Integrated Diagnostics Holdings plc

Hello, everyone. This is Ahmed Matas from EFG MS, and welcome to IDH's 2025 results conference call. I'm pleased to be joined with Dr. Hindish Shalvini, Chief Executive Officer, Sharif Al-Zaytani, VP and Group CFO, and Dara Yahya, Director of Investor Relations. As usual, the company will start with a brief presentation, and then we'll open the floor for Q&A. IDH's management, please go ahead.

Good afternoon, ladies and gentlemen, and thank you for joining us for the call year results. My name is Tariq Iqay. I'm Head of Investor Relations. Joining me today, Dr. Hindul Sherbini, our CEO, and Mr. Sharif El-Dini, our CFO. Dr. Hindul began the call with a summary of the main highlights from the year. After that, I will discuss in more detail the main macro and geopolitical trends seen across our markets. After my presentation, Mr. Sharif will offer a deeper analysis of our financial performance. We will then open for Q&A. With that, I will hand it over to Dr. Hend for her introduction. Please, Dr. Hend.

Thank you, Tarek, and good afternoon, everyone. I'm Dr. Hendra Shardini, CEO of IDH. I'm pleased to report that 2025 was another very strong year for the group, with robust operation and financial performance across our core markets and continued progress on our strategic priorities. The results we are presenting today reflect not only improving market conditions in key geographies, but also the tangible impact of the strategic initiatives we have been implementing over the past two years, particularly around network expansion, service diversification, digitalization, and operational optimization. Throughout the year, we continue to strengthen our leadership in Egypt and Jordan, while making very encouraging progress in Nigeria and Saudi Arabia. We are also very pleased with the sustained improvements in profitability across the income statement, which continue to validate the scalability of our model and our ability to translate growth into stronger returns. More broadly, we are encouraged by the increased resilience of our platform, which today combines scale, a richer service mix, and improving efficiency across markets. Turning to our performance in more detail, during 2025, we continue to build on the strong momentum established over the prior year, delivering 37% revenue growth year-on-year, supported by growth across both volume and value metrics. Test volumes increased by 11% during the year, with all operation geographies contributing to this expansion, supported by stronger patient engagement, deeper penetration in both walk-in and corporate channels, and improving referral flows. At the same time, our average revenue per test rose 24%, reflecting a richer test mix, broader uptake of radiology and specialized diagnostics, and the price of the pricing actions introduced earlier in the year. These trends also helped us further strengthen our average test per patient matrix. which reached 4.6 tests per encounter, demonstrating the continuous depth of patient relationships and our success in expanding cross-service utilization across our platform. In Egypt, momentum remained very strong throughout the year, supported by solid growth in both volume and value, alongside strong brand equity and a more supportive macroeconomic backdrop. Test volumes in Egypt continue to expand steadily, while average revenue per test saw a strong uplift driven by favorable mixed dynamics, including higher-value radiology, radiotherapy, specialized diagnostics, and corporate channels. Egypt remained the core engine of the group performance, contributing 84.6% of total revenue in 2025 and continuing to demonstrate strong scalability, resilience, and operating efficiency. The continued expansion of our physical network in Egypt remained a key growth driver during the year. Over the past 12 months, we added 137 new branches in Egypt, bringing the total to 724 locations nationally at year-end. These new sites have helped deepen our presence, not only in Greater Cairo, but also in underserved and fast-growing regional cities, allowing us to better serve both contracts and walk-in patients. Our household service remains a strategic differentiator, sustaining its strong contribution of around 20% of Egypt's revenues, continues to demonstrate the effectiveness of our post-pandemic strategy, and reinforces our position as an early mover in home-based diagnostics in the region. El BorgScan continues to demonstrate strong momentum as a key component of our long-term strategy to build a more integrated diagnostics platform. During 2025, we took an important strategic step with the acquisition and integration of ChiroRay for radiotherapy, which broadened our capabilities in radiotherapy and strengthened our position in oncology diagnostics. This transaction enhances our ability to participate more meaningfully in higher-value specialized diagnostics and supports our ambition to build a more comprehensive offering for patients and refining physicians. We expect cardiology and radiotherapy to play an increasingly prominent role in our growth mix over the coming period, supported by expanding service capability, greater patient awareness, and growing demand for specialized imaging and treatment support service. Over the past two years, a key strategic priority for IDH has been the successful launch and upscale of our Saudi operations. I'm pleased to share that our presence in the kingdom continued to progress very encouragingly during 2025. with strong momentum supported by growing demand, deeper market visibility, and sustained improvement in both volume and value metrics. During the year, Biolab KSA generated R5 million in revenue, representing 252% year-on-year growth, as test volumes and patient throughput increased sharply, and the business benefited from the expansion of the network to three branches. This growth continues to highlight the effectiveness of our ramp-up strategy in the market, which is designed to accelerate revenue growth and establish Biolab K3 as a recognized provider in the large but highly fragmented social diagnostics market. At the same time, we continue to advance our growth approach, which includes targeted marketing campaigns to build brand recognition, selective promotional initiatives to drive patient acquisition, and ongoing efforts to strengthen physician and patient engagement. While still in the early stages of development, Biolab KSA is demonstrating strong operational traction and reaffirming our belief in the long-term potential of Saudi Arabia as a key pillar in the group's regional growth strategy. As always, profitability remained a core focus for us, and we are very pleased to see sustained improvement across all levels of the income statement. We continue to benefit from strong operating leverage, tighter cost controls, and better resource allocation across our subsidiaries, including Nigeria, where Ecolab delivered a full year of cost of EBITDA, marking a key milestone in its turnaround and confirming the potential of this high-growth market. Overall, both COGS and SG&E as a share of revenue continued to decline, supported by disciplined cost management and our growing digitalization efforts. COGS revenue fell to 57.3%, while SG&E declined to 15% from 16.9% last year. underscoring the success of our optimization initiatives. Consequently, our EBITDA margin expanded to 34.9% from 29.7% last year, while gross profit margin rose to 42.7% compared with 38.1% in 2024. These efforts combined with strong top-line growth and improved pricing and mix have translated into meaningful margin expansion and greater earnings quality with adjusted net profit increasing 79% year-on-year. I'm also very pleased to share that the Board of Directors has declared a dividend of 0.0085 US cents per share for the year ended December 2025, presenting a total distribution of 4.9 million US dollars. This reflects our commitment to delivering sustainable shareholder value by preserving the flexibility to fund attractive growth opportunities. In parallel, we remain prudent in our capital allocation approach and will continue to reassess distribution in line with evolving market conditions and investment needs. Before handing the poll back to Tara, I would like to briefly touch on how we view the business as we move into 2026. We entered the year with a stronger platform, broader geographic footprint, and improved profitability profile, which we believe positions us well to continue expanding access to high-cost diagnostics while driving sustainable growth. Our focus remains on deepening our leadership in Egypt, accelerating the ramp-up in Saudi Arabia, building on the turnaround achieved in Nigeria, and continuing to improve operating efficiency across the group. At the same time, we remain mindful of evolving regional developments, including the escalation of U.S.-Israel conflicts with Iran in early 2026, which may introduce heightened uncertainty across the region, particularly in markets such as Jordan and Saudi Arabia. With that, I'll hand the call back over to Tarek and Sharif, who will take you through key trends across our markets, and in more detail, breakdown of our financial performance of the year. Thank you very much.