Int Diag Hld Regulatory News (IDHC)

 EGP mn

Q1 2022

Q1 2023

Change

Revenues

1,180

915

-22%

Conventional Revenues

640

915

43%

Covid-19-related Revenues

540

-

-

Cost of Sales

(649)

(591)

-9%

Gross Profit

532

325

-39%

Gross Profit Margin

45%

35%

-10 pts

Operating Profit

396

129

-68%

EBITDA5

468

227

-51%

EBITDA Margin

40%

25%

-15 pts

Net Profit

314

168

-46%

Net Profit Margin

27%

18%

-8 pts

Cash Balance

2,659

813

-69%

Q1 2022

Q1 2023

Change

Branches

520

576

56

Patients ('000)

2,649

1,939

-27%

Revenue per Patient (EGP)

446

472

6%

Tests ('000)

8,402

8,036

-4%

Conventional Tests ('000)

7,148

8,036

12%

Covid-19-related Tests ('000)

1,254

-

-

Revenue per Test

140

114

-19%

Revenue per Conventional Test (EGP)

90

114

27%

Revenue per Covid-19-related Test (EGP)

431

-

-

Test per Patient

3.2

4.1

31%

Revenue Analysis

Test Volume Analysis

Revenue per Test Analysis

Revenue Analysis: Contribution by Patient Segment

Contract Segment (63% of Group revenue)

IDH's contract segment recorded conventional revenue of EGP 579 million during the first quarter of 2023, a 46% year-on-year expansion from EGP 396 million in Q1 2022. The increase was driven by a sustained increase in test volumes at the Company's conventional business, which rose 16% year-on-year to reach 6.5 million and was further bolstered by an increase in average revenue per conventional test, which grew 26% year-on-year to EGP 89 in Q1 2023.

Walk-in Segment (37% of Group revenue)

In parallel, IDH's walk-in segment also recorded strong conventional revenue growth of 38% in Q1 2023 driven by a 39% increase in average revenue per test. Conventional test volumes at the segment remained largely stable, recording 1.5 million tests in Q1 2023. Total walk-in revenues for the quarter recorded EGP 337 million, down 37% year-on-year. Lower walk-in revenues for the quarter mainly reflect the high base effect resulting from the significant contribution made by Covid-19-related testing in the comparable three months of 2022.

It is important to highlight that the average number of tests per patient at both the Company's contract and walk-in segments are continuing to normalize following a decrease associated with the Covid-19 pandemic. More specifically, test per patients at the contract and walk-in segments in Q1 2023 reached 4.3 and 3.6 tests per patient, respectively.

Walk-in Segment

Contract Segment

Total

1Q22

1Q23

Change

1Q22

1Q23

Change

1Q22

1Q23

Change

Revenue (EGP mn)

535

337

-37%

645

579

-10%

1,180

915

-22%

Conventional Results (EGP mn)

244

337

38%

396

579

46%

640

915

43%

Total Covid-19-related revenue (EGP mn)

291

-

-

250

-

-

540

-

-

Patients ('000)

971

422

-57%

1,678

1,517

-10%

2,649

1,939

-27%

% of Patients

37%

22%

63%

78%

Revenue per Patient (EGP)

551

798

45%

385

381

-1%

446

472

6%

Tests ('000)

2,144

1,519

-29%

6,258

6,517

4%

8,402

8,036

-4%

% of Tests

26%

19%

74%

81%

Conventional tests ('000)

1,530

1,519

-0.7%

5,618

6,517

16%

7,148

8,036

12%

Total Covid-19-related tests ('000)

614

-

-

641

-

-

1,254

-

-

Revenue per Test (EGP)

250

222

-11%

103

89

-14%

140

114

-19%

Conventional Revenue per Test (EGP)

160

222

39%

70

89

26%

90

114

27%

Test per Patient

2.2

3.6

63%

3.7

4.3

15%

3.2

4.1

31%

Revenue Analysis: Contribution by Geography

Egypt (79.9% of Group revenue)

At IDH's home market, Egypt, the Company continued posting strong conventional revenue growth on the back of higher test volumes and average revenue per test. More specifically, Egypt recorded conventional revenue growth of 33% year-on-year, booking revenues of EGP 731 million in Q1 2023 compared to EGP 549 million one year prior. Throughout the quarter, IDH's Egyptian operations recorded conventional test volume year-on-year growth of 13% and an 18% year-on-year increase in average revenue per test. Consolidated revenues in Egypt recorded a 17% year-on-year contraction versus the first quarter of 2022 when Covid-19-related revenues has significantly boosted the country's consolidated top-line.

