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 EBITDA1	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 Balance2	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 Indicators³

EGP	FY 2023	FY 2024	Change
Branches	601	6284	+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 EBITDA⁵ 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's⁶ 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.

 

For more information about the event, please contact: 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

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 rate⁸ 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.

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.

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 expense9 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 debt10 (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 Borrowings11 23 24 5% Bank Charges 12 17 43% Fast Track Payment 7 9 25% Total Interest Expense 161 197 22%   Foreign Exchange12 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 cash13 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 Cost14 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 debt15 (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 Payable16 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 market, Egypt, and, to a lesser extent, those of its other operating geographies. Egypt accounted for 83% of consolidated revenues in 2024 (83% in 2023) and 93% of adjusted EBITDA (89% in 2023).   Starting in early 2022, IDH's home and largest market has been directly impacted by the Russian-Ukraine war due to the country's reliance on wheat imports and tourism revenue from both countries and its exposure to capital 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 throughout all of 2024, the country was also directly impacted by the ongoing war in Gaza. In particular, the most recent escalation has weighed on the country's tourism and Suez Canal revenues, both of which represent an important source of foreign currency for the Egyptian government. Moreover, due to Egypt's reliance on Israeli natural gas imports, the conflict (which temporarily came to a halt in January 2025 before restarting on 18 March 2025) led to a worsening of an already ongoing electricity crisis, which saw the government impose multi-hour blackouts throughout the summer and fall months of 2023. While these blackouts were temporarily reintroduced in the spring 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.   It is worth noting that while Egypt's situation remains uncertain, starting in 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.	Overall, management reiterates that IDH employs a robust and resilient business model which has helped the Company navigate several economic and political downturns, including two revolutions, while allowing the business to 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, the Company launched its Saudi Arabian venture under the name Biolab KSA. Once fully ramped up, the venture will offer a full suite of diagnostic testing services.   IDH has maintained an active approach in shielding the business from exchange rate fluctuations in its markets. As part of its mitigation efforts, IDH negotiates contracts with tenures ranging from 5 to 7 years (at fixed FX rates, which only get revised once the currency surpasses an agreed upon value) and purchases laboratory test kits on contract with volume-linked prices. Meanwhile, thanks to its large scale and longstanding supplier relationships, the Company is able to secure favourable test kit prices with all its major suppliers. Additionally, the Company takes proactive steps to hedge against foreign currency risks on a case-by-case basis whenever applicable.   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 rate environments.                                                                               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 political turmoil, starting with the secession of South Sudan in 2011 and the associated loss of the majority of the country's oil production. This unrest continued throughout the remainder of the decade, eventually culminating in the removal of the country's president, President Al-Bashir, in 2019 via a military coup. Despite a significant easing of tensions in 2022, a violent conflict erupted in April 2023 between two rival groups; the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). The conflict is currently 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.	It is worth highlighting that in 2024 Sudan only constituted 0.05% of consolidated revenues. With regards to the ongoing conflict, management continues to actively monitor the evolving situation on the ground, taking all necessary measures to safeguard its operations and guarantee the health and safety of its personnel and patients. This included the temporary suspension of all commercial activities at the start of the conflict at 17 of its 18 branches. IDH is also taking steps to keep its stakeholders updated on the developing situation.                     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 on 7 October 2023 following an attack by Gaza-based group, Hamas. Israel responded by launching a retaliation campaign on Gaza, enacting a 15-month-long total siege on the territory. As of the end of February 2025, 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 the parties involved agreed to cease fire agreements and the gradual release of hostages held by both sides. Fighting in Gaza has since restarted, with a new Israeli campaign commencing on 18 March 2025.   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.	While this specific conflict has no direct mitigations from the Company's side, IDH continues to actively monitor the situation, placing an emphasis on remaining updated on the impacts of the war on IDH's markets of operation and the subsequent repercussions on IDH's business.   However, it is worth noting that IDH's business is inherently resilient to macroeconomic and political difficulties, due to its inelastic nature of healthcare and diagnostics demand. While the Company does not expect any major direct impact from this war on its operations, it will continue monitoring events and update the market, as necessary.
