TIDMIDHC
RNS Number : 8704K
Integrated Diagnostics Holdings PLC
31 August 2023
Integrated Diagnostics Holdings Plc
1H 2023 Results
Thursday, 31 August 2023
Integrated Diagnostics Holdings Plc delivers robust 40%
year-on-year conventional revenue growth in 1H 2023
(Cairo and London) - Integrated Diagnostics Holdings ("IDH,"
"the Group," or "the Company"), a leading provider of diagnostic
services with operations in Egypt, Jordan, Nigeria, Sudan, and soon
launching in Saudi Arabia, announced today its reviewed financial
statements for the six-month period ended 30 June 2023, booking
revenues of EGP 1,872 million, down 4% from the figure recorded
during the same period of 2022 when Covid-19-related testing(1) had
significantly boosted results. Excluding (2) the contributions made
by IDH's Covid-19-related offering in 1H 2022, the Company's
conventional (3) business recorded robust year-on-year growth of
40%, continuing to showcase the underlying health of IDH's
business.
The strong performance delivered by the Company's conventional
segment was driven by 24% and 13% year-on-year increases in average
revenue per conventional test and conventional test volumes,
respectively. IDH posted a net profit of EGP 211 million in 1H
2023, down 52% year-on-year due to significant contributions from
Covid-19-related testing (31% of 1H 2022 revenues) in the same
period of the previous year.
On a quarterly basis, IDH recorded total revenues of EGP 957
million in Q2 2023, expanding 24% year-on-year and 5%
quarter-on-quarter. Similarly, the Company reported a solid 37%
year-on-year conventional revenue expansion in Q2 2023. Net profit
for the quarter stood at EGP 43 million, 66% below last year's
figure.
Financial Results (IFRS)(4)
EGP mn 1H 2022 1H 2023 Change
============================ ======== ======== ========
Revenues 1,954 1,872 -4%
---------------------------- -------- -------- --------
Conventional Revenues 1,339 1,872 40%
---------------------------- -------- -------- --------
Covid-19-related Revenues 615 - -
---------------------------- -------- -------- --------
Cost of Sales (1,122) (1,214) 8%
---------------------------- -------- -------- --------
Gross Profit 832 658 -21%
---------------------------- -------- -------- --------
Gross Profit Margin 43% 35% -7 pts
---------------------------- -------- -------- --------
Operating Profit 562 265 -53%
---------------------------- -------- -------- --------
EBITDA (5) 709 462 -35%
---------------------------- -------- -------- --------
EBITDA Margin 36% 25% -12 pts
---------------------------- -------- -------- --------
Net Profit 439 211 -52%
---------------------------- -------- -------- --------
Net Profit Margin 22% 11% -11 pts
---------------------------- -------- -------- --------
Cash Balance 816 666 -18%
---------------------------- -------- -------- --------
Note (1): Throughout the document, percentage changes between
reporting periods are calculated using the exact value (as per the
Consolidated Financials) and not the corresponding rounded figure
.
Key Operational Indicators(6)
1H 2022 1H 2023 Change
================================ ======== ======== =======
Branches 538 588 50
-------------------------------- -------- -------- -------
Patients ('000) 4,541 3,917 -14%
-------------------------------- -------- -------- -------
Revenue per Patient (EGP) 430 478 11%
-------------------------------- -------- -------- -------
Tests ('000) 16,004 16,465 3%
-------------------------------- -------- -------- -------
Conventional Tests ('000) 14,547 16,465 13%
-------------------------------- -------- -------- -------
Covid-19-related Tests ('000) 1,458 - -
-------------------------------- -------- -------- -------
Revenue per Test 122 114 -7%
-------------------------------- -------- -------- -------
Revenue per Conventional Test
(EGP) 92 114 24%
-------------------------------- -------- -------- -------
Revenue per Covid-19-related 422 - -
Test (EGP)
-------------------------------- -------- -------- -------
Test per Patient 3.5 4.2 19%
-------------------------------- -------- -------- -------
(1) Covid-19-related tests include both core Covid-19 tests
(Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as
other routine inflammatory and clotting markers including, but not
limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate
(ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the
Company opted to include in the classification as "other
Covid-19-related tests" due to the strong rise in demand for these
tests witnessed following the outbreak of Covid-19.
(2) Starting Q1 2023, IDH has opted to stop reporting on its
Covid-19-related revenues and test volumes due to their material
insignificance to the consolidated figures and to Egypt's and
Jordan's country-level results for the quarter. In the comparable
period of last year (1H 2022) IDH had recorded EGP 615 million in
Covid-19-related revenues and had performed 1.4 million
Covid-19-related tests.
(3) Conventional (non-Covid) tests include all of the Group's
test offering with the exception of its Covid-19-related test
offering outlined above.
(4) Important notice: In the Company's earnings releases
covering the five quarters starting from Q4 2021 and ending Q4
2022, management had opted to present Alternative Performance
Measures (APM) alongside IFRS-compliant figures as outlined on page
2 of the Company's FY 2022 Earnings Release. Starting in Q1 2023,
due to the material insignificance of Covid-19-related revenues on
consolidated results, the Company will only report IFRS-compliant
figures. It is worth noting that revenues for the comparable period
(Q1 2022), include concession fees amounting to EGP 63 million paid
by Biolab as part of its agreement with QAIA and Aqaba Port.
(5) EBITDA is calculated as operating profit plus depreciation
and amortization.
(6) Key operational indicators are calculated based on revenues
for the periods of EGP 1,872 million and EGP 1,954 million for 1H
2023 and 1H 2022, respectively.
Important notice: In the Company's earnings releases covering
the five quarters starting from Q4 2021 and ending Q4 2022,
management had opted to present Alternative Performance Measures
(APM) alongside IFRS-compliant figures as outlined on page 2 of the
Company's FY 2022 Earnings Release. Starting in Q1 2023, due to the
material insignificance of Covid-19-related revenues on
consolidated results, the Company will only report IFRS-compliant
figures. It is worth noting that revenues for the comparable period
(1H 2022) include concession fees amounting to EGP 63 million paid
by Biolab as part of its agreement with QAIA and Aqaba Port.
Introduction
i. Financial Highlights
-- Conventional(7) revenue booked EGP 1,872 million in the first
half of 2023, a year-on-year increase of 40%. Conventional revenue
growth was dual driven as conventional test volumes and average
revenue per conventional test increased 13% and 24%, respectively,
with the translation effect from a weaker EGP contributing just 8%
to growth for the period. On a quarterly basis, IDH posted
conventional revenues of EGP 957 million during Q2 2023, a 37%
year-on-year expansion driven by a 14% rise in test volumes and a
20% increase in average revenue per test.
-- Total revenues stood at EGP 1,872 million during 1H 2023, a
4% year-on-year decline from 1H 2022's high base when
Covid-19-related(8) testing had made a significant EGP 615 million
contribution(9) to the total revenue figure. On a three-month
basis, the Company recorded total revenues of EGP 957 million,
representing a 24% year-on-year increase. It is important to note
that the Company recorded its strongest monthly revenue figures in
the months of May and June (when controlling for the Eid-related
slowdown) signalling an acceleration which it expects to carry into
the second half of the year.
-- Gross Profit during 1H 2023 recorded EGP 658 million, a 21%
year-on-year decrease versus the comparable period when gross
profitability had been boosted by IDH's Covid-19-related test
offering. Gross profit margin (GPM) recorded 35% in 1H 2023 versus
43% in 1H 2022. Lower gross profitability in the first half of the
year primarily reflected an increase in direct salaries and wages
resulting from new staff hires and higher than usual salary
increases for existing staff to compensate for increased inflation
rates as well as higher depreciation related to the roll out of new
branches. On a quarterly basis, gross profit booked EGP 333
million, increasing 11% year-on-year. GPM recorded 35% in Q2 2023,
down from the 39% recorded in Q2 2022 and unchanged compared to the
figure reported in Q1 2023.
-- EBITDA(10) came in at EGP 462 million during 1H 2023,
declining 35% year-on-year yielding an associated margin of 25%.
Declining EBITDA profitability for the period was mainly driven by
the aforementioned decreased gross profitability coupled with
increased SG&A outlays including higher salary, auditing, and
consulting expenses, with the latter two reflecting the impact of a
weaker EGP, being USD-based. On a three-month basis, EBITDA
remained relatively stable at EGP 234 million in Q2 2023, with an
associated margin of 24%.
-- Net Profit for the six-month period ended 30 June 2023 stood
at EGP 211 million, down 52% year-on-year and with a net profit
margin (NPM) of 11%. On a quarterly basis, net profit booked EGP 43
million in Q2 2023, 66% below the figure reported in Q2 2022. It is
important to note that IDH's net profit for 1H 2023 and Q2 2023
included a non-recurring expense of EGP 12 million related to
contributions owed to the Egyptian government vocational training
fund for the previous five-year period.
-- In light of the ongoing uncertainty and lack of foreign
currency availability in Egypt, the Company will not be
distributing a dividend to shareholders in respect of the financial
year ended 31 December 2022. The Company remains committed to its
long-term dividend policy that sees it return to shareholders the
maximum amount of excess cash after taking careful account of the
cash needed to support operations and expansions.
(7) Conventional (non-Covid) tests include IDH's full service
offering excluding the Covid-19 related tests outlined below.
(8) Covid-19-related tests include both core Covid-19 tests
(Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as
other routine inflammatory and clotting markers including, but not
limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate
(ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the
Company opted to include in the classification as "other
Covid-19-related tests" due to the strong rise in demand for these
tests witnessed following the outbreak of Covid-19.
(9) Covid-19-related revenue in 1H 2022 includes EGP 63 million
in concession fees paid by Biolab to Queen Alia International
Airport and Aqaba Port as part of its revenue sharing
agreement.
(10) EBITDA is calculated as operating profit plus depreciation
and amortization.
ii. Operational Highlights
-- IDH's branch network stood at 588 branches as of 30 June
2023, increasing by 50 branches compared to the same time last
year. During Q2 2023, IDH inaugurated 12 additional branches, 11 in
its home market of Egypt and one in Jordan.
-- Conventional test volumes recorded 16.5 million tests in 1H
2023, increasing 13% year-on-year. Total test volumes increased 3%
year-on-year versus last year's 16.0 million tests which had
included 1.4 million Covid-19-related tests.
-- Average revenue per conventional test reached EGP 114 during
1H 2023, a 24% year-on-year increase (out of which translation
effect accounted for 8%). Consolidated average revenue per test
decreased 7% year-on-year to EGP 114 from EGP 122 in 1H 2022 when
the figure was boosted by contributions from the Group's
Covid-19-related offering.
-- Total patients served by the Company during 1H 2023 came in
at 3.9 million, down 14% from 1H 2022's high base. Meanwhile,
following a post-pandemic normalisation, average test per patient
increased to 4.2 tests in 1H 2023 from 3.5 tests in 1H 2022. This
stands well above IDH's historical average of 3.9 tests per
patient.
-- In Egypt (80.9% of total revenues) conventional business
climbed 33% year-on-year to record revenues of EGP 1,514 million
during 1H 2023. Conventional revenues were driven by a 14%
year-on-year increase in test volumes, which stood at 15.1 million
tests, as well as a 16% year-on-year rise in average revenue per
test to EGP 100. Meanwhile, consolidated revenues in Egypt remained
largely unchanged, recording EGP 1,514 million for the six-month
period.
-- In Jordan (15.5% of total revenues), Biolab continued its
impressive growth trend at its conventional business, posting
year-on-year revenue growth in JOD terms of 9% primarily supported
by an 8% rise in conventional tests performed versus last year. In
EGP terms, conventional revenue grew 88% year-on-year to reach EGP
290 million in 1H 2023, mainly reflecting the translation effect
resulting from a weakening EGP. Total revenues in EGP terms
declined 25% year-on-year versus 1H 2022 when Biolab's top-line had
been boosted by a large contribution from Covid-19-related
testing.
-- In Nigeria (3.1% of total revenues), Echo-Lab continued to
witness sustained growth in line with recent trends, as revenue in
NGN terms expanded 19% year-on-year (EGP revenue growth was
73%).