Al-Borg Scan

IDH's Egyptian radiology venture, Al Borg Scan, continued its rapid growth trajectory booking revenues of EGP 28 million in Q1 2023, up a robust 65% versus Q1 2022. Revenue growth for the quarter was supported by a 37% year-on-year growth in test volumes as well as by a 21% year-on-year rise in average revenue per test provided. Al Borg Scan continued to see its contribution to Egypt's revenues grow, nearly doubling to reach 4% of Egypt's overall top-line in Q1 2023. Patient and test volumes continue to be supported by the successful ramp up of IDH's newer radiology branches launches throughout FY 2021 and FY 2022. Building on this, the Company is looking to grow its current network of six branches with the rollout of an additional branch by year-end 2023.

House Calls

IDH's house call service in Egypt recorded revenue of EGP 114.2 million in the first quarter of the year, contributing to 16% of Egypt's revenues for the period. The robust contribution, which stands well above IDH's pre-pandemic averages, was recorded despite demand for the Company's Covid-19-related offering falling to near zero during the quarter.

Wayak

Wayak recorded a 16% year-on-year increase in the number of orders, which came in at 40 thousand in Q1 2023 compared to 34.5 thousand this time last year. EBITDA losses for the quarter recorded EGP 0.4 million, a decline of 21% versus losses recorded in Q1 2022. The venture's EBITDA losses are expected to decrease further in the coming months as management's strategic efforts continue to pay off.

Detailed Egypt Revenue Breakdown

Jordan (15.8% of Group revenue)

IDH's Jordanian subsidiary, Biolab, recorded solid conventional revenue year-on-year growth of 12% in JOD terms (in EGP terms revenue was up 105% year-on-year) supported by higher test volumes for the quarter of 12%. On a consolidated level, in EGP terms, Biolab recorded a 48% year-on-year decline in revenue for the quarter reflecting the high base effect resulting from results in Q1 2022 having included a significant contribution from Biolab's Covid-19-related offering. Similarly, in JOD terms, Biolab's consolidated revenues declined 73% year-on-year.

Detailed Jordan Revenue Breakdown

Nigeria (3.4% of revenue)

Echo-Lab, IDH's Nigerian subsidiary, saw its revenue for the first quarter of the year more than double to record EGP 31 million in Q1 2023 from EGP 15 million in Q1 2022. In local currency terms, revenue expanded a solid 26% year-on-year. Top-line growth for the quarter was dual driven as both test volumes and average revenue per test expanded versus the same three months of 2022. More specifically, total tests performed in the first quarter increased 16% year-on-year. Meanwhile, average revenue per test increased 80% year-on-year in EGP terms and 9% year-on-year in NGN terms. IDH's Nigerian subsidiary now boasts 12 fully operational branches throughout the country, up from 10 branches as of 31 March 2022.

Sudan (1.0% of revenue)

IDH's operations in Sudan recorded revenue growth in EGP terms of 55% reflecting a 119% year-on-year increase in average revenue per test in the country. In SDG terms, revenues were up by 11% supported by a 57% year-on-year rise in average revenue per test in local currency terms. As at 31 March 2023, IDH's branches in the country stood at 18 up from 17 this time last year. IDH management continues to closely monitor the evolving situation in the country and a detailed emergency response plan is in place to safeguard IDH's staff and operations. Currently, 16 of IDH's 18 branches in the country have temporarily halted operations. Only two of the 18 branches, located in Madani and Port-Sudan, are currently operational.

