed on patients purchasing power with test and
patient volumes for the year down 13% and 12%, respectively, compared to the
previous year. In EGP-terms, revenue in Nigeria decline 15% year-on-year to
EGP 82 million in FY 2024 reflecting a weaker Naira during the period.
In Q4 2024, revenue in the country increased 23% year-on-year to reach EGP 22
million.
Saudi Arabia (0.3% of Group revenue in FY 2024)
Biolab KSA, IDH's newest venture in Saudi Arabia, which began operations in Q1
2024 with one branch opening in January and another in March, reported revenue
of SAR 1.4 million in FY 2024 (EGP 18 million). Since inception, Biolab KSA
has performed 45 thousand tests with average revenue per test recording SAR
31. Operations in the Group's fifth and newest market are continuing to ramp
up with revenue in Q4 2024 standing at SAR 625 thousand, up 39% from the
revenue recorded in Q3 2024.
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. During FY 2024, IDH's Sudanese operations generated revenue of EGP
2.6 million, down 77% year-on-year.
Jordan (15.7% of Group revenue in FY 2024)
In IDH's second largest market, Jordan, Biolab recorded revenue in local
currency terms of JOD 13.9 million in FY 2024, largely unchanged from last
year's top-line. During the year, Biolab recorded a 3% year-on-year rise in
tests performed, reaching 2.5 million tests. Meanwhile, the stringent pricing
regulations imposed on Jordan's health sector, saw average revenue per test
decline 4% for the year in JOD terms. In EGP terms, operations in Jordan
reported revenues of EGP 899 million in FY 2024 representing year-on-year
rises of 49% due to the translation effect from a weakened EGP.
On a quarterly basis, Biolab recorded JOD 3.4 million in Q4 2024, up 5%
year-on-year. In EGP terms, it recorded EGP 237 million, up 69% year-on-year.
Detailed Jordan Performance Breakdown
FY 2023 FY 2024 Change
Revenue (EGP mn) 604 899 49%
Revenue (JOD mn) 14.0 13.9 -0.4%
Tests performed (mn) 2.4 2.5 3%
Revenue per test (EGP) 249 358 44%
Nigeria (1.4% of Group revenue in FY 2024)
Echo-Lab, IDH's Nigerian subsidiary, saw revenue come in at NGN 2,716 million
in FY 2024, an increase of 39% compared to revenue in FY 2023. Higher revenue
was supported by a 60% year-on-year increase in average revenue per test as
Echo-Lab continued to increase prices in line with inflation in the country.
However, rising inflation weighed on patients purchasing power with test and
patient volumes for the year down 13% and 12%, respectively, compared to the
previous year. In EGP-terms, revenue in Nigeria decline 15% year-on-year to
EGP 82 million in FY 2024 reflecting a weaker Naira during the period.
In Q4 2024, revenue in the country increased 23% year-on-year to reach EGP 22
million.
Saudi Arabia (0.3% of Group revenue in FY 2024)
Biolab KSA, IDH's newest venture in Saudi Arabia, which began operations in Q1
2024 with one branch opening in January and another in March, reported revenue
of SAR 1.4 million in FY 2024 (EGP 18 million). Since inception, Biolab KSA
has performed 45 thousand tests with average revenue per test recording SAR
31. Operations in the Group's fifth and newest market are continuing to ramp
up with revenue in Q4 2024 standing at SAR 625 thousand, up 39% from the
revenue recorded in Q3 2024.
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. During FY 2024, IDH's Sudanese operations generated revenue of EGP
2.6 million, down 77% year-on-year.
Revenue Contribution by Country
FY 2023 FY 2024 Change
Egypt Revenue (EGP mn) 3,411 4,718 38%
Pathology Revenue (EGP mn) 3,256 4,494 38%
Radiology Revenue (EGP mn) 155 224 45%
Egypt Contribution to IDH Revenue 82.7% 82.5%
Jordan Revenue (EGP mn) 604 899 49%
Jordan Revenues (JOD mn) 14.0 13.9 -0.4%
Jordan Revenue Contribution to IDH Revenue 14.7% 15.7%
Nigeria Revenue (EGP mn) 96 82 -15%
Nigeria Revenue (NGN mn) 1,961 2,716 39%
Nigeria Contribution to IDH Revenue 2.3% 1.4%
Saudi Arabia Revenue (EGP mn) - 18 -
Saudi Arabia Revenue (SAR mn) - 1.4 -
Saudi Arabia Contribution to IDH Revenue - 0.3%
Sudan Revenue (EGP mn) 11 3 -77%
Sudan Revenue (SDG mn) 220 85 -61%
Sudan Contribution to IDH Revenue 0.3% 0.05%
Average Exchange Rate
FY 2023 FY 2024 Change
USD/EGP 30.8 45.5 48%
JOD/EGP 43.1 64.1 49%
NGN/EGP 0.05 0.03 -40%
SAR/EGP 8.2 12.2 49%
SDG/EGP 0.05 0.06 14%
Patients Served and Tests Performed by Country
FY 2023 FY 2024 Change
Egypt Patients Served (mn) 8.0 8.5 6%
Egypt Tests Performed (mn) 33.4 36.4 9%
Jordan Patients Served (k) 372 368 -1%
Jordan Tests Performed (k) 2,424 2,507 3%
Nigeria Patients Served (k) 132 116 -12%
Nigeria Tests Performed (k) 266 230 -13%
Saudi Arabia Patients Served (k) - 6.0 -
Saudi Arabia Tests Performed (k) - 45 -
Sudan Patients Served (k) 14 0.0 N/A
Sudan Tests Performed (k) 40 0.0 N/A
Total Patients Served (mn) 8.5 8.9 5%
Total Tests Performed (mn) 36.1 39.2 9%
Operational Branches by Country
31 December 2023 31 December 2024 Change
Egypt 544 587 +43
Jordan 27 26 -1
Nigeria 12 12 -
KSA - 2 +2
Sudan 18 1 -17
Total 601 628 +27
Cost of Goods Sold (COGS)
IDH's COGS for the year recorded EGP 3,538 million, up 36% from FY 2023. As a
percentage of consolidated revenue, COGS accounted for 62%, just below last
year's 63% figure. The year-on-year reduction was driven by lower direct wages
and salary expenses, lower raw material outlays, and lower depreciation as a
share of revenue.
COGS Breakdown as a Percentage of Revenue
FY 2023 FY 2024
Raw Materials 22.2% 22.0%
Wages & Salaries 18.8% 18.6%
Depreciation & Amortisation 8.8% 7.7%
Other Expenses 13.3% 13.6%
Total 63.0% 61.9%
Raw material costs (36% of consolidated COGS in FY 2024) was the largest
contributor to COGS for the year, having increased 38% year-on-year to reach
EGP 1,257 million. However, as a share of revenue, raw materials declined
marginally to 22.0% in FY 2024 from 22.2% in the previous year. The decline is
directly attributable to the Company's proactive inventory management and
strong supplier relationships, which continue to shield its cost base from
inflationary pressures and a weaker EGP.
Wages and salaries, which include employee share of profits (30% share of
consolidated COGS in FY 2024), remained the second largest contributor to
IDH's total COGS during FY 2024, recording EGP 1,063 million, up 37%
year-on-year. As a percentage of revenue, direct wages and salaries declined
to 18.6% in FY 2024, down from 18.8 % in FY 2023. This decline reflects IDH's
efforts since the start of the year to optimize headcount.
Direct Wages and Salaries by Region
FY 2023 FY 2024 Change
Egypt (EGP mn) 589 774 31%
Jordan (EGP mn) 155 242 56%
Jordan (JOD mn) 3.6 3.8 5%
Nigeria (EGP mn) 27 22 -19%
Nigeria (NGN mn) 576 726 26%
Saudi Arabia (EGP mn) - 25 N/A
Saudi Arabia (SAR k) - 2 N/A
Sudan (EGP mn) 3 0.6 -79%
Sudan (SDG mn) 53 10 -81%
Direct depreciation and amortization costs (12% of consolidated COGS in FY
2024) rose 22% year-on-year to EGP 442 million in FY 2024. The rise in
depreciation expenses is attributed to the expansion of IDH's branch network,
which saw the addition of 43 new branches in Egypt and two in Saudi Arabia
compared to this time last year. However, as a percentage of revenue, direct
depreciation and amortization declined to 7.7% in FY 2024 from 8.8% in the
previous year.
Other expenses (22% of consolidated COGS in FY 2024) recorded EGP 777 million
in FY 2024, representing a growth versus the previous year of 42%. Other
expenses as a percentage of revenues stood at 13.6% largely unchanged from FY
2023. The main components making up other expenses during the past year were
repair and maintenance fees, hospital contracts, cleaning costs,
transportation, and license expenses.
Gross Profit
IDH reported a gross profit of EGP 2,182 million in FY 2024, up 43%
year-on-year. Gross profit margin (GPM) also improved to 38%, as IDH's COGS as
a percentage of revenue declined reflecting lower depreciation as a percentage
of revenue thanks to enhanced fixed asset utilization, decreased direct salary
expenses relative to revenue as a result of IDH's efforts to optimise
headcount over the past year, as well as lower raw materials to sales as the
Group continued to leverage its supplier relationships to secure advantageous
prices for its inventory.
Selling, General, and Administrative (SG&A) Expenses
SG&A outlays for the year came in at EGP 967 million in FY 2024, an
increase of 23% from FY 2023. However, as a percentage of revenues, SG&A
accounted for 17%, down from 19% in the previous year. The rise in SG&A
expenses was mainly due to:
· Indirect wages and salaries reached EGP 389 million, a 38% increase
compared to the previous year. The increase from FY 2023 was driven by annual
wage increases and the translation effect from Jordanian salaries as well as
Saudi Arabian salaries due to a weakened EGP. However, indirect salaries and
wages as a percentage of revenue remained largely stable at 6.8% owing to
IDH's headcount optimisation strategy.
· Other G&A expenses increased by 27% year-on-year to EGP 324
million, primarily due to increased consulting and accounting fees (which are
quoted in foreign currency), traveling expenses, and stamp duty expenses.
· Advertising expenses rose by 54% year-on-year as the Company invested
in the ramp-up of its operations in Saudi Arabia, which kicked off in Q1 2024.
More specifically, advertisement costs booked in Saudi Arabia throughout FY
2024 represented 27% of the Company's total advertising costs for the year.
Selling, General, and Administrative Expenses
EGP mn FY 2023 FY 2024 Change
Wages & Salaries 282 389 38%
Accounting and Professional Fees 134 175 31%
Market - Advertisement expenses 98 151 54%
Other Expenses - Operation 143 170 19%
Depreciation & Amortisation 39 41 5%
Impairment Loss on Trade and Other Receivable 51 48 -6%
Travelling and Transportation Expenses 27 39 44%
Impairment in Assets 7 - N/A
Impairment in Goodwill 11 - ""
Provision for End of Service - 2 ""
Provision for Legal Claims 3 6 100%
Provision for Egyptian Government Training Fund for Employees 12 1 -92%
Other Income (20) (55) 175%
Total 787 967 23%
EBITDA
IDH reported an EBITDA of EGP 1,697 million in FY 2024, a year-on-year
improvement of 49% supported by strong revenue growth and effective cost
optimisation efforts at the COGS and SG&A levels throughout the year. This
translated to an EBITDA margin expansion to 30% for FY 2024 compared to 29% in
the previous year.
It is worth noting that EBITDA in FY 2024 was impacted by EGX delisting fees
of EGP 34 million. Adjusting for non-recurring items, IDH's EBITDA for the
period would stand at EGP 1,731 million.
Adjusted EBITDA Calculation
EGP mn FY 2023 FY 2024 Change
Profit from Operations 738 1,214 65%
Property, Plant and Equipment and Right of Use Depreciation 393 474 20%
Amortization of Intangible Assets 8 9 17%
EBITDA 1,139 1,697 49%
Non-recurring Items 53 34 -36%
Adjusted EBITDA 1,192 1,731 45%
Adjusted EBITDA Margin 28.9% 30.3% 1.3 pts.
Adjusted EBITDA by Country
In Egypt, IDH recorded an adjusted EBITDA of EGP 1,617 million, up 53%
year-on-year and with a margin of 34% in FY 2024 versus 31% in FY 2023.
Improved EBITDA profitability was a result of both enhanced gross
profitability in the country combined with optimised SG&A expenses for the
year (16% of revenue in FY 2024 versus 18% of revenue in FY 2023), with
notable improvements in indirect salary and wage outlays for the twelve-month
period.
In Jordan, Biolab's adjusted EBITDA grew 6% year-on-year to reach JOD 3.9
million in FY 2024. Adjusted EBITDA margin for the year recorded 28%, up from
last year's 26% margin. In EGP terms, adjusted EBITDA recorded EGP 253
million, up a solid 61% year-on-year, largely due to the translation effect
from a weaker EGP over the past twelve months.
In Nigeria, a weakening Naira and high inflation weighed on Echo-Lab's
profitability for the year. More specifically, adjusted EBITDA losses expanded
to NGN 846 million in FY 2024 from last year's adjusted EBITDA losses of NGN
498 million. In EGP terms, adjusted EBITDA losses came in at EGP 26 million
for the year, compared to adjusted EBITDA losses of EGP 25 million last year.
In Saudi Arabia, adjusted EBITDA losses amounted to SAR 9 million (EGP 113
million) as the business remains in its early ramp up phase.
Regional Adjusted EBITDA in Local Currency
FY 2023 FY 2024 Change
Egypt Adjusted EBITDA (EGP mn) 1,058 1,617 53%
Margin 31.0% 34.3% 3.3 pts.
Jordan Adjusted EBITDA (JOD mn) 3.6 3.9 6%
Margin 26.0% 27.7% 1.7 pts.
Nigeria Adjusted EBITDA (NGN mn) (498) (846) 70%
Margin -25.4% -31.1% -5.7 pts.
Saudi Arabia Adjusted EBITDA (SAR mn) - (9) -
Margin - - -
Sudan Adjusted EBITDA (SDG mn) 21 2 -91%
Margin 9.7% 2.0% -7.7 pts.
Interest Income / Expense
IDH's interest income came in at EGP 145 million in FY 2024, increasing 99%
year-on-year. Higher interest income during the past year reflects higher
interest rates in Egypt, where the Central Bank of Egypt (CBE) raised rates by
a cumulative 800 basis points in the first quarter of the year.
Interest expense(9) recorded EGP 197 million in FY 2024, up 22% 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 17 million in FY 2024
from EGP 12 million in FY 2023 reflecting higher revenue for the year.
· Higher interest expenses following the CBE decision to increase
rates in February and March 2024. It is important to note that IDH's interest
bearing debt(10) (excluding accrued interest) increased during FY 2024 to
reach EGP 265 million as at 31 December 2024, from EGP 111 million at year-end
2023. The increase comes as the Group secured an EGP 162 million loan to
finance its acquisition of Izhoor's stake in Biolab KSA. It is also worth
highlighting that in the previous year (FY 2023), as part of IDH's strategy to
reduce foreign currency risk, the Company agreed with General Electric (GE)
for the early repayment of its contractual obligation of USD 5.7 million. Half
the settlement was financed utilising internal funds, while the remaining
amount (EGP 55 million) was financed through a bridge loan by Ahly United
Bank- Egypt (AUBE). Interest expenses related to the AUBE facility recorded
EGP 21 million in 2024. The bridge loan was fully settled in Q2 2023.
· Fast track payments worth EGP 9 million, which encompass
discounts provided for the rapid payment of receivables in FY 2024.
Interest Expense Breakdown
EGP mn FY 2023 FY 2024 Change
Interest on Financial Obligations 93 113 21%
Interest Expenses on Leases 25 34 34%
Interest Expenses on Borrowings(11) 23 24 5%
Bank Charges 12 17 43%
Fast Track Payment 7 9 25%
Total Interest Expense 161 197 22%
Foreign Exchange(12)
IDH booked a foreign exchange gain of EGP 303 million in FY 2024, up from EGP
88 million during the previous year. The foreign exchange gain was due 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 431 million in
FY 2024, 60% above last year's figure. IDH's effective tax rate declined to
30% in FY 2024 from 36% in FY 2023. The decline in the effective tax rate was
primarily due to the increase in foreign exchange gain recorded during the
years as a result of intercompany transactions. It is important to highlight
that there is no tax payable for IDH's two holding-level companies.
Taxation Breakdown by Region
EGP mn FY 2023 FY 2024 Change
Egypt 252 397 58%
Jordan 17 31 82%
Nigeria (0.1) 0.2 N/A
KSA - 3 N/A
Sudan 0.5 (0.01) N/A
Total Tax Expenses 269 431 60%
Net Profit
IDH recorded net profit of EGP 1,008 million in FY 2024, more than doubling
the previous year's net profit of EGP 468 million. The remarkable year-on-year
increase was boosted by the increase in foreign exchange gain from
intercompany transactions. Meanwhile, the Company's NPM came in at 18% in FY
2024 compared to 11% in FY 2023.
When controlling for contributions from foreign exchange gains during both
years, IDH booked an adjusted net profit of EGP 705 million in FY 2024,
growing 85% year-on-year from EGP 381 million during FY 2023. The Company's
adjusted net profit margin stood at 12% during the past year, up from 9% in FY
2023.
Raw material costs (36% of consolidated COGS in FY 2024) was the largest
contributor to COGS for the year, having increased 38% year-on-year to reach
EGP 1,257 million. However, as a share of revenue, raw materials declined
marginally to 22.0% in FY 2024 from 22.2% in the previous year. The decline is
directly attributable to the Company's proactive inventory management and
strong supplier relationships, which continue to shield its cost base from
inflationary pressures and a weaker EGP.
Wages and salaries, which include employee share of profits (30% share of
consolidated COGS in FY 2024), remained the second largest contributor to
IDH's total COGS during FY 2024, recording EGP 1,063 million, up 37%
year-on-year. As a percentage of revenue, direct wages and salaries declined
to 18.6% in FY 2024, down from 18.8 % in FY 2023. This decline reflects IDH's
efforts since the start of the year to optimize headcount.
Direct Wages and Salaries by Region
FY 2023 FY 2024 Change
Egypt (EGP mn) 589 774 31%
Jordan (EGP mn) 155 242 56%
Jordan (JOD mn) 3.6 3.8 5%
Nigeria (EGP mn) 27 22 -19%
Nigeria (NGN mn) 576 726 26%
Saudi Arabia (EGP mn) - 25 N/A
Saudi Arabia (SAR k) - 2 N/A
Sudan (EGP mn) 3 0.6 -79%
Sudan (SDG mn) 53 10 -81%
Direct depreciation and amortization costs (12% of consolidated COGS in FY
2024) rose 22% year-on-year to EGP 442 million in FY 2024. The rise in
depreciation expenses is attributed to the expansion of IDH's branch network,
which saw the addition of 43 new branches in Egypt and two in Saudi Arabia
compared to this time last year. However, as a percentage of revenue, direct
depreciation and amortization declined to 7.7% in FY 2024 from 8.8% in the
previous year.
Other expenses (22% of consolidated COGS in FY 2024) recorded EGP 777 million
in FY 2024, representing a growth versus the previous year of 42%. Other
expenses as a percentage of revenues stood at 13.6% largely unchanged from FY
2023. The main components making up other expenses during the past year were
repair and maintenance fees, hospital contracts, cleaning costs,
transportation, and license expenses.
Gross Profit
IDH reported a gross profit of EGP 2,182 million in FY 2024, up 43%
year-on-year. Gross profit margin (GPM) also improved to 38%, as IDH's COGS as
a percentage of revenue declined reflecting lower depreciation as a percentage
of revenue thanks to enhanced fixed asset utilization, decreased direct salary
expenses relative to revenue as a result of IDH's efforts to optimise
headcount over the past year, as well as lower raw materials to sales as the
Group continued to leverage its supplier relationships to secure advantageous
prices for its inventory.
Selling, General, and Administrative (SG&A) Expenses
SG&A outlays for the year came in at EGP 967 million in FY 2024, an
increase of 23% from FY 2023. However, as a percentage of revenues, SG&A
accounted for 17%, down from 19% in the previous year. The rise in SG&A
expenses was mainly due to:
· Indirect wages and salaries reached EGP 389 million, a 38% increase
compared to the previous year. The increase from FY 2023 was driven by annual
wage increases and the translation effect from Jordanian salaries as well as
Saudi Arabian salaries due to a weakened EGP. However, indirect salaries and
wages as a percentage of revenue remained largely stable at 6.8% owing to
IDH's headcount optimisation strategy.