-- In Sudan (0.5% of total revenues), IDH's subsidiaries
recorded a 3% year-on-year revenue decline in EGP terms and 32%
drop in SDG terms reflecting the temporary closure of 16 out of 18
branches starting in April following the start of the ongoing
conflict in the country. As of 30 June 2023, IDH only had two
operational branches in Sudan, in Madani and Port Sudan.
iii. Management Commentary
Commenting on the Group's performance, IDH Chief Executive
Officer Dr. Hend El-Sherbini said: "I am delighted to report that
IDH continued to build on a strong start to the year to deliver yet
another set of impressive operational and financial results at our
conventional business supported by solid performances across our
Egyptian, Jordanian and Nigerian subsidiaries. The robust 40%
year-on-year growth in conventional revenues for the six-month
period came despite a difficult macroeconomic environment faced
across our markets of operation as accelerating inflation, rising
interest rates and weakening local currencies continued to impact
our patients' purchasing power and our cost base. In parallel,
during the second quarter of the year, patient volumes were
affected by the expected slowdown associated with the holy month of
Ramadan and Eid vacations which weighed on traffic in April and the
last week of June. Despite this, in the first six months of 2023 we
performed 13% more conventional tests than in the comparable period
of 2022, supported by an expanded branch network and an enhanced
service offering. In parallel, we also recorded a 24% year-on-year
rise in average revenue per conventional test reflecting the annual
price hikes introduced at the start of 2023. On this front, it is
important to highlight that our price increases since the start of
the year have lagged behind inflation, a strategic decision taken
to help patients during the ongoing difficult times and build
long-term loyalty in the process. It is also worth mentioning that
total revenues for the first half of 2023 declined just 4%
year-on-year, a remarkable result when considering the large
contribution made by our Covid-19-related test offering during the
first part of last year.
Looking at our markets in more detail, in both Egypt and Jordan
we continued to observe growing demand for our conventional service
offering with test volumes expanding 14% and 8% versus 1H 2022,
respectively. Combined with rising average revenue per test, this
translated in a robust 33% year-on-year conventional revenue
expansion in Egypt and a 9% year-on-year conventional revenue
growth in JOD terms in Jordan. Results like these continue to
showcase both countries' underlying growth potential and further
validate the effectiveness of our post-pandemic growth strategies.
We were particularly happy to note that across both markets during
the months of May and June (once adjusted for the Eid-related
slowdown) we recorded the highest monthly revenue figures since the
start of 2023. The accelerating growth, which we observed continue
into July and August, displays the resilience of demand for our
service offering despite the continued inflationary pressures
impacting our patients and leaves us in a strong position heading
into the second half of the year. During the six-month period, we
continued to expand our branch network rolling out 31 new branches
in Egypt and 4 new branches in Jordan, further cementing our
leadership position in each market. In line with recent trends, we
recorded robust contributions to revenue in Egypt made by our house
call service, which remains well-above its average pre-pandemic
contribution. In Egypt, we also remained committed to ramping up
our radiology business, which in the first half of the year
reported a 78% year-on-year increase in revenues and nearly doubled
its contribution to the country's top-line. Meanwhile, in Nigeria,
Echo-Lab recorded strong revenue growth in both local currency and
EGP terms, supported by both its radiology and pathology offerings.
Finally, as expected, results in Sudan were significantly impacted
by the ongoing conflict which has seen 16 of our 18 branches
temporarily shut down starting in April. Our team has put in place
robust mitigation strategies to protect our people and operations,
and regularly updates our response protocols to reflect the
evolving conditions on the ground.
Further down the income statement, we reported lower margins at
all levels of profitability primarily reflecting a post-Covid-19
normalisation and rising salary and wage expenses as we rolled out
higher than usual annual increases to protect our staff against
rising inflation as part of our talent retention strategy.
Meanwhile, we continued to record only moderate increases in raw
material outlays during the period, as we successfully leveraged
our robust supplier relationships to secure favourable test-kit
prices. Despite our cost base continuing to reflect the impacts of
rising inflation and a weakening EGP, in the coming months we see
them progressively normalising heading into 2024.
With two thirds of 2023 now behind us, I am confident that we
remain well placed to deliver on our operational and financial
targets for the year. In the coming months, we are particularly
looking forward to launching operations in Saudi Arabia in
December, while also making progress on our strategic priorities
and value-creation strategies across existing markets. Considering
our strong first half results, the solid strategies in place, and
the positive momentum enjoyed by our Egyptian and Jordian
subsidiaries, we reaffirm our guidance of full-year conventional
revenue (excluding Covid-19-related contributions) year-on-year
growth of around 30% for FY 2023."
- End -
Analyst and Investor Call Details
An analyst and investor call will be hosted at 1pm (UK) | 3pm
(Egypt) on Monday, 4 September 2023. You can 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 pathology and radiology
tests to patients in Egypt, Jordan, Nigeria and Sudan. The Group's
core brands include Al Borg, Al Borg Scan and Al Mokhtabar in
Egypt, as well as Biolab (Jordan), Ultralab and Al Mokhtabar Sudan
(both in Sudan) and Echo-Lab (Nigeria). 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 2,000 diagnostics tests. From its base of 552 branches as
of 31 December 2022, IDH served over 8.7 million patients and
performs more than 32.7 million tests in 2022. 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's expansion plans include acquisitions in
new 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 with a Standard Listing on the
Main Market of the London Stock Exchange (ticker: IDHC) since May
2015 with a secondary listing on the EGX since May 2021 (ticker:
IDHC.CA).
Shareholder Information
LSE: IDHC.L
EGX: IDHC.CA
Bloomberg: IDHC:LN
Listed on LSE: May 2015
Listed on EGX: May 2021
Shares Outstanding: 600 million
Contact
Nancy Fahmy
Investor Relations Director
T: +20 (0)2 3345 5530 | M: +20 (0)12 2255 7445 |
nancy.fahmy@idhcorp.com
Forward-Looking Statements
These results for the six-month period ended 30 June 2023 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.
Important notice: In the Company's earnings releases covering
the five quarters starting from Q4 2021 and ending Q4 2022,
management had opted to present Alternative Performance Measures
(APM) alongside IFRS-compliant figures as outlined on page 2 of the
Company's FY 2022 Earnings Release. Starting in Q1 2023, due to the
material insignificance of Covid-19-related revenues on
consolidated results, the Company will only report IFRS-compliant
figures. It is worth noting that revenues for the comparable period
(1H 2022) include concession fees amounting to EGP 63 million paid
by Biolab as part of its agreement with QAIA and Aqaba Port.
Group Operational & Financial Review
i. Revenue and Cost Analysis
Consolidated Revenue
IDH maintained its impressive performance during the first six months
of 2023, with revenues and volumes progressively picking up as the
year progressed to record their strongest monthly figures in May and
June (once adjusting for the Eid-related slowdown). During 1H 2023,
conventional revenues expanded 40% year-on-year to record EGP 1,872
million. Conventional revenue growth for the period was driven by a
13% rise in test volumes and a 24% increase in average revenue per
test (translation effect only contributed 8% to growth for the period).
On a quarterly basis, IDH's conventional revenues grew 37% year-on-year
to EGP 957 million in Q2 2023 driven by increases in test volumes and
average revenue per test.
Meanwhile, IDH's total revenues reached EGP 1,872 million in 1H 2023,
down 4% year-on-year as Covid-19-related testing had impacted total
results of 1H 2022. On a three-month basis, IDH recorded total revenues
of EGP 957 million, a 24% year-on-year increase from EGP 774 million
one year prior.
Revenue Analysis
Q1 Q1 Q2 Q2 1H 1H
2022 2023 2022 2023 % 2022 2023 %
--------------------------- ------ ------ ------ ------ ---- ------ ------ ----
Total revenue (EGP
mn) 1,180 915 774 957 24% 1,954 1,872 -4%
=========================== ====== ====== ====== ====== ==== ====== ====== ====
Conventional revenue
(EGP mn) 640 915 699 957 37% 1,339 1,872 40%
=========================== ====== ====== ====== ====== ==== ====== ====== ====
Covid-19-related revenue
(EGP mn) 540 - 75 - - 615 - -
Contribution to Consolidated Results
=======================================================================================
Conventional revenue 54% 100% 90% 100% 69% 100%
=========================== ====== ====== ====== ====== ==== ====== ====== ====
Covid-19-related revenue 46% - 10% - 31% -
--------------------------- ------ ------ ------ ------ ---- ------ ------ ----
Test Volume Analysis
Total tests (mn) 8.4 8.0 7.6 8.5 12% 16.0 16.5 3%
======================== ==== ===== ==== ===== ==== ===== ===== ====
Conventional tests
performed (mn) 7.1 8.0 7.4 8.5 13% 14.5 16.5 13%
======================== ==== ===== ==== ===== ==== ===== ===== ====
Total Covid-19-related
tests performed (mn) 1.3 - 0.2 - - 1.5 - -
------------------------ ---- ----- ---- ----- ---- ----- ----- ----
Contribution to Consolidated Results
============================================================================
Conventional tests
performed 85% 100% 97% 100% 91% 100%
======================== ==== ===== ==== ===== ==== ===== ===== ====
Total Covid-19-related
tests performed 15% - 3% - 9% -
------------------------ ---- ----- ---- ----- ---- ----- ----- ----
Revenue per Test Analysis
Total revenue per test
(EGP) 140 114 102 113 11% 122 114 -7%
========================== ==== ==== ==== ==== ==== ==== ==== ====
Conventional revenue
per test (EGP) 90 114 94 113 20% 92 114 24%
Covid-19-related revenue
per test (EGP) 431 - 454 - 422 - -
-------------------------- ---- ---- ---- ---- ---- ---- ---- ----
Revenue Analysis: Contribution by Patient Segment
Contract Segment (64% of Group revenue)
The Company's contract segment booked conventional revenues of EGP 1,193
million during 1H 2023, a 44% year-on-year increase from the EGP 827
million recorded one year prior. Conventional revenues at IDH's contract
segment were driven by increases in test volumes and average revenue
per conventional test, which increased 18% and 22% year-on-year (of
which 4% was related to the translation effect), respectively. During
the period, IDH recorded a notable increase in total tests per patient
at the segment, which reached a record 4.4 tests in 1H 2023 from 4.0
last year. Higher tests per patient were supported both by a post-Covid-19
patient mix normalisation coupled with the success of a new loyalty
programme introduced at the end of FY 2021.
Walk-in Segment (36% of Group revenue)
Meanwhile, IDH's walk-in segment reported conventional revenue growth
of 33% year-on-year during 1H 2023, booking revenues of EGP 679 million.
While test volumes remained relatively stable compared to the same period
of the previous year, declining 4% year-on-year, revenue growth was
entirely driven by increases in average revenue per conventional test,
which expanded 38% year-on-year to EGP 226 during 1H 2023 (of which
14% was related to the translation effect) from EGP 163 one year prior.
Similar to trends witnessed at the contract segment, total walk-in tests
per patient reached their highest value on record at 3.6 tests up impressively
from the 2.5 tests per patient recorded in 1H 2022.