Q1 2022

Q1 2023

Change

Egypt Revenue (EGP mn)

879

731

-17%

Conventional (EGP mn)

549

731

33%

Radiology Revenue

17

28

65%

Covid-19-related (EGP mn)

330

-

-

Egypt Contribution to IDH Revenue

74.5%

79.9%

Jordan Revenue (EGP mn)

281

144

-48%

Conventional (EGP mn)

70

144

105%

Covid-19-related (EGP mn)

210

-

-

Jordan Revenues (JOD mn)

12.5

3.4

-73%

Jordan Revenue Contribution to IDH Revenue

23.8%

15.8%

Nigeria Revenue (EGP mn)

15

31

109%

Nigeria Revenue (NGN mn)

371

468

26%

Nigeria Contribution to IDH Revenue

1.3%

3.4%

Sudan Revenue (EGP mn)

5.7

8.8

55%

Sudan Revenue (SDG mn)

152

169

11%

Sudan Contribution to IDH Revenue

0.5%

1.0%

Q1 2022

Q1 2023

Change

USD/EGP

16.5

30.5

85.0%

JOD/EGP

23.2

42.9

84.5%

NGN/EGP

0.04

0.07

67.1%

SDG/EGP

0.04

0.05

39.1%

Q1 2022

Q1 2023

Change

Egypt Patients Served (mn)

2.0

1.8

-12%

Egypt Tests Performed (mn)

7.3

7.3

0.6%

Conventional tests (mn)

6.5

7.3

13%

Covid-19-related tests (mn)

0.8

-

-

Jordan Patients Served (k)

552

92

-83%

Jordan Tests Performed (k)

991

582

-41%

Conventional tests (k)

519

582

12%

Covid-19-related tests (k)

472

-

-

Nigeria Patients Served (k)

33

35

4%

Nigeria Tests Performed (k)

62

72

16%

Sudan Patients Served (k)

28

11

-61%

Sudan Tests Performed (k)

47

33

-29%

Total Patients Served (mn)

2.6

1.9

-27%

Total Tests Performed (mn)

8.4

8.0

-4%

31 March 2022

31 March 2023

Change

Egypt

472

520

48

Jordan

21

26

5

Nigeria

10

12

2

Sudan

17

18

1

Total Branches

520

576

56

-Cost of Sales

Cost of sales dropped 9% year-on-year in Q1 2023 to book EGP 591 million. The decline in cost of sales for the period was primarily a result of a 27% year-on-year decline in raw material expenses coupled with lower Covid-19-related costs for the three-month period.

Cost of Sales Breakdown as a Percentage of Revenue

Raw material costs including the cost of specialized analysis at other laboratories (31% of consolidated cost of sales), came in as the second largest contributor to cost of sales during the quarter, recording EGP 185 million compared to EGP 253 million in Q1 2022. As a percentage of revenue, raw materials came in at 20.2%, down from 21.4% in the same period of the previous year. The decline wholly reflects the high base effect resulting from Covid-19-related test kits purchased during Q1 2022, when demand for IDH's Covid-19-related test offering was high. Looking at conventional test kit prices, it is important to note that the Company did register a rise in average prices for conventional test kits throughout the first quarter of the year on the back of a weaker EGP and rising inflation. Rising conventional test kit prices were only partially mitigated by free test kits received during January 2023 from one of IDH's largest suppliers, Siemens.

Wages and salaries including employee share of profits (32% share of consolidated cost of sales) made up the largest share of total cost of sales during the first quarter of 2023, increasing 14% year-on-year to book EGP 190 million versus EGP 167 million in Q1 2022. The increase in direct wages and salaries for the period was primarily driven by increases in salaries and wages in Egypt, both due to higher than usual annual wage increases and adjustments to partially compensate for rising inflation as well as extra staffing costs to support the rollout of new branches. Higher wages and salaries also in part reflected an increase in Jordanian salaries due to the translation impact as a result of the devaluation of the Egyptian pound over the past year. Finally, wages and salaries in Nigeria also contributed to consolidated wages and salaries expansion due to additional radiology staff hires, coupled with annual salary increases.

Direct Wages and Salaries by Region

Direct depreciation and amortization costs (15% of consolidated cost of sales) for the period booked EGP 88 million, increasing 37% year-on-year from EGP 64 million in Q1 2022. Depreciation and amortization expenses witnessed a notable increase from the same period of the previous year primarily due to the rollout of new branches across IDH's network, as the Company launched 56 new branches, 24 of which were launched during the first quarter of 2023.

Other expenses (22% of consolidated cost of sales) for the quarter decreased 23% year-on-year, reaching EGP 127 million in Q1 2023. Increases in other expenses for the period came on the back of increased repair & maintenance costs and cleaning costs, which combined accounted for approximately 29% of overall other expenses for the quarter. Increases in repair & maintenance costs and cleaning costs were further heightened by the rollout of additional branches across IDH's network.

