Diagnostyka medical assumes maintaining EBITDA profitability in 2025 (interview)

"Looking at the whole of 2025, we are rather talking about stable year-on-year EBITDA profitability. On the other hand, in the medium term, I see room to work on improving EBITDA profitability through, among other things, optimisation measures, further expansion in the imaging diagnostics sector and the operating leverage effect, i.e. better cost absorption thanks to growing volumes," CFO Chytla told PAP Biznes.

He added that the group was under pressure from rising labour costs and limited availability of medical staff, which posed challenges to maintaining current profitability. Chytla explained that these factors have, however, been factored into the financial assumptions and are offset by a steady increase in the average price of tests.

The group's recurring EBITDA margin increased by 2.0 percentage points to 26.1 percent in 2024.

"We are looking optimistically to the second half of 2025 and stand by our financial ambitions outlined during the IPO, results conferences and meetings with investors and analysts. We finished the first half of the year in line with budgeted targets, which confirms the consistent implementation of our growth strategy," Chytla assessed.

In the first quarter of 2025, Diagnostyka's EBITDA amounted to PLN 159.3 million (EUR 37.45 mln) and operating profit was PLN 112.2 million (EUR 26.4 mln). Recurring EBITDA rose by 18 percent to PLN 161.2 million (EUR 37.9 mln).

Operating revenue increased by 22.5 percent year on year to PLN 594.9 million (EUR 139.9 mln), including revenue from contracts with customers rising by 23.1 percent year on year to PLN 591.6 million (EUR 139.1 mln).

In the first quarter, Diagnostyka reported an 8.3 percent year-on-year increase in test volume to 45.2 million. The average price of a test increased by 14.1 percent in annual terms.

As Chytla reported, the management observes positive market trends supporting further sales growth regardless of public programmes.

"There is a systematic increase in the average price of tests supported by a favourable product mix - including significant price increases for genetic and histopathology tests - and the start of consolidation of imaging companies," he said.

"We are favoured by demographic factors, increasing demand for services and greater public awareness of preventive healthcare. We are offsetting rising labour costs with adequate service price adjustments without negatively impacting test volumes," the CFO added.

The group's 'Prevention 40 PLUS' programme ended in April and was replaced by a new initiative, the 'My Health' programme, based on a different premise. According to the deputy CEO responsible for Diagnostyka's finances, at this stage it is difficult to assess its impact on the group's sales performance, but the management is optimistic about its development.

Diagnostyka sees the diagnostics market in Poland as very promising.

"In terms of spending on diagnostics, we have significant growth potential. Per capita expenditure in the laboratory testing and diagnostic imaging market in Poland is significantly lower than in Western European countries, which indicates significant room for further growth in both segments in the coming years," Chytla assessed.

"Additionally, Poland is characterised by a higher growth rate than Western countries. According to Bain & Company's forecasts, the imaging diagnostics market in Poland is expected to grow at a CAGR of around 10.4 percent until 2030, while laboratory diagnostics is expected to grow at a CAGR of 9-11 percent. This confirms that we are in a dynamic development phase with high growth potential," he added.

According to CFO Chytla, the group has assumed an M&A budget in the range of PLN 80-100 million (EUR 18.8-23.5 mln) for 2025. It continues to acquire laboratories but is focusing more strongly on entities in the diagnostic imaging sector.

"Our ambition is to become one of the leading players in this market. We see significant growth potential in diagnostic imaging especially in the context of the growing demand for modern tests and the dynamic development of advanced technologies," he said.

"In April 2025, we completed the acquisition of Eurodiagnostic for PLN 23 million and in July we completed the acquisition of two small businesses operating in diagnostic imaging. We are currently in further acquisition talks. We are in contact with several potential targets, although, as always in M&A processes, not all negotiations end in a transaction," the CFO pointed out.

Pawel Chytla explained that Diagnostyka plans to pursue acquisitions based on its own funds and external bank financing. He excludes the possibility of raising external financing in the form of a share issue.

According to Diagnostyka's CFO, the market situation is conducive to further consolidation.

"The consultancy firm Bain&Company estimates that there are still more than 300 small diagnostic laboratories and around 50-90 entities operating in the imaging diagnostics sector in Poland," he said.

"We are focusing on entities in diagnostic imaging that strategically fit to further diversify and expand our offering," Chytla added.

The Diagnostyka group provides medical diagnostics services through a network of laboratories and outlets in Poland. Its offering includes laboratory tests, including basic, specialised, cytological, histopathological, microbiological and genetic tests, as well as imaging diagnostics.

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