Detailed Segment Performance Breakdown
Walk-in Segment Contract Segment Total
========================= ======================= ========================= =========================
1H22 1H23 Change 1H22 1H23 Change 1H22 1H23 Change
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Revenue (EGP mn) 857 679 -21% 1,097 1,193 8% 1,954 1,872 -4%
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Conventional Results
(EGP mn) 512 679 33% 827 1,193 44% 1,339 1,872 40%
Total Covid-19-related
revenue (EGP mn) 345 - - 270 - - 615 - -
Patients ('000) 1,513 833 -45% 3,027 3,084 2% 4,541 3,917 -14%
% of Patients 33% 21% 67% 79%
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Revenue per Patient
(EGP) 565 815 44% 363 387 7% 430 478 11%
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Tests ('000) 3,849 3,008 -22% 12,155 13,457 11% 16,004 16,465 3%
% of Tests 24% 18% 76% 82%
Conventional tests
('000) 3,135 3,008 -4% 11,412 13,457 18% 14,547 16,465 13%
Total Covid-19-related
tests ('000) 714 - - 744 - - 1,458 - -
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Revenue per Test
(EGP) 222 226 2% 90 89 -2% 122 114 -7%
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Conventional Revenue
per Test (EGP) 163 226 39% 72 89 23% 92 114 24%
========================= ====== ====== ======= ======= ======= ======= ======= ======= =======
Test per Patient 2.5 3.6 42% 4.0 4.4 9% 3.5 4.2 19%
------------------------- ------ ------ ------- ------- ------- ------- ------- ------- -------
Revenue Analysis: Contribution by Geography
Egypt (80.9% of Group revenue)
IDH's conventional business in Egypt continued delivering notable growth,
progressively picking up throughout the first six months of the year
and recording the strongest monthly revenue figures for the year in
May and June (once adjusting for the Eid-related slowdown). Revenues
have remained strong during July and August and the Company expects
the trend to continue heading further into the second half of the year.
More specifically, the Company recorded conventional revenue growth
of 33% year-on-year in 1H 2023, supported by simultaneous expansions
in test volumes and average revenue per conventional test, which grew
14% and 16% year-on-year, respectively. Total revenues from IDH's Egyptian
operations remained relatively unchanged, declining just 1% year-on-year
to EGP 1,514 million in 1H 2023.
On a quarterly basis, IDH recorded conventional revenues of EGP 783
million in Q2 2023, up a solid 32% year-on-year and 7% quarter-on-quarter.
Total revenues also expanded by 21% year-on-year as the impact of Covid-19-related
testing on the comparable three-month period of 2022 significantly declined
starting April.
Al-Borg Scan
IDH's fast-growing radiology venture maintained its growth trend throughout
the second quarter of 2023, recording revenues of EGP 63 million in
1H 2023, a 78% year-on-year increase. Revenue expansion was primarily
driven by increased average revenue per test, which grew 44% year-on-year
to EGP 807, and increased test volumes, which climbed 23% year-on-year
to 78 thousand tests during the six-month period. Al-Borg Scan has also
continued increasing its contribution to Egypt's top-line figure, constituting
4% of Egypt revenues during the first six months of 2023 versus only
2% in the same period of the previous year. To capitalize on the growing
demand for Al-Borg Scan's offering, IDH has, over the last two years,
launched four new branches taking the total to six as at 30 June 2023.
In the coming months, IDH plans to add an additional seventh branch
to its radiology venture in Egypt.
House Calls
Throughout the first six months of the year, IDH's house call service
in Egypt continued to make a remarkable contribution of 16% to total
revenues in the country. This continues to be well-above the service's
pre-pandemic contribution, further showcasing the segment's growth potential,
and the success of IDH's investment strategy which has seen it significantly
boost the service's capabilities since 2020.
Wayak
During the six-month period ending 30 June 2023, Wayak recorded 83 thousand
orders, a 29% year-on-year increase compared to 64 thousand in the same
six-month period of the previous year. Meanwhile, the venture's EBITDA
losses continued to narrow to record EGP 746 thousand compared to EBITDA
losses of EGP 1.7 million booked in the six-month period ending 30 June
2022. It is also worth noting that Wayak's EBITDA turned positive for
the months of May and June, a trend which IDH will look to maintain
heading into the second half of the year.
Detailed Egypt Performance Breakdown
Revenue Analysis
Q1 Q1 Q2 Q2 1H 1H
EGP mn 2022 2023 2022 2023 % 2022 2023 %
------------------------ ------ ------ ------ ------ ----
Total Revenue 879 731 645 783 21% 1,524 1,514 -1%
Conventional Revenue 549 731 591 783 32% 1,140 1,514 33%
Pathology Revenue 532 703 573 748 31% 1,105 1,451 31%
Radiology Revenue 17 28 19 35 89% 35 63 78%
Total Covid-19-related
Revenue 330 - 53 - 384 -
Contribution to Consolidated Results
Conventional revenue 62% 100% 92% 100% 75% 100%
Pathology Revenue 61% 96% 89% 96% 73% 96%
Radiology Revenue 1.9% 3.8% 2.9% 4.5% 2.3% 4.2%
Total Covid-19-related
revenue 38% - 8% - 25% -
------------------------ ------ ------ ------ ------ ---- ------ ------ ----
Test Volume Analysis
Total tests (mn) 7.3 7.3 6.9 7.8 13% 14.2 15.1 6%
======================== ==== ===== ==== ===== ==== ===== ===== ====
Conventional tests
performed (mn) 6.5 7.3 6.7 7.8 16% 13.2 15.1 14%
======================== ==== ===== ==== ===== ==== ===== ===== ====
Total Covid-19-related
tests performed (mn) 0.8 - 0.1 - 0.9 -
------------------------ ---- ----- ---- ----- ---- ----- ----- ----
Contribution to Consolidated Results
============================================================================
Conventional tests
performed 89% 100% 98% 100% 94% 100%
======================== ==== ===== ==== ===== ==== ===== ===== ====
Total Covid-19-related
tests performed 11% - 2% - 6% -
------------------------ ---- ----- ---- ----- ---- ----- ----- ----
Jordan (15.5% of Group revenue)
Similar to trends seen in Egypt, IDH witnessed a steady rise in revenues
throughout the first half of 2023, with Biolab recording its highest
monthly revenue figures for the year in May and June (adjusting for
the Eid-vacation slowdown). Overall, in 1H 2023, Biolab recorded conventional
year-on-year revenue growth of 9% in JOD terms, supported by a solid
8% year-on-year rise in conventional tests performed. In EGP terms,
conventional revenues posted an 88% year-on-year rise, in part boosted
by the translation effect which saw average revenue per conventional
test in EGP terms rise by 74% versus 1H 2022.
On a quarterly basis, Biolab recorded year-on-year conventional revenue
growth of 6% in JOD terms supported by a 4% year-on-year rise in conventional
test volumes for the quarter. In EGP terms, year-on-year conventional
revenue growth in Q2 2023 stood at 73% on the back of a significant
rise in average revenue per test following the devaluations of the
EGP.
Detailed Jordan Performance Breakdown
Revenue Analysis
Q1 Q1 Q2 Q2 1H 1H
EGP mn 2022 2023 2022 2023 % 2022 2023 %
----------------------------- ------ ------ ---- ------ -----
Total Revenue 280 144 106 146 38% 386 290 -25%
============================= ====== ====== ====== ====== ==== ====== ====== =====
Conventional Results 70 144 84 146 73% 155 290 88%
Total Covid-19-related
Revenues (PCR and
Antibody) 210 - 21 - 232 -
----------------------------- ------ ------ ------ ------ ---- ------ ------ -----
Contribution to Consolidated Results
Conventional Results 25% 100% 79% 100% 40% 100%
Total Covid-19-related
Revenue (PCR and Antibody) 75% - 20% - 60% -
----------------------------- ------ ------ ------ ------ ---- ------ ------ -----
Test Volume Analysis
Total tests (k) 991 582 603 598 -1% 1,594 1,180 -26%
======================== ==== ===== ==== ===== ==== ====== ====== =====
Conventional tests
performed (k) 519 582 572 598 4% 1,091 1,180 8%
======================== ==== ===== ==== ===== ==== ====== ====== =====
Total Covid-19-related
tests performed (k) 472 - 30 - 502 -
------------------------ ---- ----- ---- ----- ---- ------ ------ -----
Contribution to Consolidated Results
===============================================================================
Conventional tests
performed 52% 100% 95% 100% 68% 100%
======================== ==== ===== ==== ===== ==== ====== ====== =====
Total Covid-19-related
tests performed 48% - 5% - 32% -
------------------------ ---- ----- ---- ----- ---- ------ ------ -----
Nigeria (3.1% of revenue)
IDH's Nigerian subsidiary, Echo-Lab, recorded robust revenue growth
of 19% year-on-year in NGN terms, booking revenues of NGN 937 million
during the six-month period. In EGP terms, the Company booked revenues
of EGP 58 million, increasing 73% year-on-year from the EGP 33 million
booked during the same period of the previous year. Revenue growth for
the year was driven by a 71% increase in average revenue per test in
EGP terms and 18% in NGN terms. Test volumes, on the other hand, increased
a marginal 1% year-on-year to 136 thousand tests in 1H 2023.
Sudan (0.5% of revenue)
IDH's Sudanese operations recorded revenues of SDG 197 million, down
32% year-on-year in 1H 2023. In EGP terms, revenue declined 3% year-on-year
to reach EGP 10 million from EGP 10.5 million one year prior. The decline
in revenues during 1H 2023 was primarily a result of the halting of
operations in 16 of 18 branches in April of this year as a result of
the ongoing conflict in the country. The Company continues to monitor
the situation closely and will update the market should the situation
evolve.
Revenue Contribution by Country
Q1 Q1 Q2 Q2 1H 1H
2022 2023 2022 2023 % 2022 2023 Change
============================= ====== ====== ====== ====== ===== ====== ====== =======
Egypt Revenue (EGP
mn) 879 731 645 783 21% 1,524 1,514 -1%
Conventional (EGP
mn) 549 731 591 783 32% 1,140 1,514 33%
Pathology Revenue 532 703 573 748 31% 1,105 1,451 31%
Radiology Revenue 17 28 19 35 89% 35 63 78%
Covid-19-related
(EGP mn) 330 - 53 - 384 -
Egypt Contribution
to IDH Revenue 74.5% 79.9% 83.2% 81.8% 78.0% 80.1%
Jordan Revenue (EGP
mn) 280 144 106 146 38% 386 290 -25%
Conventional (EGP
mn) 70 144 84 146 73% 155 290 88%
Covid-19-related
(EGP mn) 210 - 21 - 232 -
Jordan Revenues (JOD
mn) 12.5 3.4 4.0 3.4 -16% 16.5 6.8 -59%
Conventional (JOD
mn) 3.0 3.4 3.2 3.4 6% 6.2 6.8 9%
Jordan Revenue Contribution
to IDH Revenue 23.7% 15.7% 13.7% 15.2% 19.8% 15.5%
Nigeria Revenue (EGP
mn) 15 31 19 27 44% 33 58 73%
Nigeria Revenue (NGN
mn) 371 468 416 469 13% 787 937 19%
Nigeria Contribution
to IDH Revenue 1.3% 3.4% 2.5% 2.8% 1.7% 3.1%
Sudan Revenue (EGP
mn) 5.7 8.8 4.8 1.4 -71% 10.5 10.2 -3%
Sudan Revenue (SDG
mn) 152 169 137 27 -80% 289 197 -32%
Sudan Contribution
to IDH Revenue 0.5% 1.0% 0.6% 0.1% 0.5% 0.5%
Average Exchange Rate
1H 2022 1H 2023 Change
========= ======== ======== =================
USD/EGP 17.6 30.7 74.4%
========= ======== ======== =================
JOD/EGP 24.7 42.8 73.4%
========= ======== ======== =================
NGN/EGP 0.04 0.06 26.2%
========= ======== ======== =================
SDG/EGP 0.04 0.05 42.0%
========= ======== ======== =================
Patients Served and Tests Performed by Country
1H 2022 1H 2023 Change
================================= ======== ======== =======
Egypt Patients Served (mn) 3.8 3.7 -3%
Egypt Tests Performed (mn) 14.2 15.1 6.5%
Conventional tests (mn) 13.2 15.1 14%
Covid-19-related tests (mn) 1.0 - -
================================= ======== ======== =======
Jordan Patients Served (k) 670 183 -73%
Jordan Tests Performed (k) 1,594 1,180 -26%
Conventional tests (k) 1,091 1,180 8%
Covid-19-related tests (k) 502 - -
Nigeria Patients Served (k) 70 69 -2%
Nigeria Tests Performed (k) 135 136 1%
Sudan Patients Served (k) 46 14 -69%
Sudan Tests Performed (k) 84 40 -52%
================================= ======== ======== =======
Total Patients Served (mn) 4.5 3.9 -14%
Total Tests Performed (mn) 16.0 16.5 3%
Branches by Country
30 June 2022 30 June 2023 Change
================ ============= ============= =============
Egypt 488 531 43
================ ============= ============= =============
Jordan 21 27 6
================ ============= ============= =============
Nigeria 12 12 -
================ ============= ============= =============
Sudan 17 18 1
================ ============= ============= =============
Total Branches 538 588 50
================ ============= ============= =============
-Cost of Sales
Cost of sales increased 8% year-on-year in the first six months of 2023,
to record EGP 1,214 million. As a percentage of revenues, cost of sales
increased seven percentage points year-on-year in the six-month period
ended 30 June 2023, to reach 64.9%. The year-on-year increase reflected
primarily higher salaries and wages, as well as partially increased
raw material expenses and higher direct depreciation booked in 1H 2023.
