Strong Revenue Growth#
Diagnostyka, a Polish diagnostics company, announced its fiscal year 2025 revenues reached PLN 2,410 million, marking a 23.6% increase compared to the previous year. This figure exceeded analyst expectations of PLN 2,404 million and the company’s own forecast of low-to-mid 20% growth.
Organic Growth and Pricing#
The company achieved an organic revenue growth of 17.9%. This growth was driven by a 15% increase in the average price per test and an 8.1% rise in the number of tests conducted. However, the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew at a slower rate of 15.3%, totaling PLN 586.4 million, which was 5% below the consensus estimate of PLN 616 million.
Margin Challenges#
The adjusted EBITDA margin decreased to 24.3% from 26.1% in fiscal 2024, falling short of analyst expectations of 25.7%. This decline was attributed to several factors, including changes in the business mix, consolidation of diagnostic imaging operations, increased personnel costs due to new wage regulations, and a significant rise in service costs by 41.5% year-over-year.
Future Outlook#
Net profit for the year was PLN 251.6 million, which was 8.2% below the consensus estimate of PLN 274 million. The company’s capital expenditure reached approximately PLN 205 million, exceeding its guidance of PLN 130 million to PLN 170 million. Despite these challenges, free cash flow generation remained robust at PLN 541.2 million, with a high conversion rate of 92.6%. Diagnostyka proposed a dividend of PLN 4.4 per share. Looking ahead to fiscal 2026, the company anticipates revenue growth in the low-to-mid teens percentage range and plans to maintain its adjusted EBITDA margin close to the current level.