Global Supply Chain Disruptions   While disruptions to global supply chains, which negatively impacted businesses and consumers all over the world during the post-Covid-19 recovery have partially eased, they remain well below optimal levels of efficiency. Throughout 2024, the main challenges weighing on global supply chains globally included missile attacks on commercial shipping in the Red Sea, automotive production delays following floods in Europe, and trade tensions slowing the movement of semiconductor products, manufacturing equipment, and critical materials. Despite this, global supply chain disruptions have had limited impacts on IDH's operations throughout 2024 and earlier years.	IDH's management team continually monitors the evolving situation and have taken proactive steps to build up its inventory to shield the Group from any potential future disruptions. IDH is in continual dialogue with key suppliers to gauge the risk associated with a shortage of materials and is yet to identify a weakness. Throughout 2024, thanks to IDH's proactive inventory build-up and sourcing strategy, the Group continued to face no problems acquiring raw materials.
Supplier Risk   IDH faces the risk of suppliers re-opening price negotiations in the face of increased inflationary pressures and/or a possible, albeit limited, devaluation risk.   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).	IDH boasts strong, longstanding relationships with its key suppliers, to whom IDH remains a large regional client. Due to the sheer volume of kits the Group 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.   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 necessary government clearance and are subject to higher taxation on payment of dividends. It is worth noting that following challenges in 2022 and 2023 related to the sourcing of foreign currency, the situation in Egypt has improved significantly despite limitations on non-essential transactions remaining.	As a foreign investor in Egypt, IDH currently does not face issues in the repatriation of dividends. However, due to prevailing market volatility and as a precautionary measure, the Company decided to suspend dividend distributions for 2022 and 2023. Meanwhile, the declaration of a dividend for the year ended 31 December 2024 has been deferred until after the release of the Company's 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, and constantly evolving laws and regulations, in addition to changing enforcement regimes in each of its operating geographies. Further, the Group's 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.	The Group's legal and the quality assurance teams work together to keep IDH fully informed, and in compliance with, both legislative and regulatory updates.   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 may also be restricted in cases by recommended or mandatory fees set by government ministries and other authorities.   The risk may be more apparent in cases of increased inflationary pressures, particularly following the devaluation of the Egyptian Pound and its subsequent effects.                   The Group may also face pricing pressure from existing competitors and new market entrants.	This is an external risk for which few mitigants exist.   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 able to leverage its nationwide network to attract contract clients to the Group (65% of the Company's revenues in 2024 were generated through its 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.
Cybersecurity risks   IDH controls a vast and growing database of confidential data for its patient records; to this end, there is a cybersecurity risk for both data confidentiality and security.	The Company places top priority on its data security, regularly conducting stress tests of its IT infrastructure to confirm the effectiveness of its 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 management team boasting decades of experience in their respective fields. The loss of key members of IDH's team could materially affect the Company's operations and business.                 Business interruption: Virtually all aspects of the Group's business use IT systems extensively. This includes test and exam results reporting, billing, customer service, logistics, and management of medical data. Similarly, business interruption at one of the Group's larger facilities could result in 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.	IDH comprehends the importance of strengthening its human capital to support its future growth plans. The Company is therefore committed to expanding its senior management team, under the experienced leadership of its CEO, Dr. Hend 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 2024 contributed to 16% of total revenue versus a pre-pandemic average of 9%. Moreover, the Group's important role in conducting key testing in both Egypt and Jordan makes it unlikely that branches would be closed even if new restrictive measures were introduced.
Climate-related risks IDH's operations currently face low physical and transitional risks related to climate change.	In 2022, the Company decided to begin reporting based on the Task Force on 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.