Cost of Sales Breakdown as a Percentage of Revenue 1H 2022 1H 2023
================================== ======== ========
Raw Materials 20.3% 21.5%
================================== ======== ========
Conventional raw material
costs as % of conventional
revenues 16.4% 21.5%
================================== ======== ========
Covid-19-related raw 29.6% -
material costs as % of
Covid-19-related revenues
================================== ======== ========
Wages & Salaries 16.8% 20.4%
================================== ======== ========
Depreciation & Amortisation 6.7% 9.4%
================================== ======== ========
Other Expenses 13.6% 13.5%
================================== ======== ========
Total 57.4% 64.9%
================================== ======== ========
Raw material costs (33% of consolidated cost of sales) was the largest
contributor to cost of sales during the period. Raw material costs recorded
EGP 402 million during 1H 2023, and amounted to 21% of total Group revenues.
During the period, the Company booked a rise in the average cost for
conventional test kits on the back of a weaker EGP and rising inflation
across its markets of operation. This saw conventional raw material
costs as a share of revenues reach 21.5% in 1H 2023, up five percentage
points year-on-year. It is important to note that the significant increase
in the cost of conventional test kits as a share of revenue is attributable
to a delay in the delivery of free test kits from IDH's main suppliers
during Q2 2023 as part of special arrangements to support the Company
during the ongoing turbulent times. The delivery of free test kits is
expected to normalise in the third quarter of the year.
Wages and salaries including employee share of profits (32% share of
consolidated cost of sales) was the second largest contributor to cost
of sales during 1H 2023, amounting to EGP 383 million in 1H 2023. During
the period, wages and salaries as a percentage of revenues stood at
20.4%, increasing from 16.8% in the same period of the previous year.
The year-on-year increase in direct wages and salaries is attributable
to new staff hires across IDH's newly launch branches, coupled with
higher than usual compensation increases for existing staff to compensate
for increased inflationary pressures in IDH's home market of Egypt.
Meanwhile, the year-on-year rise in NGN terms of Nigeria's salary and
wage expenses reflects an increase in USD-denominated compensation of
Echo-Lab's expat personnel on the back of a weaker Naira and rising
inflation.
Direct Wages and Salaries by Region 1H 2022 1H 2023
================== ======== ========
Egypt (EGP mn) 260 287
================== ======== ========
Jordan (EGP mn) 60 78
================== ======== ========
Jordan (JOD mn) 2 2
================== ======== ========
Nigeria (EGP mn) 8 16
================== ======== ========
Nigeria (NGN mn) 186 272
================== ======== ========
Sudan (EGP mn) 2 2
================== ======== ========
Sudan (SDG mn) 51 48
================== ======== ========
Direct depreciation and amortization costs (15% of consolidated cost
of sales) increased 34% year-on-year in 1H 2023 to EGP 176 million compared
to EGP 132 million one year prior. Increases in depreciation and amortization
expenses were primarily due to the expansion of Al-Borg Scan's branches
as well as the rollout of additional branches throughout the Company's
wider network. More specifically, depreciation booked by Al-Borg Scan's
branches contributed 28% of total direct depreciation in 1H 2023.
Other expenses (21% of consolidated cost of sales) during the first
half of 2023 recorded EGP 253 million, down 5% year-on-year from the
EGP 266 million recorded in 1H 2022. It is important to note that other
expenses booked in 1H 2022 had included EGP 63 million paid in concession
fees as part of Biolab's agreement with Queen Alia International Airport
and Aqaba Port to provide Covid-19-related testing during January and
February of last year. Excluding these concession fees, other expenses
increased by 25% year-on-year during 1H 2023, mainly on the back of
increases recorded in Egypt and Nigeria. The increase in Egypt primarily
reflects a change in the treatment of revenue-sharing hospital contracts
starting in Q2 2023, which saw revenue-sharing expenses in 1H 2023 rise
by 330% year-on-year, contributing to nearly half of other expenses
growth for the period. In Nigeria, higher gasoline prices and general
inflation were the main contributors to the increase in other expenses
for the period.
Gross Profit
The Company booked gross profit of EGP 658 million in 1H 2023, down
21% year-on-year from the high base of EGP 832 million posted during
1H 2022. Meanwhile, IDH's gross profit margin came in at 35% compared
to 43% in 1H 2022. Lower gross profitability during the period reflected
both the above-mentioned increase in direct salaries and wages and depreciation,
as well as an expected normalization of margins following the decline
in Covid-19-related testing.
On a quarterly basis, IDH booked gross profit of EGP 333 million, up
11% year-on-year from EGP 300 million in Q2 2022 when contributions
from the Company's Covid-19-related offering had already begun to decline.
IDH recorded a GPM of 35% in Q2 2023, down four percentage points year-on-year,
as gross profitability was impacted by rising inflation and a weaker
EGP. Meanwhile, IDH's GPM remained relatively stable compared to Q1
2023.
Selling, General and Administrative Expenses
IDH's SG&A outlays during 1H 2023 amounted to EGP 367 million, up 43%
year-on-year. As a percentage of revenues, SG&A outlays stood at 20%
in 1H 2023 versus 13% in 1H 2022. Increased SG&A expenses were mainly
driven by:
* Increases in wages and salaries, which expanded by
53% year-on-year to EGP 141 million during 1H 2023
primarily due to higher-than-usual annual adjustments
to employee compensation packages to support them
during the ongoing challenging period. Increased
wages and salaries also partially reflected an
increase in USD-denominated directors' compensation
and the addition of a board member in March 2022 (who
received compensation starting March 2022). Wages and
salaries as a share of revenue increased to 8% in 1H
2023 from 5% in 1H 2022.
* Increases in other expenses, which grew 59%
year-on-year to EGP 153 million in 1H 2023 due to the
increase of USD-denominated expenses (including
USD-denominated auditor fees) for the holding
company.
* One-off legal consultancy expenses related to the
termination of the Pakistan deal in the first quarter
of 2023.
Selling, General and Administrative Expenses 1H 2022 1H 2023 Change
=============================== ======== ======== =======
Wages & Salaries 92 141 53%
=============================== ======== ======== =======
Accounting Fees 18 38 111%
=============================== ======== ======== =======
Professional Services
Fees 18 32 78%
=============================== ======== ======== =======
Market - Advertisement
expenses 54 52 -4%
=============================== ======== ======== =======
Other Expenses 53 70 32%
=============================== ======== ======== =======
Depreciation & Amortisation 15 20 32%
=============================== ======== ======== =======
Travelling and transportation
expenses 7 14 100%
=============================== ======== ======== =======
Total 257 367 43%
=============================== ======== ======== =======
EBITDA
IDH posted EBITDA(11) of EGP 462 million in 1H 2023, down 35% year-on-year
from the figure reported in 1H 2022 when Covid-19-related testing has
significantly boosted results. The Company's EBITDA margin was 25% during
the six-month period, declining 12 points year-on-year on the back of
lower gross profitability as well as the 46% year-on-year increase in
SG&A outlays discussed above. It is worth highlighting that when controlling
for non-recurring items, such as a loss on expired Covid-19 kit inventory
(EGP 12 million), one-off legal reports (EGP 3 million), legal fees
related to the termination of the Pakistan agreement (EGP 8 million),
IDH would have recorded an EBITDA of EGP 483 million and yielded an
associated margin of 26%.
On a quarterly basis, the Company booked EBITDA of EGP 234 million in
Q2 2023, a 3% year-on-year decrease and with an associated margin of
24%.
(11) EBITDA is calculated as operating profit plus depreciation and
amortization. It is important to note that while in absolute terms the
EBITDA figure is identical when using IFRS or APM, its margin differs
between the two sets of performance indicators only for the comparable
period of 2022. Margins for Q1 2023 are identical across both IFRS and
APM.
EBITDA by Country
In Egypt, IDH's operations recorded an EBITDA of EGP 407 million in
1H 2023, down 35% from the figure recorded in 1H 2022 which had included
a notable contribution from Covid-19-related testing. EBITDA margin
recorded 27% in 1H 2023 versus 41% in the same period of the previous
year. Lower EBITDA profitability reflects a post-pandemic normalisation
in gross profits which declined 20% year-on-year coupled with a 40%
year-on-year increase in SG&A expenses.
Biolab, IDH's Jordanian subsidiary, recorded EBITDA in local currency
terms of JOD 1.6 million, declining 60% year-on-year from 1H 2022 when
Covid-19-related testing had significantly contributed to results. Biolab
recorded an EBITDA margin of 24% compared to 29% in the same period
of last year in local currency terms. In EGP terms, EBITDA declined
25% year-on-year to EGP 69 million. EBITDA profitability declined during
1H 2023 due to a 26% year-on-year decrease in gross profit and 48% year-on-year
increase in SG&A outlays during the period. It is worth highlighting
that SG&A expense increases partially reflect the translation effect
from the devaluation of the Egyptian Pound over the past year. In JOD
terms, SG&A expenses increased just 44% versus last year.
In Nigeria, IDH recorded an EBITDA loss of NGN 233 million in 1H 2023,
widening from NGN 80 million during the same period of last year. In
EGP terms, EBITDA losses widened to EGP 15 million in 1H 2023 from EGP
3.3 million in the same six-month period of 2022. The widening in EBITDA
losses for the period was primarily driven by lower gross profitability
in Nigeria. The rise in Echo-Lab's cost of sales has been driven by
higher gasoline and electricity prices and have continued to weigh down
on gross profitability since the start of the year.
In Sudan, IDH recorded EBITDA of SDG 24 million, well above the EBITDA
figure of SDG 4 million recorded in the same six months of 2022. In
EGP terms, Sudan's operations generated an EBITDA of EGP 1.2 million,
up from EGP 0.1 million in 1H 2022. Improved EBITDA profitability comes
despite the notable operational difficulties faced by IDH's Sudanese
operations. More specifically, 16 of IDH's 18 branches in the country
have been temporarily shut down since April due to the ongoing conflict.
Regional EBITDA in Local Currency Mn 1H 2022 1H 2023 Change
-------------------- ---- -------- -------- -------
Egypt EBITDA EGP 622 407 -35%
Margin 41% 27%
Jordan JOD 4.0 1.6 -60%
Margin 29% 24%
Nigeria NGN -80 -233 192%
Margin -10% -25%
Sudan SDG 4 24.1 494%
Margin 1% 12%
Interest Income / Expense
IDH's interest income during 1H 2023 stood at EGP 30 million, decreasing
60% year-on-year from the EGP 75 million booked during the same six-month
period of last year. Lower interest income during the period was mainly
due to the Company's lower cash balances as a result of record cash
dividends distributed during last year.
Interest expense(12) amounted to EGP 76 million during 1H 2023, up
18% year-on-year from EGP 64 million during 1H 3033. Increased interest
expenses were mainly driven by:
* Increased interest on lease liabilities related to
IFRS 16 due to the rollout of new branches.
* Higher interest expenses following the CBE decision
to increase rates by 1,000 bps since March 2022. It
is important to note that IDH's interest bearing debt
balance decreased to EGP 108 million as at 30 June
2023, from EGP 117 million at year-end 2022. During
the six-month period, 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. To finance
the settlement, IDH utilized a bridge loan facility,
with half the amount being funded internally, while
the other half (amounting to EGP 55 million) was
provided through a bridge loan by Ahly United Bank-
Egypt (AUBE). Interest expenses related to the AUBE
facility recorded EGP 12 million in 1H 2023. The
bridge loan was fully settled in Q2 2023.