· Other G&A expenses increased by 27% year-on-year to EGP 324
million, primarily due to increased consulting and accounting fees (which are
quoted in foreign currency), traveling expenses, and stamp duty expenses.
· Advertising expenses rose by 54% year-on-year as the Company invested
in the ramp-up of its operations in Saudi Arabia, which kicked off in Q1 2024.
More specifically, advertisement costs booked in Saudi Arabia throughout FY
2024 represented 27% of the Company's total advertising costs for the year.
Selling, General, and Administrative Expenses
EGP mn FY 2023 FY 2024 Change
Wages & Salaries 282 389 38%
Accounting and Professional Fees 134 175 31%
Market - Advertisement expenses 98 151 54%
Other Expenses - Operation 143 170 19%
Depreciation & Amortisation 39 41 5%
Impairment Loss on Trade and Other Receivable 51 48 -6%
Travelling and Transportation Expenses 27 39 44%
Impairment in Assets 7 - N/A
Impairment in Goodwill 11 - ""
Provision for End of Service - 2 ""
Provision for Legal Claims 3 6 100%
Provision for Egyptian Government Training Fund for Employees 12 1 -92%
Other Income (20) (55) 175%
Total 787 967 23%
EBITDA
IDH reported an EBITDA of EGP 1,697 million in FY 2024, a year-on-year
improvement of 49% supported by strong revenue growth and effective cost
optimisation efforts at the COGS and SG&A levels throughout the year. This
translated to an EBITDA margin expansion to 30% for FY 2024 compared to 29% in
the previous year.
It is worth noting that EBITDA in FY 2024 was impacted by EGX delisting fees
of EGP 34 million. Adjusting for non-recurring items, IDH's EBITDA for the
period would stand at EGP 1,731 million.
Adjusted EBITDA Calculation
EGP mn FY 2023 FY 2024 Change
Profit from Operations 738 1,214 65%
Property, Plant and Equipment and Right of Use Depreciation 393 474 20%
Amortization of Intangible Assets 8 9 17%
EBITDA 1,139 1,697 49%
Non-recurring Items 53 34 -36%
Adjusted EBITDA 1,192 1,731 45%
Adjusted EBITDA Margin 28.9% 30.3% 1.3 pts.
Adjusted EBITDA by Country
In Egypt, IDH recorded an adjusted EBITDA of EGP 1,617 million, up 53%
year-on-year and with a margin of 34% in FY 2024 versus 31% in FY 2023.
Improved EBITDA profitability was a result of both enhanced gross
profitability in the country combined with optimised SG&A expenses for the
year (16% of revenue in FY 2024 versus 18% of revenue in FY 2023), with
notable improvements in indirect salary and wage outlays for the twelve-month
period.
In Jordan, Biolab's adjusted EBITDA grew 6% year-on-year to reach JOD 3.9
million in FY 2024. Adjusted EBITDA margin for the year recorded 28%, up from
last year's 26% margin. In EGP terms, adjusted EBITDA recorded EGP 253
million, up a solid 61% year-on-year, largely due to the translation effect
from a weaker EGP over the past twelve months.
In Nigeria, a weakening Naira and high inflation weighed on Echo-Lab's
profitability for the year. More specifically, adjusted EBITDA losses expanded
to NGN 846 million in FY 2024 from last year's adjusted EBITDA losses of NGN
498 million. In EGP terms, adjusted EBITDA losses came in at EGP 26 million
for the year, compared to adjusted EBITDA losses of EGP 25 million last year.
In Saudi Arabia, adjusted EBITDA losses amounted to SAR 9 million (EGP 113
million) as the business remains in its early ramp up phase.
Regional Adjusted EBITDA in Local Currency
FY 2023 FY 2024 Change
Egypt Adjusted EBITDA (EGP mn) 1,058 1,617 53%
Margin 31.0% 34.3% 3.3 pts.
Jordan Adjusted EBITDA (JOD mn) 3.6 3.9 6%
Margin 26.0% 27.7% 1.7 pts.
Nigeria Adjusted EBITDA (NGN mn) (498) (846) 70%
Margin -25.4% -31.1% -5.7 pts.
Saudi Arabia Adjusted EBITDA (SAR mn) - (9) -
Margin - - -
Sudan Adjusted EBITDA (SDG mn) 21 2 -91%
Margin 9.7% 2.0% -7.7 pts.
Interest Income / Expense
IDH's interest income came in at EGP 145 million in FY 2024, increasing 99%
year-on-year. Higher interest income during the past year reflects higher
interest rates in Egypt, where the Central Bank of Egypt (CBE) raised rates by
a cumulative 800 basis points in the first quarter of the year.
Interest expense(9) recorded EGP 197 million in FY 2024, up 22% 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 17 million in FY 2024
from EGP 12 million in FY 2023 reflecting higher revenue for the year.
· Higher interest expenses following the CBE decision to increase
rates in February and March 2024. It is important to note that IDH's interest
bearing debt(10) (excluding accrued interest) increased during FY 2024 to
reach EGP 265 million as at 31 December 2024, from EGP 111 million at year-end
2023. The increase comes as the Group secured an EGP 162 million loan to
finance its acquisition of Izhoor's stake in Biolab KSA. It is also worth
highlighting that in the previous year (FY 2023), as part of IDH's strategy to
reduce foreign currency risk, the Company agreed with General Electric (GE)
for the early repayment of its contractual obligation of USD 5.7 million. Half
the settlement was financed utilising internal funds, while the remaining
amount (EGP 55 million) was financed through a bridge loan by Ahly United
Bank- Egypt (AUBE). Interest expenses related to the AUBE facility recorded
EGP 21 million in 2024. The bridge loan was fully settled in Q2 2023.
· Fast track payments worth EGP 9 million, which encompass
discounts provided for the rapid payment of receivables in FY 2024.
Interest Expense Breakdown
EGP mn FY 2023 FY 2024 Change
Interest on Financial Obligations 93 113 21%
Interest Expenses on Leases 25 34 34%
Interest Expenses on Borrowings(11) 23 24 5%
Bank Charges 12 17 43%
Fast Track Payment 7 9 25%
Total Interest Expense 161 197 22%
Foreign Exchange(12)
IDH booked a foreign exchange gain of EGP 303 million in FY 2024, up from EGP
88 million during the previous year. The foreign exchange gain was due 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 431 million in
FY 2024, 60% above last year's figure. IDH's effective tax rate declined to
30% in FY 2024 from 36% in FY 2023. The decline in the effective tax rate was
primarily due to the increase in foreign exchange gain recorded during the
years as a result of intercompany transactions. It is important to highlight
that there is no tax payable for IDH's two holding-level companies.
Taxation Breakdown by Region
EGP mn FY 2023 FY 2024 Change
Egypt 252 397 58%
Jordan 17 31 82%
Nigeria (0.1) 0.2 N/A
KSA - 3 N/A
Sudan 0.5 (0.01) N/A
Total Tax Expenses 269 431 60%
Net Profit
IDH recorded net profit of EGP 1,008 million in FY 2024, more than doubling
the previous year's net profit of EGP 468 million. The remarkable year-on-year
increase was boosted by the increase in foreign exchange gain from
intercompany transactions. Meanwhile, the Company's NPM came in at 18% in FY
2024 compared to 11% in FY 2023.
When controlling for contributions from foreign exchange gains during both
years, IDH booked an adjusted net profit of EGP 705 million in FY 2024,
growing 85% year-on-year from EGP 381 million during FY 2023. The Company's
adjusted net profit margin stood at 12% during the past year, up from 9% in FY
2023.
(9) Interest expenses on medium-term loans include EGP 21 million (EGP 23
million in 2023) related to the Group's facility with Ahli United Bank Egypt
(AUBE).
(10) IDH's interest bearing debt as at 31 December 2024 included EGP 85
million (EGP 108 million as at 31 December 2023) related to its facility with
Ahli United Bank Egypt (AUBE) (outstanding loan balances are excluding accrued
interest for the period).
(11) Interest expenses on medium-term loans include EGP 21 million (EGP 23
million in 2023) related to the Group's facility with Ahli United Bank Egypt
(AUBE).
(12) 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 3,111 million as at year-end 2024, up from EGP
2,565 million at the end of 2023. The rise in CAPEX as a share of revenue in
the year that just ended largely reflects the addition of new branches,
renovation of existing branches, improvements of IDH's headquarters
(constituting 3.7% of revenues), in addition to the translation effect related
to Jordan, Nigeria, Saudi Arabia, and Sudan (comprising 6.2% of revenues).
Total CAPEX Addition Breakdown - FY 2024
EGP mn FY 2024 % of Revenue
Leasehold Improvements/new branches 168 2.9%
Al-Borg Scan Expansion 41 0.7%
CAPEX Additions 209 3.7%
Translation Effect 357 6.2%
Disposals (20) -0.3%
Total Increase in PPE Cost 546 9.5%
Trade Receivables and Provisions
Net trade receivables at 31 December 2024 amounted to EGP 804 million, up 41%
versus the balance at year-end 2023. Meanwhile, IDH's net receivables' Days on
Hand booked 140 days, up from 134 days at the end of 2023.
Provision charges for doubtful accounts in FY 2024 stood at EGP 48 million,
compared to EGP 51 million in FY 2023. It is worth noting that provisions as a
percentage of both accounts receivable and revenue decreased versus the
previous year reflecting an improvement in overall economic conditions,
increased stability, and reduced inflation across IDH's markets of operation.
Inventory
At 31 December 2024, IDH booked an inventory balance of EGP 318 million, down
15% compared to inventory booked at year-end 2023. Meanwhile, Days Inventory
Outstanding (DIO) decreased to 105 days, from 133 days at 31 December 2023.
With improvements in the economic situation and a continued positive outlook,
the Company has been reducing DIO as the previous stockpiling is no longer
necessary.
Cash and Net Debt
Cash balances and financial assets at amortised cost at 31 December 2024
reached EGP 1,716 million, up from EGP 835 million at year-end 2023.
EGP mn 31 December 2023 31 December 2024
Treasury Bills 133 74
Time Deposits 289 1,126
Current Accounts 392 494
Cash on Hand 21 23
Total 835 1,716
IDH's net cash(13) balance recorded EGP 226 million as at 31 December 2024,
compared to a net debt of EGP 358 million as at year-end 2023.
EGP mn 31 December 2023 31 December 2024
Cash and Financial Assets at Amortised Cost(14) 835 1,716
Lease Liabilities Property* (828) (943)
Total Financial Liabilities (Short-term and Long-term) (240) (264)
Interest Bearing Debt ("Medium Term Loans")** (125) (283)
Net Cash/(Debt) Balance (358) 226
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 1,169 million.
**Includes accrued finance cost included in note 22 and amounts owed to
shareholder in note 26 of the Company's FY 2024 financial statements.
Lease liabilities and financial obligations on property recorded EGP 943
million at 31 December 2024, up versus the figure recorded at year-end 2023.
The rise is principally attributable to the translation effect of
JOD-denominated liabilities in Jordan following the devaluation of the EGP in
early 2024.
Meanwhile, financial obligations related to equipment came in at EGP 264
million as at year-end 2024, with the rise versus the balance at the end of
the previous year reflecting a rise in USD-linked contracts with equipment
suppliers following the devaluation of the EGP.
Finally, interest bearing debt(15) (excluding accrued interest) reached EGP
265 million at the end of FY 2024, up from EGP 111 million at year-end 2023.
The increase comes as IDH secured a loan to finance the acquisition of
Izhoor's stake in Biolab KSA as previously mentioned.
Liabilities
Trade Payable(16)
Trade payable as of 31 December 2024 stood at EGP 320 million, up from EGP 272
million at the end of 2023. Meanwhile, Days Payable Outstanding (DPO) came in
at 90 days, down from 113 days at 31 December 2023.
Put Option
The put option current liability stood at EGP 532 million as at year-end 2024,
up from EGP 314 million at 31 December 2023, 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.
Trade Receivables and Provisions
Net trade receivables at 31 December 2024 amounted to EGP 804 million, up 41%
versus the balance at year-end 2023. Meanwhile, IDH's net receivables' Days on
Hand booked 140 days, up from 134 days at the end of 2023.
Provision charges for doubtful accounts in FY 2024 stood at EGP 48 million,
compared to EGP 51 million in FY 2023. It is worth noting that provisions as a
percentage of both accounts receivable and revenue decreased versus the
previous year reflecting an improvement in overall economic conditions,
increased stability, and reduced inflation across IDH's markets of operation.
Inventory
At 31 December 2024, IDH booked an inventory balance of EGP 318 million, down
15% compared to inventory booked at year-end 2023. Meanwhile, Days Inventory
Outstanding (DIO) decreased to 105 days, from 133 days at 31 December 2023.
With improvements in the economic situation and a continued positive outlook,
the Company has been reducing DIO as the previous stockpiling is no longer
necessary.
Cash and Net Debt
Cash balances and financial assets at amortised cost at 31 December 2024
reached EGP 1,716 million, up from EGP 835 million at year-end 2023.
EGP mn 31 December 2023 31 December 2024
Treasury Bills 133 74
Time Deposits 289 1,126
Current Accounts 392 494
Cash on Hand 21 23
Total 835 1,716
IDH's net cash(13) balance recorded EGP 226 million as at 31 December 2024,
compared to a net debt of EGP 358 million as at year-end 2023.
EGP mn 31 December 2023 31 December 2024
Cash and Financial Assets at Amortised Cost(14) 835 1,716
Lease Liabilities Property* (828) (943)
Total Financial Liabilities (Short-term and Long-term) (240) (264)
Interest Bearing Debt ("Medium Term Loans")** (125) (283)
Net Cash/(Debt) Balance (358) 226
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 1,169 million.
**Includes accrued finance cost included in note 22 and amounts owed to
shareholder in note 26 of the Company's FY 2024 financial statements.
Lease liabilities and financial obligations on property recorded EGP 943
million at 31 December 2024, up versus the figure recorded at year-end 2023.
The rise is principally attributable to the translation effect of
JOD-denominated liabilities in Jordan following the devaluation of the EGP in
early 2024.
Meanwhile, financial obligations related to equipment came in at EGP 264
million as at year-end 2024, with the rise versus the balance at the end of
the previous year reflecting a rise in USD-linked contracts with equipment
suppliers following the devaluation of the EGP.
Finally, interest bearing debt(15) (excluding accrued interest) reached EGP
265 million at the end of FY 2024, up from EGP 111 million at year-end 2023.
The increase comes as IDH secured a loan to finance the acquisition of
Izhoor's stake in Biolab KSA as previously mentioned.
Liabilities
Trade Payable(16)
Trade payable as of 31 December 2024 stood at EGP 320 million, up from EGP 272
million at the end of 2023. Meanwhile, Days Payable Outstanding (DPO) came in
at 90 days, down from 113 days at 31 December 2023.
Put Option
The put option current liability stood at EGP 532 million as at year-end 2024,
up from EGP 314 million at 31 December 2023, 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.
(13) 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.
(14) As outlined in Note 18 of IDH's Consolidated Financial Statements, 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 468 million at 31 December 2024 (2023: EGP 49
million). Meanwhile, treasury bills not accessible for over three months stood
at EGP 60 million (2023: EGP 112 million).
(15) IDH's interest bearing debt as at 31 December 2024 included EGP 85
million to its facility with Ahli United Bank Egypt (AUBE) (outstanding loan
balances are excluding accrued interest for the period). It is worth noting
that in order to finance the early repayment settlement with General Electric,
the Company utilized a bridge loan facility of EGP 55 million. The facility
was withdrawn in Q1 2023 and settled in Q2 2023.
(16) Accounts payable is calculated based on average payables at the end of
each period.
iii. Principal Risks, Uncertainties, & Their Mitigation
As is typical with any corporation, IDH is exposed to certain risks and
uncertainties which may yield adverse effects on the Company's performance.
IDH's Chair, Lord St John of Bletso, continually emphasises the importance of
the risk matrix as an integral driver of the Group's long-term success, and
one which must be equally shared by the Board of Directors and senior
management.
While no system is capable of mitigating every risk, and while some risks, as
at the country level, are largely without potential mitigants, the Group has
placed complex processes, procedures, and baseline assumptions which provide
mitigation. The Board and senior management agree that the principal risks and
uncertainties facing the Group include:
Specific Risk Mitigation
Country/regional risk - Economic & Forex
Egypt: IDH is directly impacted by the economic conditions of its largest Overall, management reiterates that IDH employs a robust and resilient
market, Egypt, and, to a lesser extent, those of its other operating business model which has helped the Company navigate several economic and
geographies. Egypt accounted for 83% of consolidated revenues in 2024 (83% in political downturns, including two revolutions, while allowing the business to
2023) and 93% of adjusted EBITDA (89% in 2023). expand its offering and record positive growth across key operational and
financial performance indicators. Moreover, as part of IDH's long-term growth
strategy, the Company is working to diversify its geographic exposure
decreasing its exposure to any single country. To this end in January 2024,
Starting in early 2022, IDH's home and largest market has been directly the Company launched its Saudi Arabian venture under the name Biolab KSA. Once
impacted by the Russian-Ukraine war due to the country's reliance on wheat fully ramped up, the venture will offer a full suite of diagnostic testing
imports and tourism revenue from both countries and its exposure to capital services.
outflows at times of global or regional economic uncertainty. The latter was
further exacerbated by a global tightening of monetary conditions to combat
record-high inflation during the post-Covid-19 recovery and widespread outflow
of capital from emerging markets. Meanwhile, in the final months of 2023 and IDH has maintained an active approach in shielding the business from exchange
throughout all of 2024, the country was also directly impacted by the ongoing rate fluctuations in its markets. As part of its mitigation efforts, IDH
war in Gaza. In particular, the most recent escalation has weighed on the negotiates contracts with tenures ranging from 5 to 7 years (at fixed FX
country's tourism and Suez Canal revenues, both of which represent an rates, which only get revised once the currency surpasses an agreed upon
important source of foreign currency for the Egyptian government. Moreover, value) and purchases laboratory test kits on contract with volume-linked
due to Egypt's reliance on Israeli natural gas imports, the conflict (which prices. Meanwhile, thanks to its large scale and longstanding supplier
temporarily came to a halt in January 2025 before restarting on 18 March 2025) relationships, the Company is able to secure favourable test kit prices with
led to a worsening of an already ongoing electricity crisis, which saw the all its major suppliers. Additionally, the Company takes proactive steps to
government impose multi-hour blackouts throughout the summer and fall months hedge against foreign currency risks on a case-by-case basis whenever
of 2023. While these blackouts were temporarily reintroduced in the spring applicable.
months of 2024, they were officially ceased in the summer and fall months
following the announcement of a new energy import programme from the Egyptian
government.
Meanwhile, the Group's asset-light model allows for minimal borrowing and
significant strategic flexibility, providing it with ample leeway to navigate
challenging times while supporting its expansion plans even in high interest
It is worth noting that while Egypt's situation remains uncertain, starting in rate environments.
late February 2024, conditions on the ground have gradually improved thanks to
the government's efforts to tackle the shortage of foreign reserves (FX) and
implement lasting reforms to strengthen the economy's resilience. Key efforts
included the historic decision to float the Egyptian Pound (EGP) in March 2024
and raise interest rates by a cumulative 800 basis points since the start of
the year. Throughout the spring months of 2024, Egypt also secured investments
and funding/loan packages from Abu Dhabi's ADQ fund, the IMF, and the EU. The
country has also eliminated the parallel foreign exchange market helping to
redirect remittances to official channels and attract FDI back to the country.
Finally, the government has also revitalized its privatization and fiscal
reform programme, aiming to alleviate the public sector's burden by shifting
activities to the private sector. As a result of its efforts, Egypt has seen
the EGP settle in the range of 47 to 50 to the US Dollar since its floatation
in early March 2024.
A weaker EGP coupled with the widespread removal of subsidies has weighed on
inflation which remains well above the Egyptian Central Bank's targets.
Headline inflation peaked at 35.7% in February 2024, and averaged 28.5% for
2024. Meanwhile, the Egyptian Central Bank's (CBE) main operations and
discount rates stood at 27.25% in early March 2024, up 800 basis points from
January 2023 and from 9.75% in March 2022 before the start of the latest
economic crisis.