Gross Profit

IDH's gross profit booked EGP 325 million during Q1 2023, down 39% compared to the same period of the previous year. The Company's gross profit margin on revenue came in at 35% decreasing 10 percentage points year-on-year. The drop in gross profitability for the period is primarily a reflection of a post-Covid-19 normalisation in IDH's test mix, as well as the previously discussed cost increases largely related to direct wages and salaries.

Selling, General and Administrative Expenses

Total SG&A outlays recorded during Q1 2023 amounted to EGP 196 million, increasing 45% year-on-year. As a percentage of consolidated revenues, SG&A expenses came in at 21% compared to 11% in Q1 2022. Increases in SG&A expenses are mainly attributable to:

· An increase in wages and salaries primarily due to an increase in IDH's Board of Directors remuneration as a result of the addition of a board member during the second quarter of 2022, as well as increased salaries in Nigeria to support the hire of new management.

· An increase in accounting fees related to the external auditor "PwC", reflecting both an increase in the fees paid in US dollars as well as the devaluation of the EGP versus the same period of last year (average rate in Q1 2023 was 30.5 EGP/USD versus 16.5 EGP/USD in Q1 2022).

· Increased consulting fees related to the Company's 2023 sustainability report. Additionally, one-off expenses related to an information strategy agreement executed in 2023 and legal fees related to the Pakistan transaction. It is important to note that these expenses have been impacted by several devaluations throughout 2022 in IDH's home market of Egypt.

· Higher marketing and advertisement expenses, which increased 43% year-on-year to reach EGP 32 million, compared to EGP 23 million during Q1 2022. Increases in advertising expenses were the result of marketing efforts aimed at expediting the ramp-up of Al Borg Scan's operations as well as supporting the rollout of new branches in IDH's network.

· During Q1 2023, IDH recorded other income of EGP 5 million versus other expenses of EGP 1 million in the comparable three-month period of 2022. The figure is partially related to a EGP 1.3 million liability pertaining to a contract with Siemens to equip Al-Borg Scan's Capital Business Park branch with PET-CT equipment, which had weighed down other income in the corresponding period of 2022.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses by Region

Selling, General and Administrative Salaries by Region

EBITDA

The Company's EBITDA10 booked EGP 227 million during Q1 2023, down 51% year-on-year from the figure recorded in the same period of the previous year. IDH's EBITDA margin came in at 25% for the quarter versus 40% in Q1 2022. Lower EBITDA profitability for the period mainly reflects lower gross profitability coupled with the aforementioned increases in SG&A expenses.

EBITDA by Country

In Egypt, EBITDA recorded EGP 198 million in Q1 2023, down 50% year-on-year compared to the EGP 395 million in the same period of the previous year on the back of decreased consolidated revenue from Egyptian operations. EBITDA margin for the period declined to 27% in Q1 2023 from 45% in Q1 2022. Lower profitability at the EBITDA level was dual driven by decreased gross profitability as well as increased SG&A expenses, which grew 47% year-on-year.

In Jordan, IDH's subsidiary, Biolab, booked an EBITDA of EGP 36 million in the current quarter, down 52% year-on-year and with an associated margin of 25%. In JOD terms, EBITDA declined 75% year-on-year during the first quarter of 2023. Decreases in EBITDA and its margin reflect lower gross profitability in Jordanian operations as a result of the post-Covid-19 normalisation, in addition to increased SG&A expenses, which increased 34% y-o-y to record EGP 25 million.

In Nigeria, EBITDA losses widened to EGP 8 million from EGP 1 million in Q1 2022. Widening EBITDA losses were primarily driven by high levels of inflation (in particular fuel inflation) which have weighed on IDH's Nigerian operations over the past year, more than outweighing the venture's consistent revenue growth. In local currency terms, EBITDA contracted 289% year-on-year in the first three months of 2023.

The Company's Sudanese operations reported positive EBITDA of EGP 2 million, up from EGP 0.1 million in the same period of the previous year on the back of increased gross profitability. In SDG terms, EBITDA recorded a 720% year-on-year expansion for the first quarter of the year.

Regional EBITDA in Local Currency

10EBITDA 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.