Interest Expense Breakdown EGP mn 1H 2022 1H 2023 Change
===================================== ======== ======== =======
Interest on Lease Liabilities
(IFRS 16) 34.9 45.2 29%
===================================== ======== ======== =======
Interest Expenses on Leases 9.3 13.7 47%
===================================== ======== ======== =======
Interest Expenses on Borrowings(13) 5.2 11.6 123%
===================================== ======== ======== =======
Bank Charges 8.8 5.3 -39%
===================================== ======== ======== =======
Loan-related Expenses 5.9 - -
on IFC facility(14)
===================================== ======== ======== =======
Total Interest Expense 64.1 75.9 18%
===================================== ======== ======== =======
(12) Interest expenses on medium-term loans include EGP 12.0 related
to the Group's facility with Ahli United Bank Egypt (AUBE). Meanwhile,
the Group's facility with the Commercial International Bank (CIB) was
fully repaid as of 5 April 2022.
(13) Interest expenses on medium-term loans include EGP 12.0 related
to the Group's facility with Ahli United Bank Egypt (AUBE). Meanwhile,
the Group's facility with the Commercial International Bank (CIB) was
fully repaid as of 5 April 2022.
(14) Loan-related expenses on IFC facility represents commitment fees
on the facility granted by IFC and Mashreq with a total value of USD
60 million. The facility was cancelled in May 2023.
Foreign Exchange
The Company recorded a foreign exchange gain of EGP 102 million during
the six-month period, a 47% year-on-year increase partially reflecting
intercompany balances revaluation.
Taxation
Tax expenses, which include income and deferred tax, amounted to EGP
98 million during 1H 2023, a 53% year-on-year decrease. The Company's
effective tax rate came in at 32%, unchanged versus the same six-month
period of the previous year. It is important to highlight that there
is no tax payable for IDH's two holding-level companies. Meanwhile,
tax was paid on profits resulting from the Group's operating subsidiaries
(Egypt 27.5%, Jordan 36.6%, Nigeria 0.2%, Sudan 11.4%).
Taxation Breakdown by Region EGP Mn 1H 2022 1H 2023 Change
==================== ======== ======== =======
Egypt 196.0 91.1 -53%
==================== ======== ======== =======
Jordan 14.6 6.6 -55%
==================== ======== ======== =======
Nigeria -0.2 -0.1 -63%
==================== ======== ======== =======
Sudan 0.1 0.5 350%
==================== ======== ======== =======
Total Tax Expenses 210.5 98.1 -53%
==================== ======== ======== =======
Net Profit
IDH's net profit in 1H 2023 came in at EGP 211 million, down 52% year-on-year.
Meanwhile, the Company's net profit margin recorded 11%, down 11 percentage
points from 22% in the same six-month period last year. On a three-month
basis, the Company posted net profit of EGP 43 million, down 66% year-on-year.
IDH's bottom-line on both a year-to-date and quarterly basis was impacted
by a non-recurring expense of EGP 12 million related to contributions
owed to the Egyptian government vocational training fund for the previous
five-year period. Controlling for this, IDH would have booked a net
profit of EGP 223 million in 1H 2023 and EGP 55 million in Q2 2023.
The EGP 12 million non-recurring expense is in accordance with article
134 of labour law on Vocational Guidance and Training issued by the
Egyptian Government in 2003. In accordance with the law, IDH's Egyptian
operations are required to provide 1% of net profits each year into
a training fund. Integrated Diagnostics Holdings plc has taken legal
advice and considered market practices in Egypt relating to the law,
and more specifically whether vocational training courses undertaken
by the Company's Egyptian subsidiaries suggest that obligations have
been satisfied by in-house training programmes provided by those entities.
Since the issue of the law, IDH's Egyptian subsidiaries have not been
requested by the government to pay, nor have they voluntarily paid,
any amounts into the external training fund.
ii. Balance Sheet Analysis
Assets
Property, Plant and Equipment
The Company recorded gross property, plant and equipment (PPE) of EGP
2,411 million as at 30 June 2023, increasing from EGP 2,208 million
at year-end 2022. The rise in CAPEX as a share of revenues during 1H
2023 was driven mainly by the addition of new branches to IDH's network
(contributing 9% of revenues), while the rest is attributable to the
translation effect related to Jordan, Sudan, and Nigeria (contributing
2% of revenues).
Total CAPEX Addition Breakdown - 1H 2023 EGP mn % of Revenue
================================= ======= =============
Leasehold Improvements/new
branches 154.9 8.3%
================================= ======= =============
Al-Borg Scan Expansion 14.1 0.8%
================================= ======= =============
Total CAPEX Additions Excluding
Translation 169.5 9.1%
================================= ======= =============
Translation Effect 34.3 1.8%
================================= ======= =============
Total CAPEX Additions 203.4 10.9%
================================= ======= =============
Accounts Receivable and Provisions
Accounts receivable as at 30 June 2023 stood at EGP 532 million, increasing
35% year-to-date from EGP 395 million. IDH's receivables' Days on Hand
(DoH) came in at 136 days, increasing from 124 days as at 31 December
2022.
Provisions for doubtful accounts recorded EGP 23 million in 1H 2023,
up from EGP 16 million in the same period of the previous year. Increased
provisions and receivable balance during the six-month period are mainly
attributable to slower collection rates as a result of sustained economic
downturns in IDH's geographies and, mainly, in the Company's home market
of Egypt.
Inventory
IDH's inventory balance as of the end of the first six months of 2023
recorded EGP 361 million, increasing from EGP 265 million as of the
end of 2022. Meanwhile, Days Inventory Outstanding (DIO) came in at
148 days, up from 127 days on a year-to-date basis. Increases in DIO
were mainly driven by management strategy to accumulate inventory as
a hedge against inflation over the past year.
Cash and Net Debt/Cash
Cash balances stood at EGP 666 million as of 30 June 2023, declining
from EGP 816 million as of year-end 2022. The decline in cash balances
is primarily related to the aforementioned decision for the early repayment
of IDH's contractual obligation of USD 5.7 million (equivalent to EGP
110 million) to reduce exposure to foreign currency risk using internal
resources as well as a bridge loan facility provided by AUBE, where
the latter was also fully settled in Q2 2023.
EGP million 31 Dec 30 Jun
2022 2023
================== ======= =======
T-Bills 296 238
================== ======= =======
Time Deposits 123 95
================== ======= =======
Current Accounts 378 313
================== ======= =======
Cash on Hand 18 21
================== ======= =======
Total 816 666
================== ======= =======
IDH's net debt(15) balance came in at EGP 482 million as of the end
of 1H 2023, increasing 29% year-to-date from EGP 374 million as of
year-end 2022.
(15) 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.
EGP million 31 Dec 30 Jun 31 Dec
2022 2023 2021
========================================= ======= ======= =======
Cash and Financial Assets at Amortised
Cost(16) 816 666 2,350
========================================= ======= ======= =======
Lease Liabilities Property (727) (777) 106
========================================= ======= ======= =======
Total Financial Liabilities (Short-term
and Long-term) (335) (249)
========================================= ======= ======= =======
Interest Bearing Debt ("Medium
Term Loans") (127) (122)
========================================= ======= ======= =======
Net Cash/(debt) Balance (374) (482) 1,483
========================================= ======= ======= =======
Note: Interest Bearing Debt includes accrued interest for each period.
Lease liabilities and financial obligations on property came in at
EGP 777 million as at 31 June 2023, up from EGP 727 million as at year-end
2022. Higher lease liabilities were driven by the launch of 50 new
branches across IDH's branch network in the twelve months to 30 June
2023.
Meanwhile, financial obligations related to equipment recorded EGP
249 million as at the end of 1H 2023, down from EGP 335 million as
at the end of 2022. Declining financial obligations related to equipment
is a result of the early repayment of IDH's obligations with General
Electric (GE) as part of the Company's efforts to hedge against foreign
currency risk. Half of the settlement was financed internally by the
Company, while the other half was financed through a bridge loan facility
from AUBE.
Finally, interest bearing debt(17) recorded EGP 108 million, down from
EGP 117 million as at year-end 2022. The decrease is mainly attributable
to the repayment of EGP 8.5 million in accordance with Al-Borg Scan's
medium term loan repayment schedule.
Liabilities
Accounts Payable(18)
Accounts payable stood at EGP 377 million as at the end of 1H 2023,
increasing from EGP 270 million six months earlier. In parallel, IDH's
Days Payable Outstanding (DPO) came in at 153 days, up from 151 days
as at year-end 2022.
Put Option
The put option current liability is related to 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 7 times Biolab's LTM EBITDA minus net debt. Biolab's put option
liability decreased following the significant decline in the venture's
EBITDA for the period.
The put option non-current liability is related to 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).
(16) As outlined in Note 18 of IDH's Consolidated Financial Statements,
some term deposits and treasury bills cannot be accessed for over 3
months and are therefore not treated as cash. Term deposits which cannot
be accessed for over 3 months stood at EGP 113 million in Q1 2023,
versus EGP 123 million as at year-end 2022. Meanwhile, treasury bills
not accessible for over 3 months stood at EGP 342 million in Q1 2023,
up from EGP 296 million in FY 2022.
(17) IDH's interest bearing debt as at 31 March 2023 included EGP
172 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.
(18) Accounts payable is calculated based on average payables at the
end of each period.
-End-
INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH"
AND ITS SUBSIDIARIES
Consolidated Financial Statements
for the six-month period ended 30 June 2023
Consolidated statement of financial position as at 30 June
2023
Notes 31 Mar 31 Dec
2023 2022
EGP'000 EGP'000
-------------------------------------------------- -------------------------- ----------- -----------
Assets
Non-current assets
Property, plant and equipment 4 1,392,293 1,326,262
Intangible assets and goodwill 5 1,723,582 1,703,636
Right of use assets 6 653,008 622,975
Financial assets at fair value through
profit and loss 7 - 18,064
Total non-current assets 3,768,883 3,670,937
Current assets
Inventories 360,847 265,459
Trade and other receivables 8 651,528 543,887
Financial assets at amortized cost 9 189,931 167,404
Current financial assets at fair value
through profit and loss 7 23,590 -
Cash and cash equivalents 10 475,580 648,512
----------- -----------
Total current assets 1,701,476 1,625,262
----------- -----------
Total assets 5,470,359 5,296,199
=========== ===========
Equity
Share capital 1,072,500 1,072,500
Share premium reserve 1,027,706 1,027,706
Capital reserves (314,310) (314,310)
Legal reserve 51,641 51,641
Put option reserve (286,152) (490,695)
Translation reserve (84,765) 24,173
Retained earnings 1,006,671 783,081
Equity attributable to the owners
of the Company 2,473,291 2,154,096
Non-controlling interests 379,132 292,885
----------- -----------
Total equity 2,852,423 2,446,981
----------- -----------
Non-current liabilities
Provisions 16,163 3,519
Non-current put option liability 12 - 51,000
Borrowings 13 79,560 93,751
Other financial obligations 14 873,998 914,191
Deferred tax liabilities 18-C 332,953 321,732
Total non-current liabilities 1,302,674 1,384,193
Current liabilities
Trade and other payables 11 766,773 701,095
Other financial obligations 14 152,159 148,705
Current put option liability 12 286,152 439,695
Borrowings 13 28,384 22,675
Current tax liabilities 81,794 152,855
Total current liabilities 1,315,262 1,465,025
Total liabilities 2,617,936 2,849,218
----------- -----------
Total equity and liabilities 5,470,359 5,296,199
=========== ===========
The accompanying notes form an integral part of these consolidated
financial statements.