Egypt held presidential elections in December 2023, which saw President
Abdelfattah El Sisi win a new six-year mandate. The new cabinet was sworn in
at the start of the new fiscal year in July 2024.
Foreign currency risk: IDH is exposed to foreign currency risk, placing
potential pressure on the cost side of the business. Despite the majority of
the Company's suppliers receiving payments in EGP, due to the fact that
materials are imported, prices vary based on the exchange rate between EGP and
foreign currencies. Moreover, a small portion of suppliers are priced in
foreign currency and paid in EGP based on the prevalent exchange rate at the
time of purchase. It is important to note that starting in spring 2024, FX
availability for importers significantly improved with priority sectors able
to access the needed capital to fulfil obligations and resume normal business
operations.
Nigeria: following the election of Bola Ahmed Tinubu in February 2023, the
Nigerian Naira (NGN) was allowed to float. Within the first day, the Naira
lost approximately 29% of its value, with its long-term value expected to
stabilise at NGN 650-700 to the US Dollar. Throughout 2024, the Naira
continued to weaken having started the year at around NGN 900 to the US Dollar
and having ended it at NGN 1,544 to the US Dollar. Despite this strategic
importance of the floatation, experts believe that more policy reforms are
required to affect tangible economic change in the country.
As a result of the devaluation and foreign currency shortages, Nigerian
inflation has maintained an upward trend, with inflation rates averaging 33.2%
throughout 2024 (24.7% in 2023) and diesel prices continuing to soar. It is
important to note that analysts at Fitch Solutions sees the Naira depreciating
a further 21% over the course of 2025, to average NGN 1,785 to the US Dollar. During 2024, none of the Company's cost of supplies were payable in US
Dollars, minimizing exposure to foreign currency risk. Furthermore, the
Company's proactive inventory and supplier management strategy has seen it
able to contain the impacts of a weaker EGP and rising inflation on its raw
material expenses with its raw material to sales ratio remaining largely
unchanged year-on-year in 2024 at 22.0% (versus 22.2% in 2023 and 20.4% in
2022). The Company will continue to capitalise on its established reputation
and position as a leading diagnostic services provider in the region to
negotiate favourable prices and mitigate the impact of foreign currency
fluctuations whenever possible.
It is important to highlight that starting January 2024, IDH has renegotiated
the terms of its contracts with its major suppliers to pay for its supplies in
EGP. Some contracts with major suppliers, however, are fixed at USD prices,
with payments made in EGP at the official exchange rate at the time of
payment. As such, there have been no USD payments for supplies since the
beginning of 2024.
In response to the high inflationary pressures in Nigeria, management is
methodically implementing cost optimisation strategies, while implementing
price increases across its service portfolio. In 2024, average revenue per
test in Nigeria rose 60% year-on-year in local currency terms, signalling the
effectiveness of management's pricing strategies.
It is worth noting that Nigerian operations are naturally shielded from
foreign currency risk and inflation, due to IDH's asset base in the country
which can be sold in US Dollars.
Country risk - Political & Security
Sudan: Sudan's economic progress continues to be affected by economic and It is worth highlighting that in 2024 Sudan only constituted 0.05% of
political turmoil, starting with the secession of South Sudan in 2011 and the consolidated revenues. With regards to the ongoing conflict, management
associated loss of the majority of the country's oil production. This unrest continues to actively monitor the evolving situation on the ground, taking all
continued throughout the remainder of the decade, eventually culminating in necessary measures to safeguard its operations and guarantee the health and
the removal of the country's president, President Al-Bashir, in 2019 via a safety of its personnel and patients. This included the temporary suspension
military coup. Despite a significant easing of tensions in 2022, a violent of all commercial activities at the start of the conflict at 17 of its 18
conflict erupted in April 2023 between two rival groups; the Sudanese Armed branches. IDH is also taking steps to keep its stakeholders updated on the
Forces (SAF) and the Rapid Support Forces (RSF). The conflict is currently developing situation.
ongoing and as of year-end 2024, medics on the ground place the total dead at
between 20 thousand and 150 thousand, with more than 10 million said to have
been displaced as a result of the fighting. The conflict has resulted in the
indefinite closure of nearly all of IDH's branches in the country, with
currently only one operational branch remaining (which was also temporarily
closed throughout spring and summer of 2024).
Nigeria: the country faces security challenges on several fronts, including
re-emerging ethnic tensions and resurgent attacks by Islamist militants in the
northeast. Political instability is further magnified by economic pressures,
with several currency devaluations, the emergence of a parallel foreign
currency market, increased inflation, and spiking diesel prices following
subsidy removal. Economic pressures culminated in a Nigerian Union strike in
September 2023 to protest subsidy removal and its subsequent effects. Strike
action continued throughout 2024 as Nigerians face quickly eroding purchasing
power due to inflation remaining high and salary increases lagging.
In 2024 Nigeria comprised just 1.4% of IDH's consolidated revenues.
Additionally, while security and political challenges do impact operations in
the country, IDH's industry continued to be largely inelastic by nature, with
patient and test volumes remaining relatively resilient throughout economic
cycles. This is particularly apparent given the consistent growth in
operational KPIs, with test and patient volumes recording a compound annual
growth rate of 5.2% and 1.2%, respectively, between 2019 and 2024. It is
important to mention, however, that recent economic downturns in Nigeria have
weighed on IDH's financial and operational performance in the country, with
the Group recording a 13% year-on-year decline in test volumes in 2024 while
booking adjusted EBITDA losses of NGN 846 million (EGP 26 million) during the
year.
While these political challenges are particularly difficult to mitigate, IDH
continued to take all necessary steps to safeguard its employees and
operations. The Group employs rigorous standards to evaluate the country's
political climate, ensuring it is well-equipped to deal with any developments
as they unfold.
Middle East Conflicts
The latest escalation of the long-lasting Israeli Palestinian conflict erupted While this specific conflict has no direct mitigations from the Company's
on 7 October 2023 following an attack by Gaza-based group, Hamas. Israel side, IDH continues to actively monitor the situation, placing an emphasis on
responded by launching a retaliation campaign on Gaza, enacting a remaining updated on the impacts of the war on IDH's markets of operation and
15-month-long total siege on the territory. As of the end of February 2025, the subsequent repercussions on IDH's business.
the conflict has resulted in the death of over 63,000 people and the injury of
an additional 100,000. The conflict also expanded into Lebanon with Israel
launching a ground invasion into the country in September 2024. It is worth
noting that Israel's attacks on Gaza and Lebanon were temporarily halted after However, it is worth noting that IDH's business is inherently resilient to
the parties involved agreed to cease fire agreements and the gradual release macroeconomic and political difficulties, due to its inelastic nature of
of hostages held by both sides. Fighting in Gaza has since restarted, with a healthcare and diagnostics demand. While the Company does not expect any major
new Israeli campaign commencing on 18 March 2025. direct impact from this war on its operations, it will continue monitoring
events and update the market, as necessary.
With the Gaza Strip bordering IDH's home and largest market, Egypt, and with
several other of the Company's geographies situated within the region, namely
Jordan and Saudi Arabia, the continued conflict between Israel and Palestine
creates the potential for significant economic and political headwinds. The
conflict has the potential to affect tourism revenues in neighbouring
countries, while shaking investor confidence and potentially leading to an
outflow of foreign investment.
Since the beginning of the conflict, Egypt has been adversely affected due to
natural gas import cuts from Israel, resulting in shortages and necessitating
the introduction of scheduled electricity cuts nationwide to cope for the lack
of supply. Meanwhile, tourism has remained resilient with the country
recording record-high volumes in 2023 and 2024. Finally, due to ongoing
attacks by Houthi rebels on ships transiting through the Red Sea, Egypt
recorded a decline of 61% year-on-year in revenues from the Suez Canal
throughout 2024 as major shipping companies redirected traffic to other trade
routes.
Global Supply Chain Disruptions
While disruptions to global supply chains, which negatively impacted IDH's management team continually monitors the evolving situation and have
businesses and consumers all over the world during the post-Covid-19 recovery taken proactive steps to build up its inventory to shield the Group from any
have partially eased, they remain well below optimal levels of efficiency. potential future disruptions. IDH is in continual dialogue with key suppliers
Throughout 2024, the main challenges weighing on global supply chains globally to gauge the risk associated with a shortage of materials and is yet to
included missile attacks on commercial shipping in the Red Sea, automotive identify a weakness. Throughout 2024, thanks to IDH's proactive inventory
production delays following floods in Europe, and trade tensions slowing the build-up and sourcing strategy, the Group continued to face no problems
movement of semiconductor products, manufacturing equipment, and critical acquiring raw materials.
materials. Despite this, global supply chain disruptions have had limited
impacts on IDH's operations throughout 2024 and earlier years.
Supplier Risk
IDH faces the risk of suppliers re-opening price negotiations in the face of IDH boasts strong, longstanding relationships with its key suppliers, to whom
increased inflationary pressures and/or a possible, albeit limited, IDH remains a large regional client. Due to the sheer volume of kits the Group
devaluation risk. purchases on a regular basis, the Company is able to successfully secure
favourable pricing conditions and mitigate the impacts of inflationary
pressures to maintain relatively stable raw material costs as a percentage of
revenues.
IDH's supplier risk is concentrated amongst its three largest suppliers -
Siemens, Roche, and Sysmex - who provide the Company with kits constituting
48% of the total value of raw materials in 2024 (46% in 2023).
Total raw material costs as a percentage of sales stood at 22.0% in 2024,
compared to 22.2% in 2023 and 20.4% in 2022.
Remittance of dividend regulations and repatriation of profit risk
The Group's ability to remit dividends abroad may be adversely affected by the
imposition of remittance restrictions. Specifically, under Egyptian law,
companies seeking to transfer dividends overseas are required to obtain As a foreign investor in Egypt, IDH currently does not face issues in the
necessary government clearance and are subject to higher taxation on payment repatriation of dividends. However, due to prevailing market volatility and as
of dividends. It is worth noting that following challenges in 2022 and 2023 a precautionary measure, the Company decided to suspend dividend distributions
related to the sourcing of foreign currency, the situation in Egypt has for 2022 and 2023. Meanwhile, the declaration of a dividend for the year ended
improved significantly despite limitations on non-essential transactions 31 December 2024 has been deferred until after the release of the Company's
remaining. half-year results. This will allow management and the Board to better assess
the Company's capital needs in light of potential expansion opportunities and
the prevailing market conditions.
Legal and regulatory risk to the business
The Group's business is subject to, and thus affected by, extensive, rigid, The Group's legal and the quality assurance teams work together to keep IDH
and constantly evolving laws and regulations, in addition to changing fully informed, and in compliance with, both legislative and regulatory
enforcement regimes in each of its operating geographies. Further, the Group's updates.
position as a major player in the Egyptian private clinical laboratory market
subjects IDH to antitrust and competition-related restrictions, as well as the
chance of investigation by the Egyptian Competition Authority.
On the antitrust front, the private laboratory segment (of which IDH is part)
accounts for only a small proportion of the total market, which consists of
small private labs, private chain labs, and large governmental and
quasi-governmental institutions.
Pricing pressure in a competitive, regulated environment
The Group may face pricing pressures from several third-party payers,
including national health insurance, syndicates, other governmental bodies,
which are potentially capable of adversely impacting Group revenue. Pricing This is an external risk for which few mitigants exist.
may also be restricted in cases by recommended or mandatory fees set by
government ministries and other authorities.
In the case of price competition escalation between market players, the Group
relies on its wide national footprint as a mitigant. More specifically, IDH is
The risk may be more apparent in cases of increased inflationary pressures, able to leverage its nationwide network to attract contract clients to the
particularly following the devaluation of the Egyptian Pound and its Group (65% of the Company's revenues in 2024 were generated through its
subsequent effects. contract segment), who prefer IDH's national reach and established position
over patchworks of local players.
IDH enjoys limited ability to influence changes to mandatory pricing policies
set forth by government agencies, as with those in Jordan, where basis tests
account for the majority of IDH's business in that nation are subject to price
controls. Instead, IDH's operations in Jordan are focused on driving volume
growth as a catalyst for expanding revenues.
IDH banks on its strong brand equity in its markets of operation to enjoy a
solid positioning. As such, IDH is a price maker, especially in Egypt where
the Group currently controls the largest network of branches amongst all
private sector players. Moreover, the Group faces no potential risk of
governmental price regulations in its home and largest market, Egypt, which
made up 83% of revenues in 2024.
The Group may also face pricing pressure from existing competitors and new
market entrants.
Cybersecurity risks
IDH controls a vast and growing database of confidential data for its patient The Company places top priority on its data security, regularly conducting
records; to this end, there is a cybersecurity risk for both data stress tests of its IT infrastructure to confirm the effectiveness of its
confidentiality and security. internal controls. Additionally, its cybersecurity controls and protocols are
regularly updated to address potential shortcomings and remain up-to-date and
in full adherence with data security regulations in its markets. In response
to a cybersecurity incident in 2023, IDH took immediate steps to assess and
contain the incident, launch an incident response plan, and engage specialist
support services. While the incident did not involve patient data nor directly
impact IDH's operations, all appropriate regulatory authorities were informed
of the incident, and the Company continues to conduct regular tests of its
systems to ensure their security, prioritising the security of its patients'
data. It is important to note that no cybersecurity incidents occurred during
2024.
Business continuity risks
Management concentration risk: IDH is dependent on a highly experienced IDH comprehends the importance of strengthening its human capital to support
management team boasting decades of experience in their respective fields. The its future growth plans. The Company is therefore committed to expanding its
loss of key members of IDH's team could materially affect the Company's senior management team, under the experienced leadership of its CEO, Dr. Hend
operations and business. El Sherbini, to add and maintain the talent needed for the expansion of its
footprint. In January 2024, the Group welcomed on board Sherif El Zeiny as
Board Member, Vice President and Group Chief Financial Officer. The Group has
constituted an Executive Committee, led by Dr. El Sherbini, and composed of
head of departments. The Executive Committee meets every second week.
The Group has in place a full disaster recovery plan, with procedures and
provisions for spares, redundant power systems, and the use of mobile data
systems as alternatives to landlines, among multiple other factors. To ensure
its readiness, IDH performs disaster recovery plan tests on a regular basis,
with updates as well as internal and external audits.
In Egypt and Jordan, to mitigate the impact of potential branch closures on
operations, the Group has been ramping up its house call services which in
Business interruption: Virtually all aspects of the Group's business use IT 2024 contributed to 16% of total revenue versus a pre-pandemic average of 9%.
systems extensively. This includes test and exam results reporting, billing, Moreover, the Group's important role in conducting key testing in both Egypt
customer service, logistics, and management of medical data. Similarly, and Jordan makes it unlikely that branches would be closed even if new
business interruption at one of the Group's larger facilities could result in restrictive measures were introduced.
significant material losses and reputational damage to IDH's business. This
could be a result of natural disasters, fire, riots, or extended power
failures. The Group, therefore, depends on the continued and uninterrupted
performance of its systems.
Climate-related risks
IDH's operations currently face low physical and transitional risks related to In 2022, the Company decided to begin reporting based on the Task Force on
climate change. Climate-Related Financial Disclosures (TCFD) programme to provide stakeholders
with a clear framework to access its climate-related risks and opportunities.
Despite this, overall risks and opportunities related to climate change are
considered immaterial, specifically in the short to medium term. IDH's TCFD
disclosures related to 2024 are available starting on page 82 of the Company's
2024 annual report.
- End -
INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH"
AND ITS SUBSIDIARIES
Consolidated Financial Statements
for the year ended 31 December 2024
Consolidated statement of financial position as at 31 December 2024
Notes 2024 2023
EGP'000 EGP'000
Assets
Non-current assets
Property, plant and equipment 11 1,489,647 1,414,725
Intangible assets and goodwill 12 1,806,067 1,710,183
Right of use assets 25 753,298 683,025
Total non-current assets 4,049,012 3,807,933
Current assets
Inventories 15 317,562 374,650
Trade and other receivables 16 1,010,605 727,235
Financial assets at fair value through profit and loss 14 36,158 25,157
Financial assets at amortized cost 18 527,832 161,098
Cash and cash equivalents 17 1,188,082 674,253
Total current assets 3,080,239 1,962,393
Total assets 7,129,251 5,770,326
Equity
Share capital 19 1,039,121 1,072,500
Share premium reserve 19 1,027,706 1,027,706
Capital reserves 19 (314,310) (314,310)
Capital Redemption Reserve 33,379 -
Legal reserve 19 51,641 51,641
Put option reserve 19 (532,499) (356,583)
Translation reserve 19 (407,595) (82,341)
Retained earnings 1,812,706 1,280,287
Equity attributable to the owners of the Company 2,710,149 2,678,900
Non-controlling interests 2 789,350 421,888
Total equity 3,499,499 3,100,788
Non-current liabilities
Provisions 21 23,288 17,758
Borrowings 24 40,479 67,465
Other financial obligations 25 970,890 891,350
Non-current put option liability 23 - 42,786
Deferred tax liabilities 9 431,355 374,729
Total non-current liabilities 1,466,012 1,394,088
Current liabilities
Trade and other payables 22 826,251 637,761
Other financial obligations 25 236,197 176,704
Current put option liability 23 532,499 313,796
Borrowings 24 224,528 43,680
Current tax liabilities 28 344,265 103,509
Total current liabilities 2,163,740 1,275,450
Total liabilities 3,629,752 2,669,538
Total equity and liabilities 7,129,251 5,770,326
The accompanying notes on pages 36-82 form an integral part of these
consolidated financial statements.
These consolidated financial statements were approved and authorised for issue
by the Board of Directors and signed on their behalf on 16 April 2025 by:
Dr. Hend El Sherbini Sherif El Zeiny
Chief Executive Officer Chief Financial Officer
Consolidated income statement for the year ended 31 December 2024
Notes 2024 2023
EGP'000 EGP'000
Revenue 6 5,719,742 4,122,506
Cost of sales 8.1 (3,538,189) (2,598,159)
Gross profit 2,181,553 1,524,347
Marketing and advertising expenses 8.2 (291,098) (211,623)
Administrative expenses 8.3 (672,466) (510,393)
Impairment loss on trade and other receivable 16 (48,312) (51,255)
Other income/(expenses) 8.4 44,671 (13,314)
Operating profit 1,214,348 737,762
Net fair value losses on financial assets at fair value through profit or loss 8.9 (25,996) -
Finance costs 8.7 (196,898) (160,983)
Finance income 8.7 448,141 160,577
Net finance income/(costs) 8.7 251,243 (406)
Profit before income tax 1,439,595 737,356
Income tax expense 9 (431,221) (268,993)
Profit for the year 1,008,374 468,363
Profit/(Loss) attributed to:
Owners of the Company 1,077,434 510,304
Non-controlling interests (69,060) (41,941)
1,008,374 468,363
Earnings per share 10
Basic and diluted 1.82 0.85
The accompanying notes on pages 36-82 form an integral part of these
consolidated financial statements.
Consolidated statement of comprehensive income for the year ended 31 December
2024
2024 2023
EGP'000 EGP'000
Net profit for the year 1,008,374 468,363
Other comprehensive income/(expense):
Items that may be reclassified to profit or loss:
Exchange difference on translation of foreign operations 82,447 (7,206)
Other comprehensive income/(expense) for the year, net of tax 82,447 (7,206)
Total comprehensive income for the year 1,090,821 461,157
Attributable to:
Owners of the Company 752,180 403,790
Non-controlling interests 338,641 57,367
1,090,821 461,157
The accompanying notes on pages 36-82 form an integral part of these
consolidated financial statements.
