Earnings watch: IDH, Cleopatra Hospitals Group
EARNINGS WATCH- London-listed Integrated Diagnostics Holdings, the leading player in Egypt by market share on the strength of its Al Mokhtabar and Al Borg brands, reported at 26% surge in its bottom line to EGP 160 mn in 1H2017, driven by a 24% growth in its top line to EGP 685 mn, strong interest income and a contracting in FX charges. CEO Dr. Hend El Sherbini noted that despite the impact of Ramadan and the feast — both of which fell fully in 1H2017 this year — the company was “not only been able to execute on our growth strategies amidst ongoing macroeconomic crosscurrents, but that we have done so at a time when consumer brands have suffered significant challenges to both volumes and margins.” El Sherbini confirmed IDH’s full-year guidance for “revenue growth in excess of 20% and … EBITDA margins at or above 40% as we move past the seasonal impact of Ramadan.”
EARNINGS WATCH– Cleopatra Hospitals Group reported a 184% y-o-y increase in consolidated net income to EGP 23.6 mn in 2Q2017. Revenues for the quarter grew 29% y-o-y to EGP 261.8 mn. The surge in profit was driven by strong revenue growth, improved cost efficiencies, and higher interest income. “Strong results are also a reflection of the industry’s defensive nature amid an increasing challenging macro environment, and come despite the second quarter of the year typically being a low season for healthcare in addition to the Ramadan effect,” said CEO Ahmed Ezzeldin. He added that the company is actively pursuing expanding both Cleopatra’s network and its portfolio of specializations. On the company’s operations, the Group’s first polyclinic in New Cairo is set to be operational before year-end. The Group is also expected to close an acquisition of real estate assets of a hospital in West Cairo in 4Q2017. The Group is also acquiring a large hospital to the north of Cairo, and is investing in a brownfield hospital project in Bani Sweif.