These condensed consolidated interim financial information
were approved and authorized for issue by the Board of
Directors and signed on their behalf on 30 August 2023
by:
Dr. Hend El Sherbini Hussein Choucri
Chief Executive Officer Independent Non-Executive
Director
Consolidated income statement for the quarter and six-month
periods ended 30 June 2023
For the three months For the six months
period period
ended 30 June ended 30 June
Notes 2023 2022 2023 2022
EGP'000 EGP'000 EGP'000 EGP'000
----------------------------- ------ ------------ ------------- ------------- -------------
Revenue 21 956,651 773,586 1,871,942 1,954,065
Cost of sales (623,291) (473,402) (1,214,008) (1,122,195)
Gross profit 333,360 300,184 657,934 831,870
Marketing and advertising
expenses (49,178) (51,804) (112,473) (92,568)
Administrative expenses 16 (127,857) (77,892) (254,340) (164,192)
Impairment loss on
trade and other receivable (12,586) (8,980) (23,269) (16,158)
Other income (7,260) 4,553 (2,563) 3,471
Operating profit 136,479 166,061 265,289 562,423
------------ ------------- ------------- -------------
Non-operating expense (12,200) - (12,200) -
Finance costs 17 (33,084) (31,087) (75,879) (64,147)
Finance income 17 7,746 43,247 132,234 151,292
Net finance cost (25,338) 12,160 56,355 87,145
------------ ------------- ------------- -------------
Profit before tax 98,941 178,221 309,444 649,568
============ ============= ============= =============
Income tax expense 18-B (56,277) (53,302) (98,394) (210,516)
Profit for the period 42,664 124,919 211,050 439,052
============ ============= ============= =============
Profit attributed
to:
Equity holders of the
parent 50,681 125,611 223,590 422,220
Non-controlling interests (8,017) (692) (12,540) 16,832
42,664 124,919 211,050 439,052
============ ============= ============= =============
Earnings per share
(expressed in EGP):
Basic and diluted earnings
per share 20 0.08 0.21 0.37 0.70
------------ ------------- ------------- -------------
The accompanying notes form an integral part of these condensed
consolidated interim financial information.
Consolidated statement of comprehensive income/(expenses) for
the quarter and six-month periods ended 30 June 2023
For the three For the six months
months period ended period ended 30
30 June June
2023 2022 2023 2022
EGP'000 EGP'000 EGP'000 EGP'000
------------------------------------- ------------ --------- ---------- ---------
Net profit 42,664 124,919 211,050 439,052
Items that may be reclassified
to profit or loss:
Exchange difference on translation
of foreign operations (42,604) 25,983 (10,151) 103,291
Other comprehensive income / (Loss)
for the period net of tax (42,604) 25,983 (10,151) 103,291
------------ --------- ---------- ---------
Total comprehensive income for
the period 60 150,902 200,899 542,343
============ ========= ========== =========
Attributed to:
Equity holders of the parent 27,642 138,135 114,652 448,685
Non-controlling interests (27,582) 12,767 86,247 93,658
60 150,902 200,899 542,343
============ ========= ========== =========
The accompanying notes form an integral part of these condensed
consolidated interim financial information.
Consolidated statement of cash flows for the six-month period
ended 30 June 2023
30 June 30 June
Notes 2023 2022
EGP'000 EGP'000
----------------------------------------------- ------ ----------- -----------
Cash flows from operating activities
Profit for the period before tax 309,444 649,568
Adjustments
Depreciation of property, plant and equipment 126,755 95,184
Depreciation of right of use assets 65,632 48,215
Amortisation of intangible assets 3,872 3,439
Unrealised foreign currency exchange (gains)
losses 17 (102,159) (69,378)
Interest income 17 (30,075) (75,443)
Interest expense 17 70,496 55,342
Bank Charges 5,383 8,805
Loss/(Gain) on disposal of Property, plant
and equipment (603) 523
Impairment in trade and other receivables 23,269 16,158
Equity settled financial assets at fair
value (5,526) (2,548)
ROU Asset/Lease Termination (348) (408)
Hyperinflation (gains) losses 17 - (6,471)
Change in Provisions 12,644 (380)
Change in Inventories (90,933) (15,888)
Change in trade and other receivables (103,219) (81,073)
Change in trade and other payables 33,226 (85,084)
Cash generated from operating activities
before income tax payment 317,858 540,562
----------- -----------
Tax paid during period (157,734) (506,375)
Net cash generated from operating activities 160,124 34,187
----------- -----------
Cash flows from investing activities
Interest received on financial asset at
amortised cost 30,494 25,224
Payments for the purchase of financial
assets at amortized cost (150,423) (309,952)
Proceeds for the sale of financial assets
at amortized cost 138,815 1,266,048
Payments for acquisition of property,
plant and equipment 4 (164,174) (143,424)
Payments for acquisition of intangible
assets 5 (1,401) (1,505)
Proceeds from sale of Property, plant
and equipment 1,874 5,999
Net cash flows generated (used in) from
investing activities (144,815) 842,390
----------- -----------
Cash flows from financing activities
Proceeds from borrowings 54,936 -
Repayments of borrowings (63,418) (13,238)
Payment of finance lease liabilities (67,735) (58,276)
Dividends paid - (88,766)
Interest paid (5,383) (8,805)
Bank charge paid (161,410) (17,239)
Net cash flows used in financing activities (243,010) (186,324)
----------- -----------
Net increase in cash and cash equivalent (227,701) 690,253
Cash and cash equivalents at the beginning
of the year 648,512 891,451
Effect of exchange rate 54,769 85,920
Cash and cash equivalent at the end of
the period 10 475,580 1,667,624
=========== ===========
Non-cash investing and financing activities disclosed in other
notes are:
-- Acquisition of right-of-use assets - note 6
-- Property plant and equipment - note 4
-- Put option liability - note 12
The accompanying notes form an integral part of these condensed
consolidated interim financial information.
Consolidated statement of changes in equity for the six-month
period ended 30 June 2023
Attributable to owners of the Parent
------------------------------------------------------------------------------------------------------------------------------------------
EGP '000 Share Share Capital Legal Put Translation Retained Total Non-controlling Total
capital premium reserve reserve* option reserve earnings attributable interests equity
reserve reserve to the
owners
of the
Parent
---------------- ----------- ----------- ----------- ---------------- -------------
At 1 January
2023 1,072,500 1,027,706 (314,310) 51,641 (490,695) 24,173 783,081 2,154,096 292,885 2,446,981
----------- ----------- ----------- --------- ----------- ------------ ------------- ------------- ---------------- -------------
Profit for
the period - - - - - - 223,590 223,590 (12,540) 211,050
Other
comprehensive
income for
the period - - - - - (108,938) - (108,938) 98,787 (10,151)
Total
comprehensive
income at
30 June 2023 - - - - - (108,938) 223,590 114,652 86,247 200,899
----------- ----------- ----------- --------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with owners
of the Company
Contributions
and
distributions
Movement
in put option
liabilities - - - - 204,543 - - 204,543 - 204,543
Total
contributions
and
distributions - - - - 204,543 - - 204,543 - 204,543
----------- ----------- ----------- --------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance
at 30 June
2023 1,072,500 1,027,706 (314,310) 51,641 (286,152) (84,765) 1,006,671 2,473,291 379,132 2,852,423
=========== =========== =========== ========= =========== ============ ============= ============= ================ =============
At 1 January
2022 1,072,500 1,027,706 (314,310) 51,641 (956,397) 150,730 1,550,976 2,582,846 211,513 2,794,359
----------- ----------- ----------- --------- ----------- ------------ ------------- ------------- ---------------- -------------
Profit for
the period - - - - - - 422,220 422,220 16,832 439,052
Other
comprehensive
income for
the period - - - - - 26,465 - 26,465 76,826 103,291
Total
comprehensive
income at
30 June 2022 - - - - - 26,465 422,220 448,685 93,658 542,343
----------- ----------- ----------- --------- ----------- ------------ ------------- ------------- ---------------- -------------
Transactions
with owners
of the Company
Contributions
and
distributions
Dividends - - - - - - (1,304,805) (1,304,805) (106,947) (1,411,752)
Movement
in put option
liabilities - - - - 19,501 - - 19,501 - 19,501
Impact of
hyperinflation - - - - - - (4,705) (4,705) 1,020 (3,685)
Total
contributions
and
distributions - - - - 19,501 - (1,309,510) (1,290,009) (105,927) (1,395,936)
----------- ----------- ----------- --------- ----------- ------------ ------------- ------------- ---------------- -------------
Balance
at 30 June
2022 1,072,500 1,027,706 (314,310) 51,641 (936,896) 177,195 663,686 1,741,522 199,244 1,940,766
=========== =========== =========== ========= =========== ============ ============= ============= ================ =============
*Under Egyptian Law, each subsidiary in Egypt must set aside at
least 5% of its annual net profit into a legal reserve until such
time that this represents 50% of each subsidiary's issued capital.
This reserve is not distributable to the owners of the Company.
The accompanying notes form an integral part of these condensed
consolidated interim financial information.
(In the notes all amounts are shown in Egyptian Pounds "EGP'000"
unless otherwise stated)
1. Reporting entity
Integrated Diagnostics Holdings plc "IDH" or "the Company" is a
Company which was incorporated in Jersey on 4 December 2014 and
established according to the provisions of the Companies (Jersey)
Law 1991 under Registered No. 117257. These condensed consolidated
interim financial information as at and for the six months ended 30
June 2023 comprise the Company and its subsidiaries (together
referred as the 'Group'). The Company is a dually listed entity, in
both London Stock Exchange (since 2015) and in the Egyptian
Exchange (during May 2021).
The principal activities of the Company and its subsidiaries
(together "The Group") include investments in all types of the
healthcare field of medical diagnostics (the key activities are
pathology and Radiology related tests), either through acquisitions
of related business in different jurisdictions or through expanding
the acquired investments they have. The key jurisdictions that the
Group operates are in Egypt, Jordan, Nigeria and Sudan.
The Group's financial year starts on 1 January and ends on 31
December of each year.
These condensed consolidated interim financial information were
approved for issue by the Directors of the Company on 30 August
2023.
2. Basis of preparation
A) Statement of compliance
These condensed consolidated interim financial information have
been prepared as per IAS 34 'Interim Financial Reporting' (As
adopted by the IASB). As the accounting policies adopted are
consistent with those of the previous financial year ended 31
December 2022 and corresponding interim reporting period.
These condensed consolidated interim financial information do
not include all the information and disclosures in the annual
consolidated financial Statement, and should be read in conjunction
with the financial Statement published as at and for the year ended
31 December 2022 which is available at www.idhcorp.com ,. In
addition, results of the six-month period ended 30 June 2023 are
not necessary indicative for the results that may be expected for
the financial year ending 31 December 2023.
B) Basis of measurement
The condensed consolidated interim financial information has
been prepared on the historical cost basis except where adopted
IFRS mandates that fair value accounting is required which is
related to the financial assets and liabilities measured at fair
value.
C) Functional and presentation currency
These condensed consolidated interim financial information is
presented in Egyptian Pounds (EGP'000). The functional currency of
the majority of the Group's entities is the Egyptian Pound (EGP)
and is the currency of the primary economic environment in which
the Group operates.
The Group also operates in Jordan, Sudan and Nigeria and the
functional currencies of those foreign operations are the local
currencies of those respective territories, however due to the size
of these operations, there is no significant impact on the
functional currency of the Group, which is the Egyptian Pound
(EGP).
3. Significant accounting policies
In preparing these condensed consolidated interim financial
information, the significant judgments made by the management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that were applied to
the consolidated financial information for the year ended 31
December 2022."The preparation of these condensed consolidated
interim financial information requires management to make
judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets,
liabilities, income and expense. Actual results may differ from
these estimates. Information about significant areas of estimation
uncertainty and critical judgement in applying accounting policies
that have the most significant effect on the amount recognised in
the condensed consolidated interim financial statement is described
in note 3.2 of the annual consolidated financial information
published for the year ended 31 December 2022. In preparing these
condensed consolidated interim financial information, the
significant judgments made by the management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that were applied to the
consolidated financial information for the year ended 31 December
2022".
