Diagnostyka expects single-digit growth in test volumes and maintained profitability in ‘25

"In terms of volumes, we will see increases at the high single-digit level year on year, which will be driven by our organic growth and market trends. In terms of prices, the average price will increase at around 10 percent year on year," deputy CEO Pawel Chytla told a videoconference when asked about the outlook for test volumes and prices for 2025.

The company reported an 8.3 percent year on year increase in laboratory tests volume in the first quarter of 2025 to PLN 45.2 million (EUR 10.6 mln).

"We are growing strongly in terms of volume, over 8 percent (...) The 'Profilaktyka 40 PLUS' programme had a significant impact, while let's not forget that it accounted for 4 percent of our results in the first quarter, so we are also talking about organic growth of important customers," deputy CEO Chytla pointed out.

"Prices are also increasing. This is the impact of the product and customer mix, while prices are actually increasing. These are not increases introduced in the first quarter, our process of price increases is continuous," he added.

The group's income from operations amounted to PLN 594.9 million (EUR 140 mln), up 22.5 percent year on year, including revenue from contracts with customers of PLN 591.6 million (EUR 139.3 mln), up 23.1 percent year on year.

"Revenues increased (...), which was related, among other things, to inflationary pressures (...)," Diagnostyka's CEO Jakub Swadzba added.

In April, the 'Profilaktyka 40 PLUS' programme was terminated, being replaced with a new initiative, the 'Moje Zdrowie' programme, based on a different guidelines and objectives.

"From a financial performance point of view, this is not significant, but we anticipate that the 'Moje zdrowie' programme will have a less positive impact on us than the previous programme. (...) We assess this project overall negatively, although the grounds for its introduction were good," CEO Swadzba said.

"It seems that the mechanisms introduced in it will not work and the programme will have to be adjusted and will not be a universal programme," he assessed.

The company expects a positive impact from the change in the cervical cancer prevention programme.

The management expects to maintain profitability levels in 2025.

"We are rather talking about a stable EBITDA margin as at the end of 2024 (...) I would expect a similar level of profitability in the current year," Chytla said.

In 2024, the recurring EBITDA margin increased by 2.0 percentage points to 26.1 percent.

The presentation stated that at the end of the first quarter of 2025, the group had available cash of approximately PLN 330 million (EUR 77.7 mln).

According to the management, acquisition expenditure was put on hold in the first quarter due to the IPO process, but acquisition-related activities have been continued since the second quarter.

doa/ nl/ ao/