Interest Income / Expense

IDH reported interest income of EGP 15 million in Q1 2023, a 66% year-on-year decrease from the EGP 45 million recorded in the same period of the previous year. Decreased interest income is primarily attributable to lower cash balances as a result of the record cash dividend distributed during the previous year.

Interest expense11 booked EGP 43 million during Q1 2023, increasing 29% year-on-year from EGP 33 million one year prior. The increase is mainly attributable to:

· 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 worth highlighting that IDH's interest bearing debt balance increased to EGP 163 million as at 31 March 2023, from EGP 117 million at year-end 2022. The increase in interest bearing debt is primarily attributable to IDH's strategy of reducing foreign currency risk by coming to an agreement 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 loan by Ahly United Bank - Egypt.

Interest Expense Breakdown

11Interest expenses on medium-term loans include EGP 5.0 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.

12Loan-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.

13Interest expenses on medium-term loans include EGP 5.0 million 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.

Foreign Exchange

IDH booked a foreign exchange gain of EGP 109 million during Q1 2023, up from EGP 61 million in the same period of the previous year.

Taxation

Tax expenses (income and deferred tax) came in at EGP 42 million during Q1 2023, down from EGP 157 million in Q1 2022. IDH's effective tax rate for the period stood at 20% in the current period, compared to 33% in Q1 2022. The decrease in effective tax rate for the period was primarily driven by the decline in undistributed reserves from Group's subsidiaries compared to the same period of the previous year, which dropped due to a special dividend paid to shareholders during the third quarter of 2022 (see "Deferred Tax Liabilities Analysis" table below). It is worth noting that there is no tax payable for IDH's two companies at the holding level, while tax was paid on profits generated by its operating subsidiaries (Egypt 22.5%, Jordan 21%, Nigeria 30% and Sudan 30%).

Taxation Breakdown by Region

Deferred Tax Liabilities Breakdown

Net Profit

IDH reported consolidated net profit of EGP 168 million, down 46% year-on-year from EGP 314 million in Q1 2022. The Company's net profit margin stood at 18%, down 8 points from 27% in Q1 2022.

Assets

Property, Plant and Equipment

IDH recorded gross property, plant and equipment (PPE) of EGP 2,425 million as at 31 March 2023, up from EGP 2,208 million as at 31 December 2022. The rise in CAPEX as a share of revenues during Q1 2023 is partially attributable to the EGP 42 million spent on new radiology branches in Egypt, as well as the EGP 134 million translation effect (associated with Jordan, Sudan, and Nigeria) which resulted from the Egyptian Pounds devaluation throughout the past twelve months.

Total CAPEX Addition Breakdown - Q1 2023

Accounts Receivable and Provisions

As at 31 March 2023, IDH booked accounts receivable of EGP 467 million, up from EGP 395 million as of 31 December 2022. The Company's receivables' Days on Hand (DoH) recorded 122 days, compared to 124 days at year-end 2022.

Provisions for doubtful accounts recorded during Q1 2023 stood at EGP 11 million, up 49% year-on-year from EGP 7 million in Q1 2022. The increase in provisions reflect the slowdown in collections driven by the current economic condition in Egypt region.

Inventory

As of the end of Q1 2023, IDH recorded an inventory balance of EGP 296 million, up from EGP 265 million as of year-end 2022. In parallel, Days Inventory Outstanding (DIO) rose to 144 days from 127 days as at 31 December 2022. The increase in DIO was driven by management initiatives to accumulate inventory as a part of its strategy to hedge against ongoing inflation.

Cash and Net Debt/Cash

Cash balances booked as at 31 March 2023 remained relatively stable compared to those as at year-end 2022, recording EGP 813 million.

IDH's net debt14 balance as at 31 March 2023 stood at EGP 424 million, compared to a net debt balance of EGP 374 million as at year-end 2022.

Note: Interest Bearing Debt includes accrued interest for each period.

Lease liabilities and financial obligations on property recorded EGP 782 million as at 31 March 2023, up from EGP 727 as at year-end 2022. The increase in lease liabilities is primarily due to the rollout of 24 new branches across IDH's network.

Meanwhile, financial obligations related to equipment decreased to EGP 278 million, from EGP 335 million as at 31 December 2022. The decline in financial obligations related to equipment reflects the early repayment of IDH's contractual obligations with General Electric (GE) as part of the Company's efforts to limit its foreign currency exposure. To finance the settlement, IDH utilized a bridge loan facility, with half of the amount due funded internally and the other half provided by a loan from Ahly United Bank - Egypt.

