21st Mar 2018 12:21
LONDON (Alliance News) - Middle East & Africa-focused consumer healthcare firm Integrated Diagnostics Holdings PLC hiked its dividend Wednesday after 2017 profit and revenue grew strongly as it looks ahead to a stronger Egyptian economy and its entry into the Nigerian market.
In 2017, pretax profit expanded 44% to EGP558.4 million or GBP22.6 million from EGP388.5 million or GBP15.7 million the year prior. This was after revenue rose 29% to EGP1.51 billion or GBP61.2 million from EGP1.17 billion or GBP47.3 million the year before.
Profit performance was also helped by a dramatic improvement in net finance costs to a EGP18.1 million tailwind from a EGP77.7 million headwind.
Integrated Diagnostics proposed a 16 US cents final dividend per share, up 14% from 14 US cents the year prior. The company does not pay an interim dividend.
"IDH was able to successfully execute our proven business model under difficult operating conditions again in 2017," Integrated Diagnostics Chief Executive Officer Hend El-Sherbini said. "Supported by the fundamental strength of our brands and longstanding supplier relationships, we were able to drive patient and test volume growth; generate a 29% increase in revenues; and produce an EBITDA margin of 40%. By doing so, we managed to protect our profit margins and increase our market share last year."
"There is welcome evidence of macroeconomic progress in Egypt, our largest market, as the government continues to implement a bold programme of reforms," El-Sherbini added. "We are optimistic that the Egyptian economy will continue to gather strength in the coming year that translates into some easing of the pressure of high inflation that has persisted since the late 2016 devaluation of the Egyptian pound."
"In sync with our strategy to expand through strategic acquisitions as well as organic growth, we are pleased to begin the 2018 year with an investment in Nigeria-a very large, highly-fragmented and underpenetrated market that shares many similarities with Egypt's market in the 1980s and 1990s," El-Sherbini continued.
"We enter 2018 in a strong financial position and well positioned as a leading consumer healthcare company in the Middle East and Africa," El-Sherbini concluded. "In the coming year, we will continue to focus on expanding our geographies as well as on the process of integrating our new Nigerian operations."
Shares in Integrated were 0.1% higher at USD4.33 on Wednesday.
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