Consolidated statement of cash flows for the year ended 31 December 2024
Note 2024 2023
EGP'000 EGP'000
Cash flows from operating activities
Profit before tax 1,439,595 737,356
Adjustments for:
Depreciation of property, plant and equipment 11 300,049 259,455
Depreciation of right of use assets 25 173,655 134,033
Amortisation of intangible assets 12 9,094 7,750
Unrealised foreign exchange gains and losses 8.7 (303,466) (87,798)
Fair value losses on financial assets at FV through profit or loss 25,996 -
Finance income 8.7 (144,675) (72,779)
Finance Expense 8.7 196,898 160,983
Loss/(gain) on disposal of PPE 2,692 (734)
Impairment in trade and other receivables 16 48,312 51,255
ECl in cash 1,260 -
Impairment in goodwill - 11,265
Impairment in assets - 6,705
Equity settled financial assets at fair value 4,680 (7,093)
ROU Asset/Lease Termination (655) (512)
Change in Provisions 21 5,099 14,238
Change in Inventories 76,760 (104,909)
Change in Trade and other receivables (208,758) (198,078)
Change in Trade and other payables 93,884 (99,191)
Cash generated from operating activities before income tax payment 1,720,420 811,946
Taxes paid (151,818) (268,283)
Net cash generated from operating activities 1,568,602 543,663
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 9,120 2,366
Interest received 134,398 73,316
Payments for acquisition of property, plant and equipment (209,214) (323,439)
Payments for acquisition of intangible assets (15,383) (2,490)
Payments for the purchase of financial assets at amortised cost (550,870) (243,563)
Proceeds from the sale of financial assets at amortized cost 211,231 249,868
Payment for purchase of global depository receipts (short-term investment) 8.9 (308,606) -
Proceeds from sale of global depository receipts (short-term investments) 8.9 282,610 -
Net cash used in investing activities (446,714) (243,942)
Cash flows from financing activities
Proceeds from borrowings 27 184,941 71,630
Repayment of borrowings 27 (35,047) (76,911)
Payment of financial obligations 27 (42,209) (94,854)
Principal payment of lease liabilities 27 (143,359) (144,278)
Dividends paid (27,421) -
Payments for shares bought back (374,354) -
Interest paid 27 (170,805) (138,390)
Bank charge paid (26,324) (19,294)
Cash injection by owner of non-controlling interest 48,055 74,748
Acquire shares non-controlling interest (162,474) -
Paid cash to non-controlling interest - (3,112)
Net cash flows used in financing activities (748,997) (330,461)
Net increase / (decrease) in cash and cash equivalents 372,891 (30,740)
Cash and cash equivalents at the beginning of the year 674,253 648,512
Effect of exchange rate on cash 140,938 56,481
Cash and cash equivalents at the end of the year 17 1,188,082 674,253
Non-cash investing and financing activities disclosed in other notes are:
· acquisition of right-of-use assets - note 25
· Put option liability - note 23
The accompanying notes on pages 36-82 form an integral part of these
consolidated financial statements.
Consolidated statement of changes in equity for the year ended 31 December
2024
EGP'000 Share Capital Share premium reserve Capital reserves Legal reserve* Capital Redemption Reserve Put option reserve Translation reserve Retained earnings Total attributed to Non-Controlling interests Total Equity
the owners of the
Company
1,072,500 1,027,706 (314,310) 51,641 - (356,583) (82,341) 1,280,287 2,678,900 421,888 3,100,788
As at 1 January 2024
Profit / (loss) for the year - - - - - - - 1,077,434 1,077,434 (69,060) 1,008,374
Other comprehensive (expense)/ income for the year - - - - - - (325,254) - (325,254) 407,701 82,447
Total comprehensive income - - - - - - (325,254) 1,077,434 752,180 338,641 1,090,821
Transactions with owners in their capacity as owners
Dividends - - - - - - - - - (27,421) (27,421)
Buyback of shares - - - - - - - (374,354) )374,354( - )374,354(
Cancellation of treasury shares (33,379) - - - 33,379 - - - - - -
Movement in put option liability in the year - - - - - (338,390) - - (338,390) - (338,390)
Acquisition of non-controlling interests without change in control - - - - - 162,474 - (170,661) (8,187) 8,187 -
Cash injection by owner of non-controlling interest - - - - - - - - - 48,055 48,055
Total (33,379) - - - 33,379 (175,916) - (545,015) (720,931) 28,821 (692,110)
At 31 December 2024 1,039,121 1,027,706 (314,310) 51,641 33,379 (532,499) (407,595) 1,812,706 2,710,149 789,350 3,499,499
1,072,500 1,027,706 (314,310) 51,641 - (490,695) 24,173 783,081 2,154,096 292,885 2,446,981
As at 1 January 2023
Profit / (loss) for the year - - - - - - - 510,304 510,304 (41,941) 468,363
Other comprehensive (expense)/ income for the year - - - - - - (106,514) - (106,514) 99,308 (7,206)
Total comprehensive income - - - - - - (106,514) 510,304 403,790 57,367 461,157
Transactions with owners in their capacity as owners
-
Impact of hyperinflation - - - - - - - (13,098) (13,098) - (13,098)
Movement in put option liabilities for the year - - - - - 134,112 - - 134,112 - 134,112
Paid share from non-controlling interests - - - - - - - - - (3,112) (3,112)
Acquisition of non-controlling interests without change in control - - - - - - - - - 74,748 74,748
Total - - - - - 134,112 - (13,098) 121,014 71,636 192,650
At 31 December 2023 1,072,500 1,027,706 (314,310) 51,641 - (356,583) (82,341) 1,280,287 2,678,900 421,888 3,100,788
* Under Egyptian Law each subsidiary must set aside at least 5% of its annual
net profit into a legal reserve until such time that this represents 50% of
each subsidiary's issued capital. This reserve is not distributable to the
owners of the Company
(In the notes all amounts are shown in Egyptian Pounds "EGP'000" unless
otherwise stated)
1. Corporate information
The consolidated financial statements of Integrated Diagnostics Holdings plc
and its subsidiaries (collectively, "the Group") for the year ended 31
December 2024 were authorised for issue in accordance with a resolution of the
directors on 16 April 2025. Integrated Diagnostics Holdings plc "IDH" or "the
company" is a public company incorporated in Jersey. It has been established
according to the provisions of the Companies (Jersey) law 1991 under No.
117257. The registered office address of the Company is 12 Castle Street, St
Helier, Jersey, JE2 3RT. The Company is a listed entity, in London stock
exchange since 2015.
The principal activity of the Group is investments in all types of the
healthcare field of medical diagnostics (the key activities are pathology and
radiology related tests), either through acquisitions of related business in
different jurisdictions or through expanding the acquired investments IDH has.
The key jurisdictions that the Group operates are in Egypt, Jordan, Nigeria,
Sudan and Saudi Arabia.
The Group's financial year starts on 1 January and ends on 31 December each
year.
2. Group information
Information about subsidiaries
The consolidated financial statements of the Group include:
Principal Country of % Equity interest Non-Controlling interest
activities Incorporation
2024 2023 2024 2023
Al Borg Laboratory Company ("Al-Borg") Medical diagnostics service Egypt 99.3% 99.3% 0.7% 0.7%
Al Mokhtabar Company for Medical Labs ("Al Mokhtabar") Medical diagnostics service Egypt 99.9% 99.9% 0.1% 0.1%
Medical Genetic Center Medical diagnostics service Egypt 55.0% 55.0% 45.0% 45.0%
Al Makhbariyoun Al Arab Group Medical diagnostics service Jordan 60.0% 60.0% 40.0% 40.0%
Golden Care for Medical Services Holding company of SAMA Egypt 100.0% 100.0% 0.0% 0.0%
Integrated Medical Analysis Company (S.A.E)* Medical diagnostics service Egypt 100.0% 100.0% 0.0% 0.0%
SAMA Medical Laboratories Co. ("Ultralab medical laboratory ") Medical diagnostics service Sudan 80.0% 80.0% 20.0% 20.0%
AL-Mokhtabar Sudanese Egyptian Co. Medical diagnostics service Sudan 65.0% 65.0% 35.0% 35.0%
Integrated Diagnostics Holdings Limited Intermediary holding company Cayman Islands 100.0% 100.0% 0.0% 0.0%
Dynasty Group Holdings Limited Intermediary holding company England and Wales 51.0% 51.0% 49.0% 49.0%
Eagle Eye-Echo Scan Limited** Intermediary holding company Mauritius 77.57% 77.18% 22.43% 22.82%
Echo-Scan*** Medical diagnostics service Nigeria 100.0% 100.0% 0.0% 0.0%
WAYAK Pharma Medical services Egypt 99.99% 99.99% 0.01% 0.01%
Medical Health Development**** Medical services Saudi Arabia 100% 51% 0% 49%
Chronx Limited***** Intermediary holding company United Arab Emirates 80% - 20% -
*In the financial period of 23, Al Mokhtabar, a medical laboratory, acquired a
0.4% ownership share in Integrated Medical Analysis (S.A.E). In connection
with this acquisition, Al Mokhtabar made a payment of EGP 3,112K to
non-controlling interest. This transaction resulted in Al Mokhtabar becoming
the full owner of the stake by the end of the year 2023.
** The Group consolidates "Eagle Eye-Echo Scan Limited" a subsidiary based in
Mauritius, despite having 39.6% indirect ownership.
*** The Group consolidates "Echo scan" a subsidiary based in Nigeria, despite
having 39.6% indirect ownership.
For more details refer to note 4.1.
**** On March 8, 2023, the Group completed the establishment of Medical Health
Development, a limited liability company based in Saudi Arabia with a total
stake of 51% directly and indirectly through one of the Group's subsidiaries,
where Integrated Diagnostics Holdings (IDH) owns 30% and Al Makhbariyoun Al
Arab group ("Biolab")-Jordan a subsidiary owns 21%., The Group consolidate
"Medical Health Development" a subsidiary based in Saudi Arabia
despite having 42.51% indirect ownership.
The stake previously held by Izhoor Holding Medical Company LLC ("Izhoor"),
was purchased for a total consideration of SAR 12.0 million (USD 3.2 million).
The transaction involved a one-time cash payment from IDH to Izhoor financed
by taking out borrowing. IDH's holdings in Medical Health Development
following the transaction stand at 79.0% (versus its previous 30.0% stake),
with the remaining 21.0% held by the Group's Jordanian subsidiary, Al
Makhbariyoun Al Arab group ("Biolab")-Jordan.
***** On October 23, 2024, the Group completed the establishment of Chronx
Limited, a limited company based in United Arab Emirates with a total stake of
80% directly and 20% held by Dr.Khaled Ezzeldin Ismail.
Non-Controlling interest
Non-Controlling Interest is measured at the proportionate share basis.
Proportion of equity interest held by non-controlling interests:
Country of incorporation 2024 2023
Medical Genetic Center Egypt 45.0% 45.0%
Al Makhbariyoun Al Arab Group Jordan 40.0% 40.0%
SAMA Medical Laboratories Co. " Ultra lab medical laboratory " Sudan 20.0% 20.0%
AL-Mokhtabar Sudanese Egyptian Co. Sudan 35.0% 35.0%
Al Borg Laboratory Company Egypt 0.7% 0.7%
Dynasty Group Holdings Limited England and Wales 49% 49%
Eagle Eye-Echo Scan Limited Mauritius 22.43% 22.82%
Medical Health Development Saudi Arabia - 49%
Chronx Limited United Arab Emirates 20% -
The summarised financial information of subsidiaries that have material
non-controlling interests is provided below. This information is based on
amounts before inter-company eliminations.
Al Makhbariyoun Al Arab Group (Hashemite Kingdom of Jordan) Dynasty Group Total
EGP'000
EGP'000
EGP'000
Summarised statement of income for 2024:
Revenue 901,693 82,073 983,766
Profit/(loss) 43,284 (28,681) 14,603
Other comprehensive income 236,565 507,452 744,017
Total comprehensive income 279,849 478,771 758,620
Profit/(loss) allocated to non-controlling interest 17,314 (17,451) (137)
Other comprehensive income allocated to non-controlling interest 95,631 280,775 376,406
Summarised statement of financial position as at 31 December 2024:
Non-current assets 686,881 40,962 727,843
Current assets 444,959 43,039 487,998
Non-current liabilities (275,070) (3,911) (278,981)
Current liabilities (289,230) (23,365) (312,595)
Net assets 567,540 56,725 624,265
Net assets attributable to non-controlling interest 227,016 33,718 260,734
Al Makhbariyoun Al Arab Group (Hashemite Kingdom of Jordan) Dynasty Group Total
EGP'000
EGP'000
EGP'000
Summarised statement of income for 2023:
Revenue 604,025 96,394 700,419
Profit/(loss) 32,811 (54,740) (21,929)
Other comprehensive income 65,142 131,234 196,376
Total comprehensive income 97,953 76,494 174,447
Profit/(loss)allocated to non-controlling interest 13,124 (12,514) 610
Other comprehensive income allocated to non-controlling interest 26,333 71,847 98,180
Summarised statement of financial position as at 31 December 2023:
Non-current assets 494,904 51,913 546,817
Current assets 254,412 (6,623) 247,789
Non-current liabilities (202,510) (3,189) (205,699)
Current liabilities (187,663) (24,911) (212,574)
Net assets 359,143 17,190 376,333
Net assets attributable to non-controlling interest 143,657 4,579 148,236
3. Basis of preparation
Statement of compliance
Integrated Diagnostics Holdings plc "IDH" or "the company" has been
established according to the provisions of the Companies (Jersey) law 1991
under No. 117257. The Company is listed entity, in London stock exchange and
was delisted from the Egyptian stock exchange in September 2024. The
consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards as adopted by the
European Union and the Companies (Jersey) Law 1991.
Basis of measurement
The consolidated financial statements have been prepared on a historical cost
basis, except where adopted IFRS mandates that fair value accounting is
required which is related to financial assets and liabilities measured at fair
value.
New standards and interpretations Adopted
The Group has applied the following amendments for the first time for their
annual reporting period commencing 1 January 2024:
· Supplier finance arrangements - Amendments IFRS 7/IAS 7
· Lease liability in a sale leaseback - Amendments to IFRS 16
· Classification of liabilities as current or non-current -
Amendments to IAS 1
The amendments listed above did not have any impact on current and prior years
and not expected to affect future years.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and
interpretations have been published that are not mandatory for 31 December
2024 reporting period and have not been early adopted by the company. These
standards, amendments or interpretations are not expected to have a material
impact on the Group in the current or future reporting periods and on
foreseeable future transactions.
Going concern
These consolidated financial statements have been prepared on the going
concern basis. On 31 December 2024, the Group had cash and cash equivalent
balance plus treasury bills / deposits minus borrowing amounting to KEGP
1,450,907. The Directors have considered a number of downside scenarios,
including the most severe but plausible scenario, for a period of 16 months
from the signing of the financial statements. We have conducted multiple
sensitivity analyses to assess the impact of inflationary pressures and
potential currency evaluation for the next 16 months. We did not consider the
Biolab put option since it is not plausible that the option will be exercised
refer to (note 23). We assume dividends are expected to be paid during the
period for which going concern is being assessed or those in respect of merger
and acquisition 'M&A' activity. Under all of these scenarios, there
remains significant headroom from a liquidity and covenant perspective.
Therefore, the Directors believe the Group has the ability to meet its
liabilities as they fall due throughout the going concern period and the use
of the going concern basis in preparing the financial statements is
appropriate.
3.1. Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Group and its subsidiaries as at 31 December 2024. Control is achieved when
the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its
power over the investee.
i. Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group
controls an entity where the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date that control
ceases.
Inter-company transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the transferred
asset. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown
separately in the consolidated statement of income statement of comprehensive
income, statement of changes in equity and statement of financial position
respectively.
ii. Changes in ownership interests
The Group treats transactions with non-controlling interests that do not
result in a loss of control as transactions with equity owners of the Group. A
change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their
relative interests in the subsidiary. Any difference between the amount of the
adjustment to non-controlling interests and any consideration paid or received
is recognised in a separate reserve within equity attributable to owners of
the Group.
When the Group ceases to consolidate or equity account for an investment
because of a loss of control, joint control or significant influence, any
retained interest in the entity is remeasured to its fair value, with the
change in carrying amount recognised in profit or loss. This fair value
becomes the initial carrying amount for the purposes of subsequently
accounting for the retained interest as an associate, joint venture or
financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the
Group had directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in other comprehensive income are
reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but
joint control or significant influence is retained, only a proportionate share
of the amounts previously recognised in other comprehensive income are
reclassified to profit or loss where appropriate.
3.2. Material accounting policy information and other explanatory
information
The accounting policies set out below have been consistently applied to all
the years presented in these consolidated financial statements.
a) Business combinations
The acquisition method of accounting is used to account for all business
combinations, regardless of whether equity instruments or other assets are
acquired. The consideration transferred for the acquisition of a subsidiary
comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of the acquired business
• equity interests issued by the Group
• fair value of any asset or liability resulting from a contingent
consideration arrangement, and
• fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are, with limited exceptions, measured
initially at their fair values at the acquisition date. The Group recognises
any non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the
non-controlling interest's proportionate share of the acquired entity's net
identifiable assets.
Acquisition-related costs are expensed as incurred.
The excess of the:
• consideration transferred,
• amount of any non-controlling interest in the acquired entity, and
• acquisition-date fair value of any previous equity interest in the
acquired entity over the fair value of the net identifiable assets acquired is
recorded as goodwill. If those amounts are less than the fair value of the net
identifiable assets of the business acquired, the difference is recognised
directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts
payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the entity's incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently
remeasured to fair value, with changes in fair value recognised in profit or
loss.
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date. Any gains or
losses arising from such remeasurement are recognised in profit or loss.
b) Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not
subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets
(cash-generating units). Non-financial assets other than goodwill that
suffered an
impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.
c) Fair value measurement
The Group measures financial instruments such as non-derivative financial
instruments and contingent consideration assumed in a business combination at
fair value at each balance sheet date.
When measuring the fair value of an asset or a liability, the Group uses
observable market data as far as possible. Fair value is categorised into
different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:
Ø Level 1 - Quoted (unadjusted) market prices in active markets for identical
assets or liabilities.
Ø Level 2 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly
observable.
Ø Level 3 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements at
fair value on a recurring basis, the Group determines whether transfers have
occurred between levels in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value measurement as
a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Group has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks
of the asset or liability and the level of the fair value hierarchy, as
explained above.
The fair value less any estimated credit adjustments for financial assets and
liabilities with maturity dates less than one year is assumed to approximate
their carrying value. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future contracted cash
flows at the current market interest rate that is available to the Group for
similar transactions.
d) Revenue recognition:
Revenue represents the value of medical diagnostic services rendered in the
year and is stated net of discounts. The Group has two types of customers:
Walk-in patients who make payments upon completion of the service and patients
served under contracts who are invoiced and subject to standard credit terms.
For patients under contracts, rates are agreed in advance on a per-test,
client-by-client basis based on the pricelists agreed within these contracts.
The following steps are considered for all types of patients:
1. Identification of the Contracts: written contracts are agreed
between IDH and customers. The contracts stipulate the duration, price per
test and credit period.
2. Determining performance obligations are the diagnostics tests
within the pathology and radiology services. The performance obligation is
achieved when the customer receives their test results, and so are recognised
at point in time.
3. Transaction price: Services provided by the Group are distinct in
the contract, as the contract stipulates the series of tests' names/types to
be conducted along with its distinct prices.
4. Allocation of price to performance obligations: Stand-alone selling
price per test is stipulated in the contract. In case of discounts, it is
allocated proportionally to all of tests prices in the contract.
5. Revenue is being recorded after the satisfaction of the above
mentioned conditions.
The Group considers whether it is the principal or the agent in each of its
contractual arrangements. In line with IFRS 15 "Revenue from contracts" in
assessing the appropriate treatment of each contract, factors that are
considered include which party is controlling the service being performed for
the customer and bears the inventory risk. Where the Group is largely
controlling the service and bearing the inventory risk it is deemed to be the
principal and the full consideration received from the customer is recognised
as revenue, with any amounts paid to third parties treated as cost of sales.
Customer loyalty program:
The Group operates a loyalty program where customers accumulate points for
purchases made which entitle them to a discount on future purchases. The
points are valid for 12 months from the time they are awarded. The value of
points to be provided is based on the expectation of what level will be
redeemed in the future before their expiration date. This amount is netted
against revenue earned and included as a contract liability and only
recognised as revenue when the points are then redeemed or have expired.
e) Income Taxes
Tax on the profit or loss for the year comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised directly in equity, in which case it is recognised in equity.
i. Current tax
Current tax is the expected tax payable or receivable on the taxable income or
loss for the year, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous
years.
ii. Deferred tax
Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax is recognised on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated
financial statements.