4. Property, plant and equipment
Medical,
electric
&
information Fixtures, Project
Land & system Leasehold fittings & under Payment on
buildings equipment improvements vehicles construction account Total
-------------- ------------- -------------- ------------- ------------- ------------- ----------
Cost
At 1 January
2023 426,961 1,111,867 507,442 133,195 28,589 10,614 2,218,668
Additions 8,554 64,416 35,237 14,783 50,162 432 173,584
Disposals - (2,578) (317) (1,192) - - (4,087)
Exchange
differences 2,278 5,398 20,320 6,266 23 - 34,285
Transfers - - 15,276 - (15,276) - -
-------------- ------------- -------------- ------------- ------------- ------------- ----------
At 30 June
2023 437,793 1,179,103 577,958 153,052 63,498 11,046 2,422,450
-------------- ------------- -------------- ------------- ------------- ------------- ----------
Depreciation
At 1 January
2023 61,578 513,869 261,705 55,254 - 892,406
Depreciation
for the
period 3,548 75,350 39,950 7,907 - - 126,755
Disposals - (1,643) (262) (911) - - (2,816)
Exchange
differences 568 5,053 7,006 1,185 - - 13,812
-------------- ------------- -------------- ------------- ------------- ------------- ----------
At 30 June
2023 65,694 592,629 308,399 63,435 - - 1,030,157
-------------- ------------- -------------- ------------- ------------- ------------- ----------
Net book
value at 30
June 372,099 586,474 269,559 89,617 63,498 11,046 1,392,293
============== ============= ============== ============= ============= ============= ==========
At 31
December
2022 365,383 597,998 245,737 77,941 28,589 10,614 1,326,262
============== ============= ============== ============= ============= ============= ==========
5. Intangible assets and goodwill
Intangible assets represent goodwill acquired through business
combinations and brand names.
Goodwill Brand name Software Total
---------- ----------- --------- ----------
Cost
Balance at 1 January 2023 1,291,823 395,551 92,836 1,780,210
Additions - - 1401 1,401
Effect of movements in exchange rates 13,176 7,315 3,908 24,399
---------- ----------- --------- ----------
Balance at 30 June 2023 1,304,999 402,866 98,145 1,806,010
---------- ----------- --------- ----------
Amortisation and impairment
Balance at 1 January 2023 6,373 381 69,820 76,574
Amortisation - - 3,872 3,87 2
Effect of movements in exchange rates 86 12 1,884 1,98 2
---------- ----------- --------- ----------
Balance at 30 June 2023 6,459 393 75,576 82,428
---------- ----------- --------- ----------
Carrying amount
Balance at 30 June 2023 1,298,540 402,473 22,569 1,723,582
========== =========== ========= ==========
Balance at 31 December 2022 1,285,450 395,170 23,016 1,703,636
========== =========== ========= ==========
Goodwill impairment reviews are undertaken annually or more
frequently if events or changes in circumstances indicate a
potential impairment. No indicators of impairment have been
identified during the three months ended 30 June 2023.
6. Right-of-use assets
30 June 2023 31 December 2022
------------- -----------------
Balance at 1 January 622,975 462,432
Addition for the period / year 60,074 214,846
Depreciation charge for the period / year (65,632) (103,099)
Terminated contracts (4,246) (13,564)
Exchange differences 39,837 62,360
------------- -----------------
Balance 653,008 622,975
============= =================
7. Financial asset at fair value through profit and loss
30 June 2023 31 December 2022
------------- -----------------
Non-current equity i nvestments - 18,064
Current equity i nvestments 23,590 -
-------------
23,590 18,064
============= =================
* On August 17, 2017, Almakhbariyoun AL Arab (seller) has signed
IT purchase Agreement with JSC Mega Lab (Buyer) to transfer and
install the Laboratory Information Management System (LIMS) for a
purchase price amounted to USD 400 000, which will be in the form
of 10% equity stake in JSC Mega Lab. In case the valuation of the
project is less or more than USD 4,000,000, the seller stake will
be adjusted accordingly, in a way that the seller equity stake
shall not fall below 5% of JSC Mega Lab.
- Ownership percentage in JSC Mega Lab at the transaction date
on April 8, 2019, and as of June 30, 2023, was 8.25%.
- On April 8, 2019, Al Mokhabariyoun Al Arab (Biolab) has signed
a Shareholder Agreement with JSC Mega Lab and JSC Georgia
Healthcare Group (CHG), whereas, BioLab Shall have a put option,
exercisable within 12 months immediately after the expiration of
five(5) year period from the signing date, These assets have
therefore been reclassified as current assets in the financial
information as of June 30, 2023, which allows BioLab stake to be
bought out by CHG at a price of the equity value being USD 400,000
plus 15% annual Interred Rate of Return (IRR).
- In case the Management Agreement or the Purchase Agreement
and/or the Service level Agreement is terminated/cancelled within 6
months period from the date of such termination/cancellation, CHG
shall have a call option, which allows the CHG to purchase Biolab's
Strake in JSC Megalab having value of USD 400,000.00 plus 20%
annual Interred Rate of Return (IRR).
- If JCI accreditation is not obtained, immediately after the
expiration of the 12 months period, CHG shall have a call option
(the Accreditation Call option), exercisable within 6 months
period, allowing CHG to purchase BioLab's Shares in JSC Mega Lab at
a price of the equity value of USD 400,00.00 plus the 20% annual
IRR.
- After 12 months from the date of the put option period
expiration, CHG to purchase Biolab's Stake in JSC Megalab having
value of USD 400,000 plus higher of 20% annual IRR or 6X EV/EBITDA
(of the financial year immediately preceding the call option
exercise date).
8. Trade and other receivables
30 June 2023 31 December 2022
------------- -----------------
Trade receivables - net 532,482 395,220
Prepayments 41,247 34,081
Due from related parties note (15) 4,366 5,930
Other receivables 71,559 106,363
Accrued revenue 1,874 2,293
-------------
651,528 543,887
============= =================
9. Financial assets at amortised cost
30 June 2023 31 December 2022
------------- -----------------
Term deposits (more than 3 months) 47,977 60,200
Treasury bills (more than 3 months) 141,954 107,204
189,931 167,404
============= =================
The maturity date of the treasury bills and Fixed-term deposits
are between 3-12 months and have average interest rates of EGP, and
JOD 21.75% and 5.50% respectively.
10. Cash and cash equivalents
30 June 2023 31 December 022
------------- ----------------
Cash at banks and on hand 333,201 399,957
Treasury bills (less than 3 months) 95,611 185,513
Term deposits (less than 3 months) 46,768 63,042
475,580 648,512
============= ================
11. Trade and other payables
30 June 2023 31 December 2022
------------- -----------------
Trade payable 377,453 269,782
Accrued expenses 185,930 241,060
Due to related parties note (15) 25,242 25,058
Other payables 122,602 98,204
Deferred revenue 47,192 60,948
Accrued finance cost 8,354 6,043
766,773 701,095
============= =================
12. Put option liability
30 June 2023 31 December 2022
------------- -----------------
Current put option - Biolab Jordan 249,947 439,695
Current put option - Eagle Eye-Echo scan 36,205 -
------------- -----------------
286,152 490,695
============= =================
30 June 2023 31 December 2022
-------------- -----------------
Non-current put option - Eagle Eye-Echo scan - 51,000
--------------- -----------------
- 51,000
=============== =================
Put option - Biolab Jordan
The accounting policy for put options after initial recognition
is to recognise all changes in the carrying value of the put option
liability within equity.
Through the historic acquisitions of Makhbariyoun Al Arab the
Group entered into separate put option arrangements to purchase the
remaining equity interests from the vendors at of a subsequent
date. At acquisition, a put option liability has been recognised at
the net present value of the exercise price of the option.
The option is calculated at seven times EBITDA of the last 12
months minus Net Debt and its exercisable in whole starting the
fifth anniversary of completion of the original purchase agreement,
which fell due in June 2016. The vendor has not exercised this
right at 30 June 2023. It is important to note that the put option
liability is treated as current as it could be exercised at any
time by the NCI.
However, based on discussions and ongoing business relationship,
there is no expectation that this will happen in next 18 months.
The option has no expiry date.
Put option - Eagle Eye-Echo scan
According to the definitive agreements signed on 15 January 2018
between Dynasty Group Holdings Limited and the International
Finance Corporation (IFC) related to the Eagle Eye-Echo scan
transaction, IFC has the option to put it is shares to Dynasty in
year 2024. The put option price will be calculated on the basis of
the fair market value determined by an independent valuator. This
commitment has been reclassified as a working obligation as the put
option ends within one year of the Group's financial position on
June 30, 2023.
13. Loans and borrowings
Currency Nominal interest rate Maturity 30 June 2023 31 December 2022
---------- ----------------------- ----------------- ------------- -----------------
AUB - Bank EGP CBE corridor rate+1% 26 January 2027 107,944 116,426
------------- -----------------
107,944 116,426
============= =================
Amount held as:
Current liability 28,384 22,675
Non- current liability 79,560 93,751
------------- -----------------
107,944 116,426
============= =================
A) In July 2018, AL-Borg lab, one of IDH subsidiaries, was
granted a medium term loan amounting to EGP 130.5m from Ahli United
Bank "AUB Egypt" to finance the investment cost related to the
expansion into the radiology segment. As at 30 June 2023 only EGP
108 M had been drawn down from the total facility available with
8.5 M had been repaid. Loan withdrawal availability period was
extended till July 2023 and the loan will be fully repaid by
January 2027.
The loan contains the following financial covenants which if
breached will mean the loan is repayable on demand:
1. The financial leverage shall not exceed 0.7 throughout the period of the loan
" Financial leverage ": total bank debt divided by net
equity.
2. The debt service ratios (DSR) shall not be less than 1.35 starting 2020
"Debt service ratio": cash operating profit after tax plus
depreciation for the financial year less annual maintenance on
machinery and equipment adding cash balance (cash and cash
equivalent) divided by total financial payments.
"Cash operating profit": Operating profit after tax, interest
expense, depreciation and amortisation, is calculated as follows:
Net income after tax and unusual items adding Interest expense,
Depreciation, Amortisation and provisions excluding tax related
provisions less interest income and Investment income and gains
from extraordinary items.
"Financial payments": current portion of long-term debt
including finance lease payments, interest expense and fees and
dividends distributions.
3. The current ratios shall not be less than 1.
"Current ratios": Current assets divided current
liabilities.
The terms and conditions of outstanding loans are as
follows:
* As at 30 June 2023 corridor rate 20.25% (2022: 17.25%)
13. Loans and borrowings (continued)
AL - Borg company didn't breach any covenants for MTL
agreements.
IDH opted to reduce its exposure to foreign currency risk by
agreeing with General Electric (GE) for the early repayment of its
dollar obligation. The Group and GE have agreed to settle this
balance early for USD 3.55 million, payable in EGP, equivalent to
EGP 110 million.
To finance the settlement, IDH utilized a bridge loan facility,
with half of the amount (EGP 55 million) being funded internally
and the other half (EGP 55 million) provided by a loan from Ahly
United Bank - Egypt, this credit facility was fully repaid during
the six-month period ending 30 June 2023.