Finally, interest bearing debt recorded EGP 163 million, up from EGP 117 million as at year-end 2022. The increase in interest bearing debt was primarily driven by additional usage of MTL to support Al Borg Scan's expansion. It is worth highlighting that interest-bearing debt for both periods excluded accrued interest.

Liabilities

Accounts Payable17

IDH recorded accounts payable of EGP 277 million as at 31 March 2023, remaining largely stable from the EGP 270 million recorded as at year-end 2022. Simultaneously, the Group's Days Payable Outstanding (DPO) decreased to 140 from 151 as at 31 December 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).

14The 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.

15As 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.

16IDH'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).

17Accounts payable is calculated based on average payables at the end of each period.

INTEGRATED DIAGNOSTICS HOLDINGS plc - "IDH"

AND ITS SUBSIDIARIES

Consolidated Financial Statements

for the quarter ended 31 March 2023

Notes

31 Mar 2023

31 Dec 2022

EGP'000

EGP'000

 Assets

Non-current assets

Property, plant and equipment

4

1,413,485

 1,326,262

Intangible assets and goodwill

5

1,732,745

 1,703,636

Right of use assets

6

 677,726

 622,975

Financial assets at fair value through profit and loss

7

 22,961

 18,064

Total non-current assets

3,846,917

 3,670,937

Current assets

Inventories

 296,363

 265,459

Trade and other receivables

8

 611,033

 543,887

Financial assets at amortized cost

9

 257,668

 167,404

Cash and cash equivalents

10

 555,373

 648,512

Total current assets

1,720,437

 1,625,262

Total assets

5,567,354

 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

(298,406)

 (490,695)

Translation reserve

 (61,726)

 24,173

Retained earnings

 955,990

 783,081

Equity attributable to the owners of the Company

2,433,395

 2,154,096

Non-controlling interests

 406,714

 292,885

Total equity

2,840,109

 2,446,981

Non-current liabilities

Provisions

 3,538

 3,519

Borrowings

13

 79,560

 93,751

Other financial obligations

15

 892,894

 914,191

Non-current put option liability

14

 56,992

 51,000

Deferred tax liabilities

19-C

 323,123

 321,732

Total non-current liabilities

1,356,107

 1,384,193

Current liabilities

Trade and other payables

11

 694,177

 701,095

Other financial obligations

15

 167,515

 148,705

Current put option liability

12

 241,414

 439,695

Borrowings

13

 83,320

 22,675

 Current tax liabilities

 184,712

 152,855

Total current liabilities

1,371,138

 1,465,025

Total liabilities

2,727,245

 2,849,218

Total equity and liabilities

5,567,354

 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 May 2023 by:

Dr. Hend El Sherbini

Hussein Choucri

Chief Executive Officer

Independent Non-Executive Director

Notes

31 Mar 2023

31 Mar 2022

EGP'000

EGP'000

Revenue

22

 915,291

 1,180,479

Cost of sales

 (590,717)

 (648,793)

Gross profit

 324,574

 531,686

Marketing and advertising expenses

 (63,295)

 (40,764)

Administrative expenses

17

 (126,483)

 (86,300)

Impairment loss on trade and other receivable

 (10,683)

 (7,178)

Other Income

 4,697

 (1,082)

Operating profit

 128,810

 396,362

Finance costs

18

 (42,795)

 (33,060)

Finance income

18

 124,488

 108,045

Net finance income /(costs)

 81,693

 74,985

Profit before income tax

 210,503

 471,347

Income tax expense

19-B

 (42,117)

 (157,214)

Profit for the year

 168,386

 314,133

Profit attributed to:

Owners of the Company

 172,909

 296,609

Non-controlling interests

 (4,523)

 17,524

 168,386

 314,133

Earnings per share

Basic and diluted

21

0.29

0.49

The accompanying notes form an integral part of these consolidated financial statements.

31 Mar 2023

31 Mar 2022

EGP'000

EGP'000

Net profit for the year

168,386

314,133

Other comprehensive income:

Items that may be reclassified to profit or loss:

Exchange difference on translation of foreign operations

32,453

77,308

Other comprehensive income for the period, net of tax

 32,453

 77,308

Total comprehensive income for the period

 200,839

 391,441

Attributable to:

Owners of the Company

 87,010

 310,550

Non-controlling interests

 113,829

 80,891

 200,839

 391,441

The accompanying notes form an integral part of these consolidated financial statements.