However, deferred tax liabilities are not recognised if they arise from the
initial recognition of goodwill; deferred income tax is not accounted for if
it arises from initial recognition of an asset or liability in a transaction
other than a business combination and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences,
the carry forward of unused tax credits and any unused tax losses. Deferred
tax assets are recognised to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences,
and the carry forward of unused tax credits and unused tax losses can be
utilised. Deferred tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the reporting date and are expected to
apply when the related deferred income tax asset is realized, or the deferred
income tax liability is settled.
f) Foreign currency translation
i) Functional and presentation currency
Each of the Group's entities is using the currency of the primary economic
environment in which the entity operates ('the functional currency'). The
Group's consolidated financial statements are presented in Egyptian Pounds,
being the reporting currency of the main Egyptian trading subsidiaries within
the Group and the primary economic environment in which the Group operates.
ii) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions, and from
the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates, are generally recognised in profit or
loss. They are deferred in equity if they relate to qualifying cash flow
hedges and qualifying net investment hedges or are attributable to part of the
net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in
the statement of profit or loss, within finance costs. All other foreign
exchange gains and losses are presented in the statement of profit or loss on
a net basis within other gains/(losses).
Non-monetary items that are measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was
determined. Translation differences on assets and liabilities carried at fair
value are reported as part of the fair value gain or loss. For example,
translation differences on non-monetary assets and liabilities such as
equities held at fair value through profit or loss are recognised in profit or
loss as part of the fair value gain or loss, and translation differences on
non-monetary assets such as equities classified as at fair value through other
comprehensive income are recognised in other comprehensive income.
g) Hyperinflationary Economies
The financial statements of "SAMA Medical Laboratories Co. and AL-Mokhtabar
Sudanese Egyptian Co." report their financial statements in the currency of
a hyperinflationary economy. In accordance with IAS 29 financial reporting in
Hyperinflationary Economies, the financial statements of those subsidiaries
were restated by applying the consumer price index at closing rates in
December 2024 Nil (2023 December Nil) before they were included in the
consolidated financial statements.
h) Property, plant and equipment
All property and equipment are stated at historical cost or fair value at
acquisition, less accumulated depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the
consolidated statement of income during the financial period in which they are
incurred. Land is not depreciated.
Depreciation expense is calculated using the straight-line method to allocate
the cost or to their residual value over their estimated useful lives, as
follows:
Buildings
50 years
Medical, electric and information systems equipment
4-10 years
Leasehold
improvements
4-5 years
Fixtures, fittings &
vehicles
4-16 years
The assets useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period.
An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated
recoverable amount. Gains and losses on disposals are determined by comparing
the proceeds with the carrying amount and are recognised within 'Other
(expenses)/income - net' in the consolidated statement of income.
i) Intangible assets
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is
their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses.
Internally generated intangibles, excluding capitalised development costs, are
not capitalised and the related expenditure is reflected in profit or loss in
the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or
indefinite.
Intangible assets with finite lives are amortised over the useful economic
life and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period. Changes in the expected useful life or
the expected pattern of consumption of future economic benefits embodied in
the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives is recognised in
the statement of income in the expense category that is consistent with the
function of the intangible assets. The Group amortises intangible assets with
finite lives using the straight-line method over the following periods:
- IT development and software 4-5 years
Intangible assets with indefinite useful lives are not amortised, but are
tested for impairment annually, either individually or at the cash-generating
unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the
change in useful life from indefinite to finite is made on a prospective
basis.
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess
of the consideration transferred over interest in net fair value of the net
identifiable assets, liabilities and contingent liabilities of the acquiree
and the fair value of the non-controlling interest in the acquire.
Goodwill is stated at cost less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in a business combination is
allocated to each of the cash-generating units (CGUs), or groups of CGUs, that
is expected to benefit from the synergies of the combination. Each unit or
group of units to which the goodwill is allocated represents the lowest level
within the entity at which the goodwill is monitored for internal management
purposes. The impairment assessment is done on an annual basis.
Brand
Brand names acquired in a business combination are recognised at fair value at
the acquisition date and have an indefinite useful life.
The Group brand names are considered to have indefinite useful life as the
Egyptian brands have been established in the market for more than 40 years and
the health care industry is very stable and continues to grow.
The brands are not expected to become obsolete and can expand into different
countries and adjacent businesses, in addition, there is a sufficient ongoing
marketing efforts to support the brands and this level of marketing effort is
economically reasonable and maintainable for the foreseeable future.
Impairment of intangible assets
The Group tests annually whether goodwill and other intangibles with
indefinite lives have suffered any impairment. Impairment exists when the
carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its
value in use.
The recoverable amounts of cash generating units have been determined based on
value in use or realisable value. The value
in use calculation is based on a discounted cash flow ("DCF") model.
Realisable value is based on the market value of the CGU or their underlying
assets.
The cash flows are derived from the budget for the next five years and do not
include restructuring activities that the Group is not yet committed to or
significant future investments that will enhance the asset's performance of
the CGU being tested.
We test for impairment at the smallest grouping of CGUs at which a material
impairment could arise or at the lowest level at which goodwill is monitored.
References to testing being performed at a CGU level throughout the rest of
the financial statements is referring to the grouping of CGUs at which at the
test is performed. The grouping of CGUs is shown in note 13 where the
assumptions for the impairment assessment are disclosed.
I) Financial instruments - initial recognition and subsequent measurement
A financial instrument is any contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.
i. Financial assets
Classification
The Group reclassifies debt investments when and only when its business model
for managing those assets changes.
The Group classifies its investments in debt Instruments in the following
measurement categories:
• those to be measured subsequently at fair value (either through OCI or
through income statement), and
• those to be measured at amortised cost.
The classification depends on the entity's business model for managing the
financial assets and the contractual terms of the cash flows.
For investments in equity instrument measured at fair value, gains and losses
will either be recorded in income statement or OCI.
For investments in equity instruments that are not held for trading, this will
depend on whether the Group has made an irrevocable election at the time of
initial recognition to account for the equity investment at fair value through
other comprehensive income (FVOCI).
Recognition and derecognition
According to the standard, purchases and sales of financial assets are
recognised on trade date, being the date on which the Group commits to
purchase or sell the asset. Financial assets are derecognised when the rights
to receive cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all the risks and
rewards of ownership.
Measurement
At initial recognition, the Group measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value, through profit or
loss (FVPL) transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets
carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety
when determining whether their cash flows are solely payment of principal and
interest.
Debt instruments
Subsequent measurement of debt instruments depends on the Group's business
model for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which the Group classifies its
debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash
flows, where those cash flows represent solely payments of principal and
interest, are measured at amortised cost. Interest income from these financial
assets is included in finance income using the effective interest rate method.
Any gain or loss arising on derecognition is recognised directly in profit or
loss and presented in other gains/(losses) together with foreign exchange
gains and losses. Impairment losses are presented as a separate line item in
the consolidated income statement.
• FVOCI: Assets that are held for collection of contractual cash flows and
for selling the financial assets, where the assets' cash flows represent
solely payments of principal and interest, are measured at FVOCI. Movements in
the carrying amount are taken through OCI, except for the recognition of
impairment losses, interest income and foreign exchange gains and losses,
which are recognised in profit or loss. When the financial asset is
derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to profit or loss and recognised in other
gains/(losses). Interest income from these financial assets is included in
finance income using the effective interest rate method. Foreign exchange
gains and losses are presented in other gains/(losses), and impairment
expenses are presented as separate line item in the consolidated income
statement.
• FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are
measured at FVPL. A gain or loss on a debt investment that is subsequently
measured at FVPL is recognised in profit or loss and presented net within
other gains/(losses) in the period in which it arises. Management has assessed
the underlying nature of the investments and designated upon investment that
this should be treated as an investment held at fair value with movements
going through the income statement on the basis of the size of the investment
and the reasons for making the investment.
Equity instruments
The Group subsequently measures all equity investments at fair value. Where
the Group's management has elected to present fair value gains and losses on
equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to profit or loss following the derecognition of the
investment. Dividends from such investments continue to be recognised in
profit or loss as other income when the Group's right to receive payments is
established.
Changes in the fair value of financial assets at FVPL are recognised in other
gains/(losses) in the statement of income as applicable. Impairment losses
(and reversal of impairment losses) on equity investments measured at FVOCI
are not reported separately from other changes in fair value.
Impairment
The Group assesses on a forward-looking basis the expected credit losses
associated with its debt instruments carried at amortised cost and FVOCI. The
impairment methodology applied depends on whether there has been a significant
increase in credit risk. For trade receivables, the Group applies the
simplified approach permitted by IFRS 9, which requires expected lifetime
losses to be recognised from initial recognition of the receivables.
Further disclosures relating to impairment of financial assets are also
provided in the following notes:
Ø Disclosures for significant estimates and
assumptions Note 4.2
Ø Financial
assets
Note 5
Ø Trade
receivables
Note 16
The Group uses an allowance matrix to measure the ECLs of trade receivables
from individual customers, which comprise a very large number of small
balances.
Loss rates are calculated using a 'roll rate' method based on the probability
of a receivable progressing through successive stages of delinquency to
write-off. Roll rates are calculated separately for exposures in different
segments based on credit risk characteristics, age of customer relationship.
Loss rates are based on actual credit loss experience over the past three
years. These rates are multiplied by scalar factors to reflect differences
between economic conditions during the period over which the historical data
has been collected, current conditions and the Group's view of economic
conditions over the expected lives of the receivables.
ii. Financial liabilities
Initial recognition and measurement
Financial liabilities are classified as measured at amortised cost or FVTPL. A
financial liability is classified at FVTPL if it is classified as held for
trading, financial liabilities at FVTPL are measured at fair value and net
gains and losses including any interest expenses are recognised in profit or
loss.
Put options included in put option liabilities are carried at the present
value of the redemption amount in accordance with IAS 32 in regard to the
guidance on put option on an entity's own equity shares. The Group has written
put options over the equity of its (Bio Lab, Echo Scan and Medical Health
Development) subsidiaries. The option on exercise is initially recognised at
the present value of the redemption amount with a corresponding charge
directly to equity. The charge to equity is recognised separately within the
put option reserve and this is in line with paragraph 23 of IFRS 10.
All of the Group's financial liabilities are classified as financial
liabilities carried at amortised cost using the effective interest method. The
Group does not use derivative financial instruments or hedge account for any
transactions. Unless otherwise indicated, the carrying amounts of the Group's
financial liabilities are a reasonable approximation of their fair values.
The Group's financial liabilities include trade and other payables, put option
liabilities, borrowings, and other financial obligations.
Derecognition
A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the statement of income.
iii. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is
reported in the consolidated statement of financial position if there is a
currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, to realise the assets and settle the
liabilities simultaneously.
j) Impairment of non-financial assets
Further disclosures relating to impairment of non-financial assets are also
provided in the following notes:
Ø Disclosures for significant assumptions and
estimates Note 4.2
Ø Goodwill and intangible
assets
Note 13
The Group assesses at each reporting date, whether there is an indication that
an asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Group estimates the asset's recoverable
amount. An asset's recoverable amount is the higher of an asset's or CGU's
fair value less costs of disposal and its value in use. The recoverable amount
is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of
assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded companies or other
available fair value indicators.
The Group bases its impairment calculation on detailed budgets and forecast
calculations, which are prepared separately for each of the Group's CGUs to
which the individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. A long-term growth rate
is calculated and applied to project future cash flows after the fifth year.
Impairment losses of continuing operations are recognised in the statement of
profit or loss in expense categories consistent with the function of the
impaired asset.
For assets excluding goodwill and indefinite lived intangible assets, an
assessment is made at each reporting date to determine whether there is an
indication that previously recognised impairment losses no longer exist or
have decreased.
If such indication exists, the Group estimates the asset's or CGU's
recoverable amount. A previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to determine the asset's
recoverable amount since the last impairment loss was recognised. The reversal
is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in the consolidated
income statement.
Goodwill is tested for impairment annually and when circumstances indicate
that the carrying value may be impaired. Management takes into consideration
any changes that occur and have impacts between the impairment report date of
31 October and date of year end of 31 December.
Impairment is determined for goodwill by assessing the recoverable amount of
each CGU (or group of CGUs) to which the goodwill relates. When the
recoverable amount of the CGU is less than its carrying amount, an impairment
loss is recognised. Impairment losses relating to goodwill cannot be reversed
in future periods.
Intangible assets with indefinite useful lives are tested for impairment
annually as at 31 October at the CGU level, as appropriate, and when
circumstances indicate that the carrying value may be impaired.
Assets that are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognized for the amount by which the
asset's carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset's fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are largely independent cash inflows (CGU).
Prior impairments of non-financial assets (other than goodwill) are reviewed
for possible reversal at each reporting date.
k) Inventories
Raw materials are stated at the lower of cost and net realisable value. Cost
comprises direct materials, direct labour and an appropriate proportion of
variable and fixed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. Costs are assigned to individual items of
inventory on the basis of weighted average costs. Costs of purchased inventory
are determined after deducting rebates and discounts. Net realisable value is
the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the
sale.
l) Cash and short-term deposits
Cash and short-term deposits in the statement of financial position comprise
cash at banks and on hand and short-term deposits with original maturities of
three months or less, which are subject to an insignificant risk of changes in
value.
For the purpose of the consolidated statement of cash flows, cash and cash
equivalents consist of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the
Group's cash management.
m) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs
incurred. Borrowings are subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using
the effective interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw-down occurs. To the extent there is
no evidence that it is probable that some or all of the facility will be drawn
down, the fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
Borrowings are removed from the statement of financial position when the
obligation specified in the contract is discharged, cancelled or expired. The
difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12
months after the reporting period.
n) Borrowing costs
General and specific borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset are capitalised
during the period of time that is required to complete and prepare the asset
for its intended use or sale. Qualifying assets are assets that necessarily
take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings,
pending their expenditure on qualifying assets, is deducted from the borrowing
costs eligible for capitalisation. Other borrowing costs are expensed in the
period in which they are incurred.
o) Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation. When the Group expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of
profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
Provisions are measured at the present value of the expenditures expected to
be required to settle the obligation using a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific
to the obligation. The increase in the provision due to passage of time is
recognised as a finance cost.
p) Pensions and other post-employment benefits
A defined contribution plan is a pension plan under which the Group pays fixed
contributions into a separate entity. The Group has no legal or constructive
obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the
current and prior periods. Obligations for contributions to defined
contribution pension plans are recognized as an expense in the income
statement in the periods during which services are rendered by employees.
q) Segmentation
The Group has five operating segments based on geographical locations and
these have been disclosed in note 6. There are also two operating segments
based on service provided but this is considered as one reportable segment due
to having similar characteristics.
r) Leases as lessee (IFRS 16)
At the inception of a contract, the Group assesses whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in
exchange for consideration.
As a lessee
At commencement or on modification of a contract that contains a lease
component, along with one or more other lease or non-lease components, the
Group accounts for each lease component separately from the non-lease
components. However, for the non-leases element of the underlying asset, the
Group has elected not to separate non-lease components and account for the
lease and non-lease components as a single lease component. The Group
allocates the consideration in the contract to each lease component on the
basis of its relative stand-alone price and the aggregate stand-alone price of
the non-lease components.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located,
less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the end of the lease term, unless the
lease transfers ownership of the underlying asset to the Group by the end of
the lease term or the cost of the right-of-use asset reflects that the Group
will exercise a purchase option. In that case the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined
on the same basis as those of property and equipment. In addition, the
right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
incremental borrowing rate for the IFRS 16 calculations. This is set based
upon the interest rate attached to the Group's financing and adjusted, where
appropriate, for specific factors such as asset or company risk premiums.
Lease payments included in the measurement of the lease liability comprise the
following:
- fixed payments, including in-substance fixed payments.
- variable lease payments that depend on an index or a rate, initially
measured using the index or rate as at the commencement date.
- amounts expected to be payable under a residual value guarantee,
- the exercise price under a purchase option that the Group is
reasonably certain to exercise,
- lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option, and
- penalties for early termination of a lease unless the Group is
reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in future lease payments
arising from a change in an index or rate, there is a change in the Group's
estimate of the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised
in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset, to the extent that
the right-of-use asset is reduced to nil, with any further adjustment required
from the remeasurement being recorded in profit or loss.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease
liabilities for lease of low-value assets and short-term leases. The Group
recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
4. Key judgments and critical accounting estimates
4.1. Judgement
Useful economic lives of Brands
Management have assessed that the brands within the Group which have a value
have an indefinite life. This is based on their strong history and existence
in the market over a large number of years, in addition to the fact that these
brands continue to grow and become more profitable. As the brands have been
assigned an indefinite life then they are not amortised and assessed for
impairment on an annual basis.
Control over subsidiaries
The Group makes acquisitions that often see a non-controlling interest
retained by the seller. The assessment of if the Group has control of these
acquisitions in order to consolidate is a critical judgement in these
financial statements.
The Group consolidate the subsidiaries assessed for the following reasons:
1) The Group holds the majority of the share capital
2) The Group has the majority on the board of subsidiaries
3) The Group has full control of the operations and is involved in all
decisions.
The Group is able to consolidate its subsidiary, Echoscan in Nigeria, despite
owning only 39.6% indirect ownership. This is due to several reasons:
1) The Group exercises control over all intermediate entities that connect the
parent company to Echoscan.
2) The Group has a technical service agreement in place, which grants them the
authority to direct and oversee the operations of the subsidiaries in Nigeria.
Despite not having majority ownership, the Group's control over the
intermediate entities and technical service agreement allows them to exercise
control in their financial statements.
4.2. Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below.
The Group based its assumptions and estimates on parameters available when the
consolidated financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Group.
Such changes are reflected in the assumptions when they occur.
Impairment of intangible assets
The Group tests annually whether goodwill and other intangibles with
indefinite lives have suffered any impairment. Impairment exists when the
carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its
value in use.
The recoverable amounts of cash generating units have been determined based on
value in use. The value
in use calculation is based on a discounted cash flow ("DCF") model.
The cash flows are derived from the budget for the next five years and do not
include restructuring activities that the Group is not yet committed to or
significant future investments that will enhance the asset's performance of
the CGU being tested. The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes. For more detailed assumptions
refer to (note 13).
Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk
of default and expected loss rates. The Group uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on
the Group's history and existing market conditions, as well as forward-looking
estimates at the end of each reporting period. Details of the key assumptions
and inputs used are disclosed in note 16.
5. Financial assets and financial liabilities
2024 2023
EGP'000
EGP'000
Cash and cash equivalents (Note 17) 1,188,082 674,253
Term deposits and treasury bills (Note 18) 527,832 161,098
Trade and other receivables (Note 16) 930,308 685,050
Total financial assets 2,646,222 1,520,401
2024 2023
EGP'000
EGP'000
Trade and other payables (Note 22) 705,304 556,563
Put option liability (Note 23) 532,499 356,582
Financial obligations (Note 25) 1,207,087 1,068,054
Loans and borrowings (Note 27) 282,566 125,439
Total other financial liabilities 2,727,456 2,106,638
Total financial instruments* (81,234) (586,237)
* The financial instruments exclude prepaid expenses, deferred revenue, and
tax (current tax, payroll tax, withholding tax,…etc).
The fair values of financial assets and liabilities are considered to be
equivalent to their book value.
The fair values measurements for all the financial assets and liabilities have
been categorized as Level 3, if its fair value can't be determined by using
readily observable measures.
Echo-Scan put option (note 23) has been categorized as Level 3 as the fair
value of the option is based on un-observable inputs using the best
information available in the current circumstances, including the company's
own projection and taking into account all the market assumptions that are
reasonably available.
Financial instruments risk management objectives and policies
The Group's principal financial liabilities are trade and other payables, put
option liabilities, borrowings and other financial liabilities. The Group's
principal financial assets include trade and other receivables, financial
assets at amortised cost, financial asset at fair value and cash and cash
equivalents that derive directly from its operations.
The Group is exposed to market risk, credit risk and liquidity risk. The
Group's overall risk management program focuses on the unpredictability of
markets and seeks to minimize potential adverse effects on the Group's
financial performance. The Group's senior management oversees the management
of these risks. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.
The board provides written principles for overall risk management, as well as
written policies covering specific areas, such as foreign exchange risk,
interest rate risk, and credit risk, use of derivative financial instruments
and non-derivative financial instruments, and investment of excess liquidity.
- Market risk
Market risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk
and other price risk, such as equity price risk and commodity risk. Financial
instruments affected by market risk include borrowings and deposits.
