GuruFocus - Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Integrated Diagnostics Holdings PLC (LSE:IDHC) reported a 34% year-on-year increase in revenue, reaching 4.1 billion Egyptian pounds.
- The company achieved a 5% improvement in bottom-line margin compared to the previous year.
- Egypt remains a strong market, contributing 82% of total revenue with a 35% increase in revenue from the previous year.
- Strategic price adjustments and branch expansions have helped boost average revenue per test and safeguard against inflation.
- The company successfully managed costs, maintaining raw material costs stable and reducing salary expenses as a percentage of revenue.
- Revenue in Jordan declined by 2% in local currency terms due to government-imposed price controls.
- The ongoing conflict in Sudan has resulted in most branches remaining closed, impacting operations.
- The Saudi Arabian expansion is behind schedule, with only two branches opened instead of the planned six.
- The company has not decided on dividend distribution for 2024, focusing instead on ongoing projects.
- The competitive environment in Egypt remains challenging, with high inflation and currency devaluation affecting consumer purchasing power.
A: We still haven't got the board approval for the budget, so it's too early to give guidance about the budget of 2025. I'm afraid. - Dr. Henda Chinni, CEO
Q: What is your pricing strategy for 2025? Will it be in line with inflation or slightly lower to gain market share?
A: We'll give guidance on the price increase in 2025 when we share our budget for the year after we take the approval of the board. - Dr. Henda Chinni, CEO
Q: What is the strategy for store openings in Saudi Arabia?
A: For 2024, we're still operating two branches in Saudi Arabia. We will give more guidance once we finalize the budget. Our initial plan is to have at least six branches next year, but this will be decided in the budget as well. - Tarek Yah, Investor Relations Director and Sheif Zaini, CFO
Q: Any visibility on reinstating dividends for 2024? Also, what measures can you take to support the walk-in business, which seems under pressure?
A: We haven't decided to distribute dividends this year as we are considering different projects. Regarding the walk-in business, we saw a 34% increase in revenue per test and a 28% increase in revenue for the first nine months versus the same period last year. - Dr. Henda Chinni, CEO and Tarek Yah, Investor Relations Director
Q: How is the competitive environment in Egypt, and what is happening to your market share?
A: We haven't seen any dramatic change in the competitive scene in Egypt. The players in the market remain the same, and some have even dropped. We don't see anything dramatic happening in the competitive scene in the private sector. - Dr. Henda Chinni, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.