14. Other Financial obligations
30 June 2023 31 December 2022
------------- -----------------
Lease liabilities building 777,198 727,426
Financial liability- laboratory equipment 248,959 335,470
1,026,157 1,062,896
============= =================
The financial obligations for the laboratory equipment and
building are payable as follows:
30 June 2023
Minimum payments Interest Principal
----------------- --------- ----------
Less than one year 254,680 102,521 152,159
Between one and five years 1,010,080 287,655 722,425
More than five years 185,611 34,038 151,573
----------------- --------- ----------
1,450,371 424,214 1,026,157
================= ========= ==========
31 December 2022
Minimum payments Interest Principal
----------------- --------- ----------
Less than one year 285,962 137,257 148,705
Between one and five years 1,030,750 314,656 716,094
More than Five years 227,715 29,618 198,097
----------------- --------- ----------
1,544,427 481,531 1,062,896
================= ========= ==========
14. Other Financial obligations (continued)
Amounts recognised in profit or loss:
For the six months ended
For the three months ended 30 June 30 June
2023 2022 2023 2022
Interest on lease liabilities 22,898 18,065 45,221 34,926
------------------ ----------------- ------------- ------------
Expenses related to short-term lease 2,515 9,387 5,191 15,144
================== ================= ============= ============
15. Related party transactions
The significant transactions with related parties, their nature
volumes and balance during the period 30 June 2023 are as
follows:
30 June 2023
-----------------------------------------
Nature of Nature of Transaction amount Amount due from /
Related Party transaction relationship of the year (to)
-------------------- -------------------- -------------------- ------------------- --------------------
EGP'000 EGP'000
Expenses paid on
ALborg Scan (S.A.E)* behalf Affiliate - 351
International Expenses paid on
Fertility (IVF)** behalf Affiliate - 1,771
Entity owned by
Company's board
H.C Security Provide service member 70 (29)
Entity owned by
Life Health Care Provided service Company's CEO (1,740) 778
Bio. Lab C.E.O and
Dr. Amid Abd Elnour Put option liability shareholder 189,748 (249,947)
Bio. Lab C.E.O and
Current account shareholder 191 (19,817)
International
Finance corporation Echo-Scan
(IFC) Put option liability shareholder 14,794 (36,205)
International Current account Echo-Scan
Finance corporation shareholder
(IFC) 623 -
Integrated Treatment
for Kidney Diseases Entity owned by
(S.A.E) Collection Company's CEO (103)
Medical Test analysis 72 1,466
shareholders'
dividends deferral
Hena Holdings Ltd agreement shareholder (63) (2,436)
shareholders'
dividends deferral
Actis IDH Limited agreement shareholder (1,005) (2,960)
--------------------
(307,028)
====================
15. Related party transactions (continued)
31 December 2022
-----------------------------------------
Nature of Nature of Transaction amount Amount due from /
Related Party transaction relationship of the year (to)
-------------------- -------------------- -------------------- ------------------- --------------------
EGP'000 EGP'000
AL borg Scan Expenses paid on
(S.A.E)* behalf Affiliate - 351
International Expenses paid on
Fertility (IVF)** behalf Affiliate 4 1,771
Entity owned by
Company's board
H.C Security Provide service member 220 (99)
Entity owned by
Life Health Care Provided service Company's CEO 424 2,518
Bio. Lab C.E.O and
Dr. Amid Abd Elnour Put option liability shareholder 481,665 (439,695)
Bio. Lab C.E.O and
Current account shareholder (20,008) (20,008)
International
Finance corporation Echo-Scan
(IFC) Put option liability shareholder (15,963) (51,000)
International
Finance corporation Echo-Scan
(IFC) Current account shareholder 12,292 (623)
Integrated Treatment
for Kidney Diseases Entity owned by
(S.A.E) Rental income Company's CEO 116 1,290
Medical Test
analysis 381 -
Dr. Hend El Loan arrangement CEO
Sherbini 17,025 -
shareholders'
dividends deferral
HENA HOLDINGS LTD agreement shareholder (2,373) (2,373)
shareholders'
dividends deferral
ACTIS IDH LIMITED agreement shareholder (1,955) (1,955)
--------------------
(509,823)
====================
* ALborg Scan is a company whose shareholders include Dr.
Moamena Kamel (founder of IDH subsidiary Al-Mokhtabar Labs).
** International Fertility (IVF) is a company whose shareholders
include Dr. Moamena Kamel (founder of IDH subsidiary Al-Mokhtabar
Labs).
15. Related party transactions (continued)
Compensation of key management personnel of the Group
The amounts disclosed in the table are the amounts recognised as
an expense during the reporting period related to key management
personnel.
30 June 2023 30 June 2022
------------- -------------
Short-term employee benefits 22,203 25,424
------------- -------------
22,203 25,424
============= =============
16. General and administrative expenses
For the three months ended 30 June For the six months ended 30 June
2023 2022 2023 2022
------------------- ---------------- ----------------- ----------------
Wages and salaries 55,449 32,979 107,211 66,910
Depreciation 8,181 6,432 16,640 12,915
Amortisation 1,535 1,008 3,089 1,928
Consulting fees 31,503 17,184 68,354 34,064
Other expenses 31,189 20,289 59,046 48,375
------------------- ---------------- ----------------- ----------------
Total 127,857 77,892 254,340 164,192
=================== ================ ================= ================
17. Net finance cost
For the three months ended 30 June For the six months ended 30 June
2023 2022 2023 2022
------------------ ----------------- ----------------- ----------------
Finance income
Interest income 14,907 30,196 30,075 75,443
Net foreign exchange gain (7,161) 8,244 102,159 69,378
Gain on hyperinflationary net
monetary position - 4,807 - 6,471
------------------ ----------------- ----------------- ----------------
Total finance income 7,746 43,247 132,234 151,292
================== ================= ================= ================
Finance cost
Bank charges (2,975) (1,661) (5,383) (8,805)
Interest expense (30,109) (29,426) (70,496) (55,342)
------------------ ----------------- ----------------- ----------------
Total finance cost (33,084) (31,087) (75,879) (64,147)
------------------ ----------------- ----------------- ----------------
Net finance (cost)/income (25,338) 12,160 56,355 87,145
================== ================= ================= ================
18. Tax
A) Tax expense
Tax expense is recognised based on management's best estimate of
the weighted-average annual income tax rate expected for the full
financial year multiplied by the pre-tax income of the interim
reporting period.
B) Income tax
Amounts recognised in profit or loss as follow:
For the three months ended 30 June For the six months ended 30 June
2023 2022 2023 2022
------------------ ----------------- ---------------- -----------------
Current tax:
Current period (46,432) (58,479) (87,568) (159,839)
Deferred tax:
Deferred tax arising on
undistributed reserves in
subsidiaries (11,097) 6,672 (10,907) (48,553)
Relating to origination and
reversal of temporary differences 1,252 (1,495) 81 (2,124)
------------------ ----------------- ---------------- -----------------
Total Deferred tax expense (9,845) 5,177 (10,826) (50,677)
------------------ ----------------- ---------------- -----------------
Tax expense recognised in profit or
loss (56,277) (53,302) (98,394) (210,516)
================== ================= ================ =================
C) Deferred tax liabilities
Deferred tax relates to the following:
30 June 2023 31 December 2022
------------- -----------------
Property, plant and equipment (33,890) (35,804)
Intangible assets (111,345) (109,118)
Undistributed reserves from Group subsidiaries (187,779) (176,871)
Provisions and financial obligation 61 61
------------- -----------------
Net deferred tax liabilities (332,953) (321,732)
============= =================
19. Financial instruments
The Group has reviewed the financial assets and liabilities held
at 30 June 2023. It has been deemed that the carrying amounts for
all financial instruments are a reasonable approximation of fair
value. All financial instruments are deemed Level 3.
20. Earnings per share
For the three months ended 30 June For the six months ended 30 June
2023 2022 2023 2022
------------------ ----------------- ----------------- ----------------
Profit attributed to owners of the
parent 50,681 125,611 223,590 422,220
Weighted average number of ordinary
shares in issue 600,000 600,000 600,000 600,000
------------------ ----------------- ----------------- ----------------
Basic and diluted earnings per
share 0.08 0.21 0.37 0.70
================== ================= ================= ================
The Company has no potential diluted shares as at 30 June 2023
and 30 June 2022, therefore; the earnings per diluted share are
equivalent to basic earnings per share.
21. Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the steering committee that makes
strategic decisions.
The Group has four operating segments based on geographical
location rather than two operating segments based on service
provided, as the Group's Chief Operating Decision Maker (CODM)
reviews the internal management reports and KPIs of each
geography.
The Group operates in four geographic areas, Egypt, Sudan,
Jordan, and Nigeria. As a provider of medical diagnostic services,
IDH's operations in Sudan are not subject to sanctions. The revenue
split, EBITDA split (being the key profit measure reviewed by CODM)
net profit and loss between the four regions is set out below.
Revenue by geographic location
For the three months ended Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- --------
30-Jun-23 782,633 1,414 145,782 26,822 956,651
30-Jun-22 644,550 4,797 105,621 18,618 773,586
Revenue by geographic location
For the six months period ended Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- ----------
30-Jun-23 1,513,673 10,194 290,255 57,820 1,871,942
30-Jun-22 1,524,040 10,469 386,135 33,421 1,954,065
EBITDA by geographic location
For the three months ended Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- --------
30-Jun-23 208,915 (373) 32,670 (7,042) 234,170
30-Jun-22 226,684 (23) 16,478 (2,163) 240,976
EBITDA by geographic location
For the six months period ended Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- --------
30-Jun-23 406,862 12,49 68,502 (15,065) 461,548
30-Jun-22 621,740 63 90,790 (3,332) 709,261
21. Segment reporting (continued)
Net profit / (loss) by geographic location
For the three months ended Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- --------
30-Jun-23 54,684 (435) 4,920 (16,505) 42,664
30-Jun-22 124,044 1,522 2,441 (3,088) 124,919
Net profit / (loss) by geographic location
For the six months period ended Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- --------
30-Jun-23 225,921 3,637 11,312 (29,820) 211,050
30-Jun-22 393,560 4,278 47,471 (6,257) 439,052
Revenue by type Net profit by type
For the three months For the three months
ended 30 June ended 30 June
2023 2022 2023 2022
----------- ----------- ----------- -----------
Pathology 894,756 736,467 79,465 147,694
Radiology 61,895 37,119 (36,801) (22,775)
----------- ----------- ----------- -----------
956,651 773,586 42,664 124,919
=========== =========== =========== ===========
Revenue by type Net profit by type
For the six months For the six months
ended 30 June ended 30 June
2023 2022 2023 2022
---------- ---------- ---------- ---------
Pathology 1,751,192 1,885,271 287,805 477,718
Radiology 120,750 68,794 (76,755) (38,666)
---------- ---------- ---------- ---------
1,871,942 1,954,065 211,050 439,052
========== ========== ========== =========
Non-current assets by geographic location
Egypt region Sudan region Jordan region Nigeria region Total
------------- ------------- -------------- --------------- ----------
30 June 2023 3,064,395 16,988 602,761 84,739 3,768,883
31 December 2022 3,039,930 14,993 494,244 121,770 3,670,937
21. Segment reporting (continued)
The operating segment profit measure reported to the CODM is
EBITDA, as follows:
For the three months ended 30 June For six months period ended 30 June
2023 2022 2023 2022
------------------ ----------------- ------------------ ------------------
Profit from operations 136,479 166,061 265,289 562,423
Property, plant and equipment
depreciation 63,038 49,136 126,755 95,184
Right of use depreciation 32,694 24,289 65,632 48,215
Amortization of Intangible assets 1,959 1,490 3,872 3,439
------------------ ----------------- ------------------ ------------------
EBITDA 234,170 240,976 461,548 709,261
================== ================= ================== ==================
22. Important events
On March 8, 2023, the Group completed the establishment of
Medical Health Development Company, a limited liability company
based in Saudi Arabia with a total stake of 51% directly and
indirectly through one of the Group's subsidiaries, where
Integrated Diagnostics Holdings (IDH) owns 31% and Al Makhbaryoun
Al Arab LLC ("Biolab")-Jordan a subsidiary owns 20%. The company's
activity did not begin until the period ending June 30, 2023.
The Central Bank of Egypt increased the interest rate by 200
points, to reach 19.25% instead of 17.25%. This was by a decision
of the Monetary Policy Committee, according to the meeting held on
March 30, 2023.
During April 2023, an armed conflict began in Sudan that led to
security unrest across the country. Business has been temporarily
frozen in the branches of the Sudan Laboratory Company and Ultra
Lab until further notice, which will greatly affect the profits of
the geographical sector in the subsequent period. There is no
damage to the material assets to date. The Group's management is
closely monitoring the situation and is currently evaluating the
impact of these events on the Group's business results and
activities.
23. Subsequent event
The Central Bank of Egypt increased the interest rate by 100
points, to reach 20.25% instead of 19.25%. This was by a decision
of the Monetary Policy Committee, according to the meeting held on
6 August 2023.
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END
IR BCGDIXGXDGXG
(END) Dow Jones Newswires
August 31, 2023 02:00 ET (06:00 GMT)
Integrated Diagnostics (LSE:IDHC)
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