The sensitivity analysis in the following sections relate to the position as
at 31 December 2024 and 2023. The sensitivity analysis has been prepared on
the basis that the amount of net debt, the ratio of fixed to floating interest
rates of the debt and the proportion of financial instruments in foreign
currencies are all constant.
The analysis excludes the impact of movements in market variables on
provisions, and the non-financial assets and liabilities of foreign
operations. The following assumptions have been made in calculating the
sensitivity analysis:
Ø The sensitivity of the relevant consolidated income statement item is the
effect of the assumed changes in respective market risks. This is based on the
financial assets and financial liabilities held at 31 December 2024 and 31
December 2023
- Interest rate risk
The Group is trying to minimize its interest rate exposure, especially in
Egypt region, which has seen several interest rate rises over the year.
Minimising interest rate exposure has been achieved partially by entering into
fixed-rate instruments.
Exposure to interest rate risk
The interest rate profile of the Group's interest-bearing financial
instruments as reported to the management of the Group is as follows:
2024 2023
EGP'000 EGP'000
Fixed-rate instruments
Financial obligations (note 25) 1,207,087 1,068,054
Loans and borrowings (note 24) 197,542 16,694
Treasury bills (note 17 & 18) 74,048 133,315
Term deposits (note 17 & 18) 1,125,548 289,475
Variable-rate instruments
Loans and borrowings (note 24) 67,465 94,451
Cash flow sensitivity analysis for variable-rate instruments
A reasonable possible change of 100 basis points in interest rates at the
reporting date would have increased (decreased) profit or loss by the amounts
EGP 675k (2023: EGP 945k). This analysis assumes that all other variables,
remain constant.
- Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of
an exposure will fluctuate because of changes in foreign exchange rates.
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to the US
Dollar, Sudanese Pound, the Jordanian Dinar, Nigerian Naira and Saudi Riyal.
Foreign exchange risk arises from the Group's operating activities (when
revenue or expense is denominated in a foreign currency), recognized assets
and liabilities and net investments in foreign operations. However, management
aims to minimize open positions in foreign currencies to the extent that is
necessary to conduct its activities.
Management has set up a policy to require group companies to manage their
foreign exchange risk against their functional currency. Foreign exchange risk
arises when future commercial transactions or recognised assets or liabilities
are denominated in a currency that is not the entity's functional currency.
At year end, major financial assets / (liabilities) denominated in foreign
currencies were as follows:
31-Dec-24
Assets Liabilities Net exposure
Cash and cash equivalents Other Total Put option Finance Trade Total
assets
assets
lease
payables
liability
US 4,358 - 4,358 (116,012) (65,365) (181,377) (177,019)
JOD - - - (512,577) - - (512,577) (512,577)
SAR - - - - - - - -
31-Dec-23
Assets Liabilities Net exposure
Cash and cash equivalents Other Total Put option Finance Trade Total
assets
assets
lease
payables
liability
US 22,698 - 22,698 - (49,290) (28,767) (78,057) (55,359)
JOD - - - (301,383) - - (301,383) (301,383)
SAR - - - (42,786) - - (42,786) (42,786)
The following is the exchange rates applied:
Average rate for the year ended
31-Dec-24 31-Dec-23
US Dollars 45.53 30.76
Euros 49.17 33.31
GBP 58.27 38.35
JOD 64.11 43.12
SAR 12.15 8.20
SDG 0.06 0.05
NGN 0.03 0.05
Spot rate for the year ended
31-Dec-24 31-Dec-23
US Dollars 50.79 30.84
Euros 52.68 34.04
GBP 63.78 39.26
JOD 71.51 43.42
SAR 13.52 8.22
SDG 0.03 0.05
NGN 0.03 0.03
At 31 December 2024, if the Egyptian Pound had weakened/strengthened by 40%
against the US Dollar with all other variables held constant, total equity for
the year would have increased/decreased by EGP (70.81m) (2023: EGP (22.14m)),
mainly as a result of foreign exchange gains/losses and translation reserve on
the translation of US dollar-denominated financial assets and liabilities as
at the financial position of 31 December 2024.
At 31 December 2024, if the Egyptian Pound had weakened / strengthened by 10%
against the Jordanian Dinar with all other variables held constant, total
equity for the year would have increased/decreased by EGP (51m) (2023: EGP
(30m)), mainly as a result of foreign exchange gains/losses and translation
reserve on translation of JOD -denominated financial assets and liabilities as
at the financial position of 31 December 2024.
At 31 December 2024, if the Egyptian Pound had weakened / strengthened by 10%
against the Saudi Riyal with all other variables held constant, total equity
for the year would have increased/decreased by EGP Nil, mainly as a result of
foreign exchange gains/losses and translation reserve on translation of SAR
-denominated financial assets and liabilities as at the financial position of
31 December 2024.
- Price risk
The Group's exposure to equity securities price risk arises from investments
held by the Group and classified in the balance sheet as at fair value through
profit or loss (FVPL) (note 14).
- Credit risk
Credit risk is the risk a financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations and it arises principally from under the Groups receivables. The
Group is exposed to credit risk from its operating activities (primarily trade
receivables) and financial assets at amortised cost, such as term deposits and
treasury bills.
Credit risk is managed on a group basis, except for credit risk relating to
accounts receivable balances. Each local entity is responsible for managing
and analysing the credit risk for each of their new clients before standard
payment and delivery terms and conditions are offered. Credit risk arises from
cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposures to customers,
including outstanding receivables and committed transactions.
The Group's cash balance and financial assets at amortized cost are held in
financial institutions, with 60% rated Caa1 for credit risk in Egypt, 10%
rated at least Ba3 for credit risk in Jordan, 26% rated A3 for Bank Mashreq
Dubai, and 4% rated at least Caa1 for credit risk in Nigeria.
Trade receivables
The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the
default risk associated with the industry and country or region in which
customers operate. Details of concentration of revenue are included in the
operating segment note (see Note 6).
The risk management committee has established a credit policy under which each
new customer is analysed individually for creditworthiness before the Group's
standard payment and delivery terms and conditions are offered and credit
limit is set for each customer. The Group's review includes external ratings,
if available, financial statements, industry information and in some cases
bank references. Receivable limits are established for each customer and
reviewed quarterly. Any receivable balance exceeding the set limit requires
approval from the risk management committee. Outstanding customer receivables
are regularly monitored and the average general credit terms given to contract
customers are 45 - 60 days.
An impairment analysis is performed at each reporting date on an individual
basis for major clients. In addition, a large number of minor receivables are
grouped into homogenous groups and assessed for impairment collectively. The
calculation is based on actual incurred historical data and expected future
credit losses. The Group does not hold collateral as security. That maximum
exposure to credit risk is disclosed in note 16.
Cash and cash equivalents
Credit risk from balances with banks and financial institutions is managed by
the Group's treasury department in accordance with the Group's policy.
Investments of surplus funds are made only with approved counterparties and
within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Group's Board of Directors on an annual basis and may be
updated throughout the year subject to approval of the Group's management. The
limits are set to minimise the concentration of risks and therefore mitigate
financial loss through a counterparty's potential failure to make payments.
The maximum exposure to credit risk at the reporting date is the carrying
value of cash and cash equivalents disclosed in Note 17.
- Liquidity risk
The Group's objective is to maintain a balance between continuity of funding
and flexibility through the use of finance leases and loans.
The table below summarises the maturity profile of the Group's financial
liabilities based on contractual undiscounted cashflows:
31 December 2024 1 year or less 1 to 5 years more than 5 years Total
Financial obligations 372,329 1,104,329 230,185 1,706,843
Put option liabilities 532,499 - - 532,499
Borrowings 248,197 47,484 - 295,681
Trade and other payables 705,304 - - 705,304
1,858,329 1,151,813 230,185 3,240,327
31 December 2023 1 year or less 1 to 5 years more than 5 years Total
Financial obligations 291,342 1,054,902 166,965 1,513,209
Put option liabilities 313,796 42,786 - 356,582
Borrowings 60,199 83,211 - 143,410
Trade and other payables 556,563 - - 556,563
1,221,900 1,180,899 166,965 2,569,764
Cash flow forecasting is performed in the operating entities of the Group and
aggregated by group finance. The Group finance monitors rolling forecasts of
the Group's liquidity requirements to ensure it has sufficient cash to meet
operational needs. Such forecasting takes into consideration the Group's
compliance with internal financial position ratio targets and, if applicable
external regulatory or legal requirements - for example, currency
restrictions.
The Group's management retain cash balances in order to allow repayment of
obligations in due dates, without taking into account any unusual effects
which it cannot be predicted such as natural disasters. All suppliers and
creditors will be repaid over a period not less 30 days from the date of the
invoice or the date of the commitment.
6. Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker who is responsible for allocating resources and assessing
performance of the operating segments has been identified as the steering
committee that makes strategic decisions.
The preparation of the Group's consolidated financial statements in conformity
with adopted IFRSs requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities.
The Group has five operating segments based on geographical location, with the
Group's Chief Operating Decision Maker (CODM) reviewing the internal
management reports and KPIs of each geography. The CODM does not separately
review assets and liabilities of the Group by reportable segment.
The Group operates in five geographic areas, Egypt, Sudan, Jordan, Nigeria and
Saudi Arabia. As a provider of medical diagnostic services, IDH's operations
in Sudan are not subject to sanctions. The revenue split, adjusted EBITDA
split, (being the key profit measure reviewed by CODM), impairment loss on
trade receivables and net profit and loss between the five regions is set out
below.
Revenue split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-24 4,718,163 2,624 898,515 82,073 18,367 5,719,742
31-Dec-23 3,410,720 11,367 604,025 96,394 - 4,122,506
Adjusted EBITDA split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-24 1,617,263 (10) 252,636 (26,410) (112,591) 1,730,888
31-Dec-23 1,058,254 1,107 157,306 (24,623) - 1,192,044
Impairment loss on trade receivables split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-24 44,504 - 2,829 979 - 48,312
31-Dec-23 45,268 5,013 - 974 - 51,255
Net profit / (loss) split by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-24 1,117,360 (422) 66,878 (29,377) (146,065) 1,008,374
31-Dec-23 530,207 (1,735) 33,813 (72,536) (21,386) 468,363
The operating segment profit measure reported to the CODM is adjusted EBITDA,
as follows:
2024 2023
EGP'000 EGP'000
Profit from operations 1,214,348 737,762
Property, plant and equipment and right of use depreciation 473,704 393,488
Amortization of Intangible assets 9,094 7,750
EBITDA 1,697,146 1,139,000
Nonrecurring items* 33,742 53,044
Adjusted EBITDA 1,730,888 1,192,044
* Nonrecurring items
IDH recorded one-off expenses during the year, namely:
2024 2023
EGP'000 EGP'000
Delisting fees 33,742 -
The Egyptian government for vocational training - 11,865
Pre-operating expenses in Saudi Arabia - 18,196
Impairment expenses due to the ongoing conflict in Sudan - 5,013
Impairment expenses in goodwill and assets for operations in Nigeria - 17,970
33,742 53,044
The non-current assets reported to CODM is in accordance with IFRS are as
follows:
Non-current assets by geographic location
For the year ended Egypt region Sudan region Jordan region Nigeria region Saudi Arabia Total
31-Dec-24 3,037,039 2,374 883,309 35,808 90,482 4,049,012
31-Dec-23 3,091,485 3,848 609,699 47,639 55,262 3,807,933
7. Capital management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue in order to provide returns for shareholders and benefits
for other stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the
amount of dividends paid to shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt.
The repatriation of a declared dividend from Egyptian group entities are
subject to regulation by Egyptian authorities. The outcome of an Ordinary
General Meeting of Shareholders declaring a dividend is first certified by the
General Authority for Investment and Free Zones (GAFI).
Approval is subsequently transmitted to Misr for Central Clearing, Depository
and Registry (MCDR) to distribute dividends to all shareholders, regardless of
their domicile, following notification of shareholders via publication in one
national newspapers.
The Group monitors capital on the basis of the net debt to equity ratio. This
ratio is calculated as net debt divided by total equity. Net debt is
calculated as (short-term and long-term financial obligation plus short-term
and long term borrowings) less cash and cash equivalents and financial assets
at amortised cost.
2024 2023
EGP'000 EGP'000
Financial obligations (note 25) 1,207,087 1,068,054
Borrowings (note 27) 282,566 125,439
Less: Financial assets at amortised cost (note 18) (527,832) (161,098)
Less: Cash and cash equivalents (Note 17) (1,188,082) (674,253)
Net (funds)/debt (226,261) 358,142
Total Equity 3,499,499 3,100,788
Net (funds)/debt as % of equity (6.5) % 11.6%
No changes were made in the objectives, Policies, or processes for managing
capital during the years ended 31 December 2024 and 31 December 2023.
8. Expense
Included in consolidated income statement are the following:
8.1 Cost of sales
2024 2023
EGP'000 EGP'000
Raw material 1,204,351 875,296
Cost of specialized analysis at other laboratories 52,527 38,765
Wages and salaries 1,062,684 773,565
Property, plant and equipment, right of use depreciation and Amortisation 441,541 362,230
Other expenses 777,086 548,303
Total 3,538,189 2,598,159
8.2 Marketing and advertising expenses
2024 2023
EGP'000 EGP'000
Advertisement expenses 150,764 98,034
Wages and salaries 81,435 65,580
Property, plant and equipment depreciation 723 718
Other expenses 58,176 47,291
Total 291,098 211,623
8.3 Administrative expenses
2024 2023
EGP'000 EGP'000
Wages and salaries 307,875 216,037
Property, plant and equipment and right of use depreciation 40,534 38,290
Other expenses 324,057 256,066
Total 672,466 510,393
8.4 Other income/(expenses)
2024 2023
Other expenses EGP'000 EGP'000
ECL in Cash (1,260) -
Impairment in assets - (6,705)
Impairment in goodwill - (11,265)
Provision for end of service (2,206) (331)
Provision for legal claims (5,667) (3,496)
Provision for Egyptian Government Training Fund for employees (995) (11,865)
Total (10,128) (33,662)
2024 2023
EGP'000 EGP'000
Other income 54,799 20,348
Total 54,799 20,348
Other income/(expenses) 44,671 (13,314)
8.5 Expenses by nature
2024 2023
EGP'000 EGP'000
Raw material 1,204,351 875,296
Wages and Salaries 1,451,994 1,055,182
Property, plant and equipment, right of use depreciation and amortisation 482,798 401,238
Advertisement expenses 150,764 98,034
Cost of specialized analysis at other laboratories 52,527 38,765
Transportation and shipping 130,613 100,850
Cleaning expenses 93,487 78,400
Call Center 29,511 27,874
Hospital Contracts 111,172 69,342
Consulting Fees 230,084 170,319
Utilities 68,326 59,915
License Expenses 106,176 46,583
Other expenses 389,950 298,377
Total 4,501,753 3,320,175
8.6 Auditors' remuneration
The Group paid or accrued the following amounts to its auditor for the
financial year ended 31 December 2024 and 2023 and its associates in respect
of the audit of the financial statements and for other services provided to
the Group.
2024 2023
EGP'000 EGP'000
Fees payable to the Company's auditor for the audit of the Group's annual 34,875 49,217
financial statements
The audit of the Company's subsidiaries pursuant to legislation 37,233 15,779
Assurance services* - 308
72,108 65,304
*Assurance services relate to review of Corporate Governance report in Egypt
that is required to be performed by the auditor.
8.7 Net finance income/(costs)
2024 2023
EGP'000 EGP'000
Interest expense (170,574) (141,688)
Bank Charges (26,324) (19,295)
Total finance costs (196,898) (160,983)
Interest income 144,675 72,779
Foreign Exchange gain 303,466 87,798
Total finance income 448,141 160,577
Net finance income/(cost) 251,243 (406)
8.8 Employee numbers and costs
The average number of persons employed by the Group (including directors)
during the year and the aggregate payroll costs of these persons, analysed by
category, were as follows:
2024 2023
Medical Administration and market Total Medical Administration and market Total
Number of employees 5,354 955 6,309 5,435 1,257 6,692
2024 2023
EGP'000
EGP'000
Medical Administration and market Total Medical Administration and market Total
Wages and salaries 965,757 360,160 1,325,917 710,515 253,729 964,244
Social security costs 79,760 22,877 102,637 49,786 24,386 74,172
Contributions to defined contribution plan 17,167 6,273 23,440 13,264 3,502 16,766
Total 1,062,684 389,310 1,451,994 773,565 281,617 1,055,182
Details of key management remuneration are provided in note 26 and details of
amounts paid to directors are included in the Remuneration Committee Report.
8.9 Net fair value losses on financial assets at fair value through profit
or loss
During 2024, Integrated Diagnostics Limited company invested in Global
Depositary Receipts (GDR) tradable in stock exchanges, where the companies
purchased 4 million shares, EGP 309 million from the Egyptian Stock Exchange
and sold them during the same period on the London Stock Exchange at USD 5.9
million excluding the transaction cost. During 2023 the Group didn't invest in
Global Depositary Receipt (GDR) tradable in stock exchanges.
2024 2023
Number of shares'000
EGP'000 EGP'000
listed equity securities Shares bought 3,975 (308,606) -
Shares sale 3,975 282,610 -
(25,996) -
9. Income tax
a) Amounts recognised in profit or loss.
2024 2023
EGP'000 EGP'000
Current year tax (376,356) (216,425)
DT on undistributed reserves (48,667) (50,004)
DT on reversal of temporary differences (6,198) (2,564)
Total Deferred tax (54,865) (52,568)
Tax expense recognized in profit or loss (431,221) (268,993)
b) Reconciliation of effective tax rate
The company is considered to be a UK tax resident, and subject to UK taxation.
Dividend income into the company is exempt from taxation when received from a
wholly controlled subsidiary, and costs incurred by the company are considered
unlikely to be recoverable against future UK taxable profits and therefore
form part of our unrecognised deferred tax assets. Our judgement on tax
residency has been made based on where we hold board meetings, our listing on
the London Stock Exchange and interactions with investors, and where our
company secretarial function is physically based. Our external company
secretarial function manages a number of activities of our parent and its
board. Board meetings are chaired in London and are now largely taking place
physically in London with the expectation of one physical board meeting a year
in Cairo.
2024 2023
EGP'000 EGP'000
Profit before tax 1,439,595 737,356
Profit before tax multiplied by rate of corporation tax in Egypt of 22.5% 323,909 165,905
(2023: 22.5%)
Effect of tax rate in UK of 25% (2023: UK 23.5%) (1,691) (2,335)
Effect of tax rates in Jordan, Sudan, and Nigeria of 21%, 30% and 30% (67,994) (4,188)
respectively (2023: 21%, 30% and 30%); and Saudi Arabia with a rate of 20%
(2023: 20%)
Tax effect of:
Deferred tax not recognised 59,306 37,684
Deferred tax arising on undistributed dividend 48,667 50,004
Non-deductible expenses for tax purposes - employee profit share 26,781 14,075
Non-deductible expenses for tax purposes - other 42,243 7,848
Tax expense recognised in profit or loss 431,221 268,993
Deferred tax
Deferred tax relates to the following:
2024 2023
Assets Liabilities Assets Liabilities
EGP'000 EGP'000 EGP'000 EGP'000
Property, plant and equipment (38,224) (39,552)
Intangible assets (120,077) (111,033)
Undistributed reserves from group subsidiaries (275,542) (226,875)
Tax Losses 2,488 2,731
Total deferred tax assets/(liability) 2,488 (433,843) 2,731 (377,460)
(431,355) (374,729)
All deferred tax amounts are expected to be recovered or settled more than
twelve months after the reporting period.
The difference between net deferred tax balances recorded on the income
statement is as follows:
2024 Net Balance 1 January Deferred tax recognized in profit or loss Effect of translation to presentation currency WHT tax Net Balance 31 December
paid
Property, plant and equipment (39,552) 3,089 (1,761) - (38,224)
Intangible assets (111,033) (9,044) - - (120,077)
Undistributed dividend from group subsidiaries (226,875) (48,667) - - (275,542)
Tax losses 2,731 (243) - - 2,488
(374,729) (54,865) (1,761) - (431,355)
2023 Net balance at 1 January Deferred tax recognised in profit or loss Effect of translation to presentation currency WHT tax paid Net balance 31 December
Property, plant and equipment (35,804) (3,319) (429) - (39,552)
Intangible assets (109,118) (1,915) - - (111,033)
Undistributed dividend from group subsidiaries (176,871) (50,004) - - (226,875)
Tax losses 61 2,670 - - 2,731
(321,732) (52,568) (429) - (374,729)
All movements in the deferred tax asset/liability in the year have been
recognised in the profit or loss account.
