21st Nov 2018 12:16
LONDON (Alliance News) - Integrated Diagnostics Holdings PLC on Wednesday posted significant revenue growth for the first nine months of 2018 with a particularly strong performance from its walk-in segment.
Shares in the consumer healthcare company were up 1.3% at USD3.80 on Wednesday.
In nine months to September 30, Integrated Diagnostics revenue increased 25% to EGP1.38 billion or GBP6.0 million. This represents a 25% increase from its EGP1.10 billion revenue the year before.
The strongest revenue growth, 34% year-on-year, came from the company's walk-in segment, where revenue grew to EGP581.1 million from EGP434.6 million.
Improved pricing and a "turnaround in walk-in patient trends" were the source of this walk-in growth.
Revenue from contract clients also improved as a result of a "trend toward corporate health insurance coverage", up 20% to EGP796.3 million from EGP666.3 million.
Integrated Diagnostics' operations are located in Jordan, Egypt, Nigeria, and Sudan.
Egypt remained its strongest market, providing 83% of revenue. Moreover, revenue from Egypt grew to EGP1.14 billion from EGP904 million.
Sudan was the only detractor from growth, with an 18% drop in revenue contribution to EGP28 million from EGP34 million the year prior.
For 2018, Integrated Diagnostics is targeting combined revenue growth of 20% from its established business, which excludes Nigeria.
Net profit was up 26% to EGP356 million from EGP283 million on the back of this revenue growth but also as a result of an improved gross margin and increased interest income.
Integrated Diagnostics' earnings before interest, taxation, depreciation, and amortization margin was stable at 39% versus 40% for the year-ago period, and the company affirmed its guidance at 40%. This 40% figure also excludes Nigeria.
"Our nine-month results leave me increasingly confident that our group will end 2018 on a strong note with financial performance in line with our targets and having made significant headway on our strategic initiatives," said Integrated Diagnostics Chief Executive Hend El-Sherbini.
"I'm pleased to report that Nigeria's integration efforts and value-building phase are progressing according to business plan, and we expect the operation to begin contributing to group profitability by 2019," El-Sherbini added.
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