Note

31 Mar 2023

31 Mar 2022

EGP'000

EGP'000

Cash flows from operating activities

Profit before tax

 210,503

 471,347

Adjustments for:

Depreciation of property, plant and equipment

 63,717

 46,048

Depreciation of right of use assets

 32,938

 23,926

Amortisation of intangible assets

 1,913

 1,949

Gain on disposal of Property, plant and equipment

 (7)

 (4)

Impairment in trade and other receivables

 10,683

 7,178

Impairment in goodwill

 (98)

 -

Interest income

18

 (15,168)

 (45,247)

Interest expense

18

 40,387

 25,916

Bank Charges

 2,408

 7,144

Equity settled financial assets at fair value

 (4,897)

 (1,842)

ROU Asset/Lease Termination

 (237)

 1,743

Hyperinflation

18

 -

 (1,664)

Unrealised foreign currency exchange loss

18

 (109,320)

 (61,134)

Change in Provisions

 19

 (331)

Change in Inventories

 (24,065)

 (28,598)

Change in trade and other receivables

 (15,677)

 (78,311)

Change in trade and other payables

 (93,454)

 (58,801)

Net cash generated from operating activities

 99,645

 309,319

Cash flows from investing activities

Proceeds from sale of Property, plant and equipment

 584

 184

Interest received on financial asset at amortised cost

 15,113

 8,180

Payments for acquisition of property, plant and equipment

4

 (85,501)

 (33,363)

Payments for acquisition of intangible assets

5

 (944)

 (843)

Payments for the purchase of financial assets at amortized cost

 (252,163)

 (312,592)

Proceeds for the sale of financial assets at amortized cost

 177,816

 341,163

Net cash generated from/(used in) investing activities

 (145,095)

 2,729

Cash flows from financing activities

Proceeds from borrowings

 54,936

 -

Repayments of borrowings

 (8,483)

 -

Payment of finance lease liabilities

 (111,994)

 (8,535)

Interest paid

 (37,011)

 (28,688)

Bank charge paid

 (2,408)

 (7,144)

Net cash flows used in financing activities

 (104,960)

 (44,367)

Net (decrease) increase in cash and cash equivalents

 (150,410)

 267,681

Cash and cash equivalents at the beginning of the year

 648,512

 891,451

Effect of exchange rate

 57,271

 69,596

Cash and cash equivalents at the end of the period

10

 555,373

 1,228,728

Non-cash investing and financing activities disclosed in other notes are:

· Acquisition of right-of-use assets - note 26

· Property, plant and equipment - note 11

· Put option liability - note 23 and 25

The accompanying notes form an integral part of these consolidated financial statements.

EGP'000

Share Capital 

Share premium

Capital reserve

Legal reserve*

Put option reserve

Translation reserve

Retained earnings

Total attributed to the owners of the Company

Non-Controlling interests

Total Equity

As 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 / (loss) for the year

 -

 -

 -

 -

 -

 -

 172,909

 172,909

 (4,523)

 168,386

Other comprehensive (expense)/ income for the year

 -

 -

 -

 -

 -

 (85,899)

 -

 (85,899)

 118,352

 32,453

Total comprehensive income

 -

 -

 -

 -

 -

 (85,899)

 172,909

 87,010

 113,829

 200,839

Transactions with owners in their capacity as owners

Contributions and distributions

Movement in put option liabilities for the year

 -

 -

 -

 -

 192,289

 -

 -

 192,289

 -

 192,289

Total

 -

 -

 -

 -

 192,289

 -

 -

 192,289

 -

 192,289

At at 31 March 2023

 1,072,500

 1,027,706

 (314,310)

 51,641

 (298,406)

 (61,726)

 955,990

 2,433,395

 406,714

 2,840,109

As 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 year

-

-

-

-

-

-

296,609

296,609

17,524

314,133

Other comprehensive loss for the year

-

-

-

-

-

13,941

-

13,941

63,367

77,308

Total comprehensive income

-

-

-

-

-

13,941

296,609

310,550

80,891

391,441

Transactions with owners in their capacity as owners

Contributions and distributions