Deferred tax liabilities and assets have been calculated based on the enacted
tax rate at 31 December 2024 for the country the liabilities and assets has
arisen. The enacted tax rate in Egypt is 22.5% (2023: 22.5%), Jordan 21%
(2023: 21%), Sudan 30% (2023: 30%) and Nigeria 30% (2023: 30%).
* Undistributed reserves from group subsidiaries
The Group's dividend policy is to distribute any excess cash after taking into
consideration all business cash requirements and potential acquisition
considerations. The expectation is to distribute profits held within
subsidiaries of the Group in the near foreseeable future. During 2015 the
Egyptian Government imposed a tax on dividends at a rate of 5% of dividends
distributed from Egyptian entities. On September 30, 2020, the Egyptian
government issued a law to increase the tax rate to 10%. As a result, a
deferred tax liability has been recorded for the future tax expected to be
incurred from undistributed reserves held within the Group which will be taxed
under the new legislation imposed and were as follows:
2024 2023
EGP'000 EGP'000
Al Mokhtabar Company for Medical Labs 100,361 72,642
Alborg Laboratory Company 69,979 42,514
Integrated Medical Analysis Company 65,983 86,917
Al Makhbariyoun Al Arab Company 39,218 24,802
275,541 226,875
Unrecognized deferred tax assets
The following items make up unrecognised deferred tax assets. The local tax
law does not permit deductions for provisions against income tax until the
provision becomes realised. No deferred tax asset has been recognised on tax
losses for both Echo-Scan Nigeria and Wayak Egypt due to the uncertainty of
the available future taxable profit, which the Group can use the benefits
therefrom.
2024 2024 2023 2023
Gross Amount Tax Effect Gross Amount (restated) Tax Effect (restated)
EGP'000 EGP'000 EGP'000 EGP'000
Impairment of trade receivables (Note 16) 197,914 44,531 183,070 41,191
Impairment of other receivables (Note 16) 10,559 2,376 8,509 1,915
Provision for legal claims (Note 21) 9,759 2,196 5,561 1,251
Tax losses* 1,419,590 358,081 837,236 217,487
1,637,822 407,184 1,034,376 261,844
Unrecognized deferred tax asset 407,184 261,844
There is no expiry date for the Unrecognized deferred tax assets.
* The company has carried forward tax losses on which no deferred tax asset is
recognised as follows:
2024 2024 2023 2023
Gross Amount Tax Effect Gross Amount (restated) Tax Effect (restated)
Company Country EGP'000 EGP'000 EGP'000 EGP'000
Integrated Diagnostics Holdings plc Jersey 942,357 235,590 533,821 133,455
Dynasty Group Holdings Limited England and Wales 10,425 2,606 11,445 2,175
Eagle Eye-Echo Scan Limited Mauritius - - (278) (42)
WAYAK Pharma Egypt 19,908 4,479 24,767 5,573
Medical Genetic Center Egypt 17,325 3,898 15,264 3,435
Golden care Egypt 8,254 1,857 8,470 1,906
Medical health care Saudi Arabia 167,451 33,490 21,386 4,277
Echoscan Nigeria 253,870 76,161 222,361 66,708
1,419,590 358,081 837,236 217,487
10. Earnings per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to
ordinary equity holders of the parent by the weighted average number of
ordinary shares outstanding during the year. There are no dilutive effects
from ordinary share and no adjustment required to weighted-average numbers of
ordinary shares.
The following table reflects the income and share data used in the basic and
diluted EPS computation:
2024 2023
Profit attributable to ordinary equity holders of the parent for basic 1,077,434 510,304
earnings EGP'000
Weighted average number of ordinary shares for basic and dilutive EPS'000 593,622 600,000
Basic and dilutive earnings per share EGP 1.82 0.85
Earnings per diluted share are calculated by adjusting the weighted average
number of shares by the effects resulting from all the ordinary potential
shares that causes this dilution.
The Company has no potentially dilutive shares as of the 31 December 2024 and
31 December 2023, therefore; the earnings per diluted share are equivalent to
basic earnings per share.
11. Property, plant and equipment
Land & Buildings Medical, & electric equipment Leasehold improvements Fixtures, fittings & vehicles Building & Leasehold improvements in construction Payment on account Total
EGP'000 EGP'000 EGP'000 EGP'000 EGP'000 EGP'000 EGP'000
Cost
At 1 January 2023 426,961 1,111,867 507,442 133,195 28,589 10,614 2,218,668
Additions 31,772 174,589 99,977 18,841 28,091 268 353,538
Hyper inflation - (13,098) - - - - (13,098)
Disposals - (4,981) (506) (2,139) - - (7,626)
Exchange differences 2,136 (13,483) 19,660 5,271 (70) - 13,514
Transfers - - 18,383 - (18,383) - -
At 31 December 2023 460,869 1,254,894 644,956 155,168 38,227 10,882 2,564,996
Additions 3,284 125,227 57,012 14,684 9,007 - 209,214
Hyper inflation - - - - - - -
Disposals - (10,365) (3,063) (2,468) - (3,747) (19,643)
Exchange differences 28,784 144,968 129,583 47,852 5,371 - 356,558
Transfers - - 30,972 - (30,972) - -
At 31 December 2024 492,937 1,514,724 859,460 215,236 21,633 7,135 3,111,125
Accumulated Depreciation and impairment
At 1 January 2023 61,578 513,869 261,705 55,254 - - 892,406
Depreciation charge for the year 7,169 152,583 83,522 16,181 - - 259,455
Disposals - (3,890) (443) (1,661) - - (5,994)
Exchange differences 564 (8,393) 5,558 (30) - - (2,301)
Impairment - 1,480 3,466 1,759 - - 6,705
At 31 December 2023 69,311 655,649 353,808 71,503 - - 1,150,271
Depreciation charge for the year 8,561 161,722 108,912 20,854 - - 300,049
Disposals - (6,030) (544) (1,257) - - (7,831)
Exchange differences 2,999 88,985 60,291 26,714 - - 178,989
At 31 December 2024 80,871 900,326 522,467 117,814 - - 1,621,478
Net book value
At 31-12-2024 412,066 614,398 336,993 97,422 21,633 7,135 1,489,647
At 31-12-2023 391,558 599,245 291,148 83,665 38,227 10,882 1,414,725
12. Intangible assets and goodwill
Goodwill Brand Name Software Total
EGP'000 EGP'000 EGP'000 EGP'000
Cost
At 1 January 2023 1,291,823 395,551 92,836 1,780,210
Additions - - 2,490 2,490
Effect of movements in exchange rates 13,144 7,910 4,032 25,086
At 31 December 2023 1,304,967 403,461 99,358 1,807,786
Additions - - 15,383 15,383
Effect of movements in exchange rates 58,310 25,648 13,969 97,927
At 31 December 2024 1,363,277 429,109 128,710 1,921,096
Amortisation and impairment
At 1 January 2023 6,373 381 69,820 76,574
Impairment 11,265 - - 11,265
Amortisation - - 7,750 7,750
Effect of movements in exchange rates 80 11 1,923 2,014
At 31 December 2023 17,718 392 79,493 97,603
Amortisation - - 9,094 9,094
Effect of movements in exchange rates (476) (25) 8,833 8,332
At 31 December 2024 17,242 367 97,420 115,029
Net book value
At 31 December 2024 1,346,035 428,742 31,290 1,806,067
At 31 December 2023 1,287,249 403,069 19,865 1,710,183
The Group has fully impaired on the goodwill associated with the Medical
Genetics Center company and Echo Scan CGU in 2023.
13. Goodwill and intangible assets with indefinite lives (note
3.2-i)
Goodwill acquired through business combinations and intangible assets with
indefinite lives are allocated to the Group's CGUs as follows:
2024 2023
EGP'000 EGP'000
Al Makhbariyoun Al Arab Group ("Biolab")
Goodwill 149,658 90,872
Brand name 65,357 39,684
215,015 130,556
Alborg Laboratory Company ("Al-Borg")
Goodwill 497,275 497,275
Brand name 142,066 142,066
639,341 639,341
Al Mokhtabar Company for Medical Labs ("Al-Mokhtabar")
Goodwill 699,102 699,102
Brand name 221,319 221,319
920,421 920,421
Balance at 31 December 1,774,777 1,690,318
Assumptions used in value in use calculations and sensitivity to changes in
assumptions.
IDH worked with Alpha Capital, management's expert, to prepare an impairment
assessment of the Group's CGUs. The assessment was carried out based on
business plans provided by IDH.
These plans have been prepared based on criteria set out below:
2024
Bio Lab Al-Mokhtabar Al-Borg
Average annual patient growth rate from 2025 -2029 4% 5% 1%
Average annual price per test growth rate from 2025 -2029 1% 9% 8%
Annual revenue growth rate from 2025 -2029 5% 12% 10%
Average gross margin from 2025 -2029 39% 42% 35%
Terminal value growth rate from 1 January 2029 3% 5% 5%
Discount rate 14% 24% 24%
2023
Bio Lab Al-Mokhtabar Al-Borg
Average annual patient growth rate from 2024 -2028 5% 8% 5%
Average annual price per test growth rate from 2024 -2028 5% 11% 11%
Annual revenue growth rate from 2024 -2028 10% 16% 17%
Average gross margin from 2024 -2028 41% 44% 37%
Terminal value growth rate from 1 January 2028 3% 5% 5%
Discount rate 17% 25% 25%
Management have compared the recoverable amount of CGUs to the carrying value
of CGUs. The recoverable amount is the higher of value in use and fair value
less costs of disposal. In the exercise performed and the assumptions noted
above the value in use was noted to be higher than the fair value less costs
of disposal.
During 2024, management has conducted a business plan projection with the
support of a management expert (Alpha Capital), with the assumptions above
used to calculate the net present value of future cashflows to determine
recoverable amount. The projected cash flows from 2025- 2029 have been based
on detailed forecasts prepared by management for each CGU and a terminal value
thereafter. Management have used experience and historical trends achieved to
determine the key growth rate and margin assumptions set out above. The
terminal value growth rate applied is not considered to exceed the average
growth rate for the industry and geographic locations of the CGUs.
As a sensitivity analysis, Management considered a change in the discount
rates of 2% increase to reflect additional risk that could reasonably be
foreseen in the marketplaces in which the Group operates. This did not result
in an impairment under any of the CGUs.
The Group performed a distinct sensitivity analysis for the December 31, 2024,
balances related to the Goodwill recorded for Biolab due to the challenges
faced by the business given the Jordanian market situation. The analysis is
demonstrated as follows:
Year 2024
Scenario Enterprise Value EGP'000 CGU carrying Value Headroom EGP'000
EGP'000
Impact on headroom of reducing Revenues growth rate by 1% across all years 1,011,023 965,272 45,751
As a sensitivity analysis, Management considered a change in the discount
rates of 2% increase to reflect additional risk that could reasonably be
foreseen in the marketplaces in which the Group operates. This did not result
in an impairment under any of the CGUs.
Management has also considered a change in the terminal growth rate by 1%
decrease to reflect additional risk. This did not result in an impairment
under any of the CGUs that had a recoverable amount based on value in use.
This recoverable amount is then compared to the carrying value of the asset as
recorded in the books and records of IDH plc. The WACC has been used
considering the risks of each CGU. These risks include country risk, currency
risk as well as the beta factor relating to the CGU and how it performs
relative to the market.
The headroom between carrying value and recoverable amount is as follows:
Company Recoverable amount CGU carrying value Headroom
EGP'000
EGP'000
EGP'000
Almokhtabar 4,066,743 1,686,395 2,380,348
Alborg 2,250,662 1,501,630 749,032
Al Makhbariyoun Al Arab 1,216,827 965,272 251,555
Echo-scan, and our other businesses are loss making but carry no goodwill or
intangible assets, and thus where there are indicators of impairment risk this
would relate to the specific recoverability of their net assets, which is
largely Property Plant and Equipment in nature. Management have assessed these
and consider either the values in question to not be significant, or that the
carrying values are supportable based on the realisable value of the asset
base.
14. Financial asset at fair value through profit and loss
2024 2023
EGP'000 EGP'000
Current equity investments 36,158 25,157
Balance at 31 December 36,158 25,157
* On August 17, 2017, Al Makhbariyoun Al Arab (seller) has signed IT
purchase Agreement with JSC Mega Lab (Buyer) to transfer and install the
Laboratory Information Management System (LIMS) for a purchase price amounted
to USD 400,000, which will be in the form of 10% equity stake in JSC Mega Lab.
In case the valuation of the project is less or more than USD 4,000,000, the
seller stake will be adjusted accordingly, in a way that the seller equity
stake shall not fall below 5% of JSC Mega Lab.
- Ownership percentage in JSC Mega Lab at the transaction date on
April 8, 2019, and as of December 31, 2024, was 8.25%.
- On April 8, 2019, Al Mokhabariyoun Al Arab (Biolab) has signed a
Shareholder Agreement with JSC Mega Lab and JSC Georgia Healthcare Group
(CHG), whereas, BioLab Shall have a put option, exercisable within 12 months
immediately after the expiration of five (5) year period from the signing
date, which allows BioLab stake to be bought out by CHG at a price of the
equity value of BioLab Shares/total stake (being USD 400,000) plus 15% annual
IRR (including preceding 5 Financial years). After the expiration of above 12
months from the date of the put option period expiration, which allows CHG to
purchase Biolab's all shares at a price of equity value of Biolab's stake
(having value of USD 400,000) plus higher of 20% annual IRR or 6X EV/EBITDA
(of the financial year immediately preceding the call option exercise date).
In case the Management Agreement or the Purchase Agreement and/or the SLA is
terminated/cancelled within 6 months period from the date of such
termination/cancellation, CHG shall have a call option, which allows the CHG
to purchase Biolab's all Shares at a price of the equity value of BioLab's
stake in JSC Mega Lab (having value of USD 400,000) plus 20% annual IRR. If
JCI accreditation is not obtained, immediately after the expiration of the
additional 12 months period of the CHG shall have a call option (the
Accreditation Call option), exercisable within 6 months period, which allows
CHG to purchase BioLab's all Shares at a price of the equity value of BioLab's
stake in JSC Mega Lab (having value of USD 400,000) plus 20% annual IRR.
Due to the near expiration of the put option on 8 April 2025, on 31 December
2024, the management decided to adopt the fair value of the investment based
on the valuation report provided by an independent valuer and ceased the
adaptation of the previous valuation technique that was based on the higher of
the discounted exercise price of the put option than the calculated value of
the investment based on the discounted cash flows valuation technique due to
the management explicit intent and decision not to exercise the put option on
the exercising date.
15. Inventories
2024 2023
EGP'000 EGP'000
Chemicals and operating supplies 317,562 374,650
317,562 374,650
During 2024, EGP 1,204,351k (2023: EGP 875,296k) was recognised as an expense
for inventories, this was recognised in cost of sales. The major balance of
the raw material is represented in the Kits, slow-moving items of those Kits
are immaterial. It is noted that days inventory outstanding (based on the
average of opening and closing inventory) stands as 105 days at 31 Dec 2024.
16. Trade and other receivables
2024 2023
EGP'000 EGP'000
Trade receivables - net 804,081 569,738
Prepayments 80,297 42,185
Due from related parties note (26) 5,543 5,037
Other receivables 108,652 108,521
Accrued revenue 12,032 1,754
1,010,605 727,235
As at 31 December 2024, the expected credit loss related to trade and other
receivables was EGP 208,476k (2023: EGP 191,580k). Below show the movements in
the provision for impairment of trade and other receivables:
2024 2023
EGP'000 EGP'000
At 1 January 191,580 145,586
Charge for the year 48,312 51,255
Utilised (41,567) -
Exchange differences 10,151 (5,261)
At 31 December 208,476 191,580
The Group allocates each exposure to a credit risk grade based on data that is
determined to be predictive of the risk of loss (historical customer's
collection, Customers' contracts conditions) and applying experienced credit
judgement. Credit risk grades are defined using qualitative and quantitative
factors that are indicative of the risk of default.
Expected credit loss assessment is based on the following:
1. The customer list was divided into 9 sectors,
2. Each sector was divided according to customers aging,
3. Each sector was studied according to the historical events of each
sector. According to the study conducted, the expected default rate was
derived from each of the aforementioned period,
4. General economic conditions.
The results of the quarterly assessment will increase/decrease the percentage
allocated to each period. Balances overdue by at least one year are fully
provided for. On a quarterly basis, IDH revises its forward-looking estimates
and the general economic conditions to assess the expected credit loss.
Impairment of trade and notes receivables
The requirement for impairment of trade receivables is made through monitoring
the debts aging and reviewing customer's credit position and their ability to
make payment as they fall due. An impairment is recorded against receivables
for the irrecoverable amount estimated by management. At the year end, the
provision for impairment of trade receivables was EGP 197,913k (31 December
2023: EGP 183,070k). This is lower than the amount of EGP 208,476k (31
December 2023: EGP 191,580k) as that amount also includes provision on other
receivables.
A reasonable possible change of 100 basis points in the expected credit loss
at the reporting date would have increased (decreased) profit or loss by the
amount of EGP 10,020k. This analysis assumes that all other variables remain
constant.
The following table provides information about the exposure to expected credit
loss (ECL) for trade receivables from individual customers for the nine
segments at:
Weighted average Gross carrying Loss
loss rate
amount
allowance
31-Dec-24 EGP'000 EGP'000 EGP'000
Current (not past due) 3.70% 326,272 (12,079)
1-30 days past due 4.59% 148,696 (6,822)
31-60 days past due 5.18% 135,133 (6,999)
61-90 days past due 8.89% 88,708 (7,885)
91-120 days past due 15.84% 48,706 (7,714)
121-150 days past due 15.77% 29,520 (4,654)
More than 150 days past due 67.46% 224,959 (151,760)
Gross carrying Loss
amount
allowance
Weighted average
loss rate
31-Dec-23 EGP'000 EGP'000 EGP'000
Current (not past due) 2.42% 227,746 (5,507)
1-30 days past due 6.41% 115,230 (7,389)
31-60 days past due 8.13% 95,834 (7,790)
61-90 days past due 13.53% 49,489 (6,694)
91-120 days past due 14.56% 35,089 (5,109)
121-150 days past due 16.47% 24,383 (4,017)
More than 150 days past due 71.48% 205,037 (146,564)
As at 31 December, the ageing analysis of trade receivables is as follows:
EGP'000 EGP'000 EGP'000 EGP'000 EGP'000
Total < 30 days 30-60 days 61-90 days > 90 days
2024 804,081 456,067 128,134 80,823 139,057
2023 569,738 330,080 88,044 42,795 108,819
17. Cash and cash equivalents
2024 2023
EGP'000 EGP'000
Cash at banks and on hand 516,318 412,561
Treasury bills (less than 3 months) 14,358 21,461
Term deposits (less than 3 months) 657,406 240,231
1,188,082 674,253
Cash at banks earns interest at floating rates based on daily bank deposit
rates. Short-term deposits and treasury bills are made for varying periods of
between one day and three months, depending on the immediate cash requirements
of the Group, and earn interest at the respective weighted average rate. Of
the above Short-term deposits, EGP 536,850k (2023: EGP 210,000k) relates
to amounts held in Egypt with a weighted average rate of 22.65% (2023:
16.40%), EGP 49,984k (2023: EGP 20,103k) relates to amounts held in Jordan
with a weighted average rate of 4.86% (2023: 5.00%), EGP 70,572k (2023: EGP
Nil) relates to amounts held in Mauritius with a weighted average rate of
4.80% (2023: Nil) and EGP Nil (2023: EGP: 10,128k) relates to amounts held
in Nigeria with a weighted average rate of Nil (2023:5.6%). Treasury bills are
denominated in EGP and earn interest at a weighted average rate of 30.52%
(2023: 24.95%) per annum.
18. Financial assets at amortised cost
2024 2023
EGP'000 EGP'000
Term deposits (more than 3 months) 468,142 49,244
Treasury bills (more than 3 months) 59,690 111,854
527,832 161,098
The maturity date of the fixed term deposit and treasury bills is between 3-12
months. Treasury bills are denominated in EGP and earn interest at an
effective rate of 29.96% (2023: 25.34%) per annum. Of the above Term
deposits, EGP 42,736k (2023: EGP 17,126k) relates to amounts held in Egypt
with a weighted average rate of 15.97% (2023: 5.17%), EGP 69,900k (2023: EGP
32,118k) relates to amounts held in Jordan with a weighted average rate of
5.09% (2023: 5.38%) and EGP 355,506k (2023: EGP Nil) relates to amounts held
in Dubai with a weighted average rate of 4.33% (2023: Nil%)
19. Share capital and reserves
The Company's ordinary share capital is $145,331,568 equivalent to EGP
1,039,120,711.
All shares are authorised and fully paid and have a par value $0.25.
31-Dec-24 31-Dec-23
In issue at beginning of the year 600,000,000 600,000,000
Buyback of shares (18,673,728) -
In issue at the end of the year 581,326,272 600,000,000
On 18 September 2024, Integrated Diagnostics Holding PLC Company "IDH"
Purchased a total of 18,673,728 treasury shares at a total amount of EGP 374.4
million, all of these treasury shares were cancelled on 8 October 2024.
The table below shows the number of shares held by Hena Holdings Limited and
Actis IDH BV as well as how many shares are then held which are floating and
not held by companies that do not have individuals on the board of the Group.
2024 Ordinary shares
Ordinary shares
Ordinary share capital Name Number of shares % of contribution Par value
USD
Hena Holdings Limited 162,445,383 27.94% 40,611,346
Actis IDH B V 126,000,000 21.67% 31,500,000
Free floating 292,880,889 50.39% 73,220,222
581,326,272 100% 145,331,568
Ordinary share capital Name
Number of shares
% of contribution
Par value
USD
Hena Holdings Limited
162,445,383
27.94%
40,611,346
Actis IDH B V
126,000,000
21.67%
31,500,000
Free floating
292,880,889
50.39%
73,220,222
581,326,272
100%
145,331,568
Other Reserves
The capital reserve was created when the Group's previous parent company,
Integrated Diagnostics Holdings LLC - IDH (Caymans) arranged its acquisition
by Integrated Diagnostics Holdings PLC, a new legal parent. The balances
arising represent the difference between the value of the equity structure of
the previous and new parent companies.
During 2024, The capital reserve was impacted by the reduction of put option
in Medical Health Development Company ("MHD") after acquiring the stake
previously held by Izhoor Holding Medical Company LLC ("Izhoor"), therefore
the put option is no longer needed.
During 2024, The capital redemption reserve was impacted by the purchasing and
cancelling of treasury stocks based on approval by shareholders through an
Extraordinary general meeting, The shares were purchased at an average price
of EGP 20.05 per share for 18,673,728 shares.
Legal reserves
Legal reserve was formed based on the legal requirements of the Egyptian law
governing the Egyptian subsidiaries. According to the Egyptian subsidiaries'
article of association 5% (at least) of the annual net profit is set aside to
from a legal reserve. The transfer to legal reserve ceases once this reserve
reaches 50% of the entity's issued capital. If the reserve falls below the
defined level, then the entity is required to resume forming it by setting
aside 5% of the annual net profits until it reaches 50% of the issued share
capital.
Put option reserve
Through acquisitions made within the Group, put option arrangements have been
entered into to purchase the remaining equity interests in subsidiaries from
the vendors at a subsequent date. At acquisition date an initial put option
liability is recognised and a corresponding entry recognised within the put
option reserve. After initial recognition the accounting policy for put
options is to recognise all changes in the carrying value of the liability
within put option reserve. When the put option is exercised by the vendors the
amount recognised within the reserve will be reversed.
Translation reserve
The foreign currency translation reserve is used to record exchange
differences arising from the translation of the financial statements of
foreign subsidiaries.
20. Distributions made and proposed
A dividend in respect of the year to 31 December 2024 is being evaluated, and
in light of recent strong performance the Directors have the intention to
propose this. However, any amount will not be confirmed or committed until
after finalisation of the half-year results for the financial year to 31
December 2025. No dividend was paid in respect of financial year to 31
December 2023.
21. Provisions
Provision for end Of Service Provision for Egyptian Government Training Fund for employees Provision for legal claims Total
EGP'000 EGP'000 EGP'000 EGP'000
At 1 January 2024 332 11,865 5,561 17,758
Provision made during the year 2,206 995 5,667 8,868
Provision used during the year (96) - (871) (967)
Provision reversed during the year - (2,073) (598) (2,671)
Effect of translation currency 300 - - 300
At 31 December 2024 2,742 10,787 9,759 23,288
Current - - - -
Non- Current 2,742 10,787 9,759 23,288
Provision for end Of Service Provision for Egyptian Government Training Fund for employees Provision for legal claims Total
EGP'000 EGP'000 EGP'000 EGP'000
At 1 January 2023 - - 3,519 3,519
Provision made during the year 331 11,865 3,496 15,692
Provision used during the year - - (771) (771)
Provision reversed during the year - - (683) (683)
Effect of translation currency 1 - - 1
At 31 December 2023 332 11,865 5,561 17,758
Current - - - -
Non- Current 332 11,865 5,561 17,758
Egyptian Government Training Fund for employees
According to Article 134 of the Labor Law for Vocational Guidance and Training
issued by the Egyptian government in 2003, Al-Borg, Almokhtabar and Integrated
Medical Analysis Company shall comply with the requirements stipulated in this
law to provide 1% of net profits each year in the training fund.
End Of Service
As per Article 88 of the Labor Law in Saudi Arabia, in the event of the
termination of an employee's service, the company is required to settle the
wages owed within one week. Conversely, if the employee terminates the
contract, the company is obligated to fulfil their rights within two weeks.
Legal claims provision
The amount comprises the gross provision in respect of legal claims brought
against the Group. Management's opinion, after taking appropriate legal
advice, is that the outcome of these legal claims will not give rise to any
significant loss beyond the amounts provided as at 31 December 2024.
22. Trade and other payables
2024 2023
EGP'000 EGP'000
Trade payables 320,068 271,741
Accrued expenses 246,523 178,499
Due to related parties note (26) 28,654 5,962
Other payables 125,935 112,750
Deferred revenue 96,410 59,918
Accrued finance cost 8,661 8,891
826,251 637,761
23. Put option liability
2024 2023
EGP'000 EGP'000
Current put option - Al Makhbariyoun Al Arab 512,577 301,383
Current put option - Eagle Eye-Echo scan 19,922 12,413
532,499 313,796
2024 2023
EGP'000 EGP'000
Non-current put option - Medical Health Development - 42,786
- 42,786
Put option - Al Makhbariyoun Al Arab Group
The accounting policy for put options after initial recognition is to
recognise all changes in the carrying value of the put liability within
equity.
Through the historical acquisitions of Al Makhbariyoun Al Arab the Group
entered into separate put option arrangements to purchase the remaining equity
interests from the vendors at a subsequent date. At acquisition a put option
liability has been recognised for the net present value for the exercise price
of the option.
The options is calculated at seven times EBITDA of the last 12 months minus
Net Debt, it's exercisable in whole from the fifth anniversary of completion
of the original purchase agreement, which fell due in June 2016. The vendor
has not exercised this right at 31 December 2024. It is important to note that
the put option liability is treated as current as it could be exercised at any
time by the NCI. However, based on discussions and ongoing business
relationship, there is no expectation that this will happen in next 21 months.
The option has no expiry date.
Put option - Eagle Eye-Echo scan
IFC has the option to put its shares according to definitive agreements signed
on 15 January 2018 between Dynasty group Holdings Limited and International
Finance Corporation (IFC) related to the Eagle Eye-Echo Scan Limited
transaction, IFC has the option to put it is shares to Dynasty group Holdings
Limited in year 2024. The put option price will be calculated on the basis of
the fair market value determined by an independent valuer.
According to the International Private Equity and Venture Capital Valuation
Guidelines, there are multiple ways to calculate the put option including
Discounted Cash Flow, Multiples, Net assets. Multiple valuation was applied
and EGP 20 million was calculated as the valuation as at 31 December 2024
(2023; EGP 12 m). In line with applicable accounting standards with IAS 32 the
entity has recognised a liability for the present value of the exercise price
of the option price.
Put option - Medical Health Development
Based on the agreement made on October 27th, 2022, between Business Flower
Holding LLC, Integrated Diagnostics Holdings plc and Al Makhbariyoun Al Arab
there is a clause that in cases of bankruptcy and defaulting, a non-defaulting
party is entitled to implement any of the following options for a defaulting
party's share without reference to it:
(A) sell to the Non-Defaulting Party its Shares at the Fair Price of such
Shares.
(B) buy the Non-Defaulting Party's Shares at the Fair Price of such Shares.
(C) requesting the dissolution and liquidation of the Company.
The company has not yet commenced its operations, the Group has recognized a
put option as a liability in the non-current assets. This put option
represents a 49% share of non-controlling interest in the total equity,
amounting to EGP 43 million. The valuation was determined as of December 31,
2023. Following the IAS 32 accounting standard, the entity has recorded a
liability for the present value of the exercise price of the option.
On 8 December 2024, After Acquiring the Stake previously held by Izhoor
Holding Medical Company LLC ("Izhoor") by EGP 162,474k the put option was
reduced as it is no longer in place.
24. Borrowings
The terms and conditions of outstanding loans are as follows:
Currency Nominal Maturity 31 Dec 24 31 Dec 23
interest rate
AUB ـــ BANK EGP CBE corridor rate*+1% 26 January 2027 67,465 94,451
AUB - BANK EGP Secured 5% 3 December 2025 17,940 13,121
Bank: Sterling BANK NGN Secured 19% 26-May 2024 - 3,573
Mashreq bank USD Secured** 5% 30 November 2025 162,474 -
Bank Al Etihad JOD Secured 11.75% 15 July 2025 17,128 -
265,007 111,145
Amount held as:
Current Liability 224,528 43,680
Non-current liability 40,479 67,465
265,007 111,145
*As at 31 December 2024 corridor rate is 28.25% (2023: 20.25%).
** This amount is able to be recalled on demand by the bank.
A) In July 2018, AL-Borg lab, one of IDH subsidiaries, was granted a
medium term loan amounting to EGP 130.5m from Ahli United Bank "AUB Egypt" to
finance the investment cost related to the expansion into the radiology
segment. As at 31 December 2024, only EGP 124.9M had been drawn down from the
total facility available with EGP 57.4M repaid, the loan will be fully repaid
by January 2027.
The loan contains the following financial covenants which if breached will
mean the loan is repayable on demand:
1. The financial leverage shall not exceed 0.7 throughout the period
of the loan
"Financial leverage": total bank debt divided by equity
2. The debt service ratios (DSR) shall not be less than 1.35 starting
2020
"Debt service ratio": cash operating profit after tax plus depreciation for
the financial year less annual maintenance on machinery and equipment adding
cash balance (cash and cash equivalents) divided by total financial payments.
"Cash operating profit": Operating profit after tax, interest expense,
depreciation and amortization, is calculated as follows: Net income after tax
and unusual items adding Interest expense, Depreciation, Amortisation and
provisions excluding tax related provisions less interest income and
Investment income and gains from non-recurring items.
"Financial payments": current portion of long-term debt including interest
expense and fees and dividends distributions.
3. The current ratios shall not be less than 1.
"Current ratios": Current assets divided current liabilities.
AL- Borg company didn't breach any covenants for MTL agreements.
25. Financial obligations
The Group leases property and equipment. Property leases include branches,
warehouse, parking and administration buildings. The leases typically run for
average period from 5-10 years, with an option to renew the lease after that
date. Lease payments are renegotiated with renovation after the end of the
lease term to reflect market rentals. For certain leases, the Group is
restricted from entering into any sub-lease arrangements. The property leases
were entered into as combined leases of land and buildings.
Adding to remaining agreement signed in 2015, to service the Group's
state-of-the-art Mega Lab. The agreement periods are 5 and 8 years which is
deemed to reflect the useful life of the equipment. If the minimum annual
commitment payments are met over the agreement period ownership of the
equipment supplied will legally transfer to the IDH. The finance asset and
liability has been recognised at an amount equal to the fair value of the
underlying equipment. This is based on the current cost price of the equipment
supplied provided by the suppliers of the agreement. The averaged implicit
interest rate of finance obligation has been estimated to be 10.3%. The
equipment is being depreciated based on units of production method as this
most closely reflects the consumption of the benefits from the equipment.
Information about the agreements for which the Group is lessee is presented
below.
a) Right-of-use assets
Buildings Buildings
2024 2023
EGP'000 EGP'000
Balance at 1 January 683,025 622,975
Addition for the year 109,710 157,482
Depreciation charge for the year (173,655) (134,033)
Terminated Contracts (18,288) (5,170)
Exchange differences 152,506 41,771
Balance at 31 December 753,298 683,025
b) Other Financial obligations
Future minimum financial obligation payments under leases and sales purchase
contracts, together with the present value of the net minimum lease payments
are, as follows:
2024 2023
EGP'000 EGP'000
*Financial liability- laboratory equipment 263,892 240,015
*Lease liabilities building 943,195 828,039
1,207,087 1,068,054
*The financial obligation liabilities for the laboratory equipment and
building are payable as follows:
Minimum payments Interest Principal
At 31 December 2024 2024 2024 2024
EGP'000 EGP'000 EGP'000
Less than one year 372,329 136,132 236,197
Between one and five years 1,104,329 308,544 795,785
More than 5 years 230,185 55,080 175,105
1,706,843 499,756 1,207,087
Interest Principal
Minimum payments
At 31 December 2023 2023 2023 2023
EGP'000 EGP'000 EGP'000
Less than one year 291,342 114,638 176,704
Between one and five years 1,054,902 295,586 759,316
More than 5 years 166,965 34,931 132,034
1,513,209 445,155 1,068,054
c) Amounts other financial obligations recognised in consolidated
income statement
2024 2023
EGP'000 EGP'000
Interest on lease liabilities 112,544 93,298
Expenses related to short-term lease 7,981 10,540
26. Related party transactions disclosures
The significant transactions with related parties, their nature volumes and
balance during the period 31 December 2024 and 2023 are as follows:
2024
Related Party Nature of transaction Nature of relationship Transaction amount of the year Amount due from / (to)
EGP'000 EGP'000
ALborg Scan (S.A.E)* Expenses paid on behalf Affiliate** - -
International Fertility (IVF)** Expenses paid on behalf Affiliate*** 11 11
H.C Security Provide service Entity owned by Company's board member 20 (73)
Life Health Care Provided service Entity owned by Company's CEO (2,677) 695
Dr. Amid Abd Elnour Put option liability Bio. Lab C.E.O and shareholder (211,194) (512,577)
Current account Bio. Lab C.E.O and shareholder (19,217) (19,683)
International Finance corporation (IFC) Put option liability Echo-Scan shareholder (7,508) (19,921)
International Finance corporation (IFC) Current account Echo-Scan shareholder - -
Integrated Treatment for Kidney Diseases (S.A.E) Rental income Entity owned by Company's CEO (2,582) 4,837
Medical Test analysis 591
HENA HOLDINGS LTD shareholders' dividends deferral agreement shareholder (1,916) (4,879)
ACTIS IDH LIMITED shareholders' dividends deferral agreement shareholder (1,579) (4,019)
(555,609)
2023
Related Party Nature of transaction Nature of relationship Transaction amount of the year Amount due from / (to)
EGP'000 EGP'000
ALborg Scan (S.A.E)* Expenses paid on behalf Affiliate** (351) -
International Fertility (IVF)** Expenses paid on behalf Affiliate*** (1,771) -
H.C Security Provide service Entity owned by Company's board member 6 (93)
Life Health Care Provided service Entity owned by Company's CEO 855 3,373
Dr. Amid Abd Elnour Put option liability Bio. Lab C.E.O and shareholder 138,312 (301,383)
Current account Bio. Lab C.E.O and shareholder 19,542 (466)
International Finance corporation (IFC) Put option liability Echo-Scan shareholder 38,587 (12,413)
International Finance corporation (IFC) Current account Echo-Scan shareholder 623 -
Integrated Treatment for Kidney Diseases (S.A.E) Rental income Entity owned by Company's CEO 217 1,664
Medical Test analysis 591
HENA HOLDINGS LTD shareholders' dividends deferral agreement shareholder (590) (2,963)
ACTIS IDH LIMITED shareholders' dividends deferral agreement shareholder (485) (2,440)
Business Flowers Holding Put option liability shareholder - (42,786)
(357,507)
* ALborg Scan is a company whose shareholders include Dr. Moamena Kamel
(founder of IDH subsidiary Al-Mokhtabar Labs).
** International Fertility (IVF) is a company whose shareholders include Dr.
Moamena Kamel (founder of IDH subsidiary Al-Mokhtabar Labs).
During the year payments relating to lease obligations of Biolab were made to
entities considered to be related parties due to the interest in them held by
Dr Amid Abd Elnour. Payments made during 2024 were JOD 342,718 (EGP
21,970,728) and during 2023 were JOD 240,991 (EGP 10,392,148).
On 8 December 2024, IDH Acquired the Stake previously held by Izhoor Holding
Medical Company LLC ("Izhoor") by EGP 162,474k.
Terms and conditions of transactions with related parties
Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash. There have been no guarantees provided or received
for any related party receivables or payables. For the year ended 31 December
2024, the Group has not recorded any impairment of receivables relating to
amounts owed by related parties (2023: nil). This assessment is undertaken
each financial year through examining the financial position of the related
party and the market in which the related party operates.
IDH opts to pay approximately 1% of the net after-tax profit of the
subsidiaries Al Borg and Al Mokhtabar to the Moamena Kamel Foundation for
Training and Skill Development. Established in 2006 by Dr. Moamena Kamel, a
Professor of Pathology at Cairo University and founder of IDH subsidiary
Al-Mokhtabar Labs and mother to the CEO Dr. Hend El Sherbini. The Foundation
allocates this sum to organisations and groups in need of assistance. The
foundation deploys an integrated program and vision for the communities it
helps that include economic, social, and healthcare development initiatives.
In 2024 EGP 6,003k (2023: EGP 6,631k) was paid to the foundation by the IDH
group in relation to profits earned for companies Al Borg and Al Mokhtabar in
the prior year.
Compensation of key management personnel of the Group
Key management people can be defined as the people who have the authority and
responsibility for planning, directing, and controlling some of the activities
of the Company, directly or indirectly.
The amounts disclosed in the table are the amounts recognised as an expense
during the reporting period related to key management personnel.
2024 2023
EGP'000 EGP'000
Short-term employee benefits 87,421 68,621
Total compensation paid to key management personnel 87,421 68,621
27. Reconciliation of movements of liabilities to cash flows arising
from financing activities
EGP'000 Other loans Other financial
,borrowings and accrued interest
obligation
Balance at 1 January 2024 125,439 1,068,054
Proceeds from loans and borrowings 184,941 -
Repayment of borrowings (35,047) -
Payment of liabilities - (185,568)
Interest paid (24,226) (146,579)
Exchange differences 7,463 233,835
Total changes from financing cash flows 133,131 (98,312)
New agreements signed in the period - 109,710
Terminated contracts during the year - (18,943)
Interest expense 23,996 146,578
Total liability-related other changes 23,996 237,345
Balance at 31 December 2024 282,566 1,207,087
EGP'000 Other loans Other financial
,borrowings and accrued interest
obligation
Balance at 1 January 2023 127,420 1,062,896
Proceeds from loans and borrowings 71,630 -
Repayment of borrowings (76,911) -
Payment of liabilities - (239,132)
Interest paid (19,612) (118,777)
Exchange differences - 62,391
Total changes from financing cash flows (24,893) (295,518)
New agreements signed in the period - 187,581
Terminated contracts during the year - (5,682)
Interest expense 22,912 118,777
Total liability-related other changes 22,912 300,676
Balance at 31 December 2023 125,439 1,068,054
28. Current tax liabilities
2024 2023
EGP'000 EGP'000
Debit withholding Tax (Deduct by customers from sales invoices) (29,693) (10,412)
Income Tax 330,639 87,835
Credit withholding Tax (Deduct from vendors invoices) 32,265 8,762
Other 11,054 17,324
344,265 103,509
Debit withholding tax of EGP 29,693k (2023: EGP 10,412k) represent a
proportion of payments withheld by customers which are paid to the tax
authorities on behalf of the Group.
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. END FR SFAFAMEISEFLRecent news on Integrated Diagnostics Holdings
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