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The floor is over to Jakub Swadźba, our CEO. Good morning, everyone, and welcome very warmly. It is my pleasure for the second time to present the quarterly results of our company after a very successful IPO. As we promised, our company is a stable business that delivers. As you can see on the slide, our highlights, facts and figures are compared to the previous year. The volume of our tests went up by 7.7% year-on-year. However, our profit went up by as much as 14.5% versus the previous year, going up by PLN 63.8 million, which is also related to the fact that we are moving towards more expensive tests as we promised, towards diagnostic imaging tests, which represent a smaller volume, but in terms of value they represent a higher amount.
Looking at the volume and the revenue, as you can see, our revenue has been growing and has grown even more by 22.5%. The largest increase by percentage versus last year is EBITDA, which has gone up by PLN 152.9 million or more than 24% year-on-year. As far as our highlights in the Q2 are concerned, as we promised, in accordance with our dividend policy, we paid out dividend at 50% of our group's profits, or more specifically PLN 111.7 million. That is 3.31 PLN per share.
In terms of our more business specific highlights, medical highlights in the Q2 and in the second half of the year, we saw a change in terms of the preventive screening program sponsored by the National Health Fund. The 40 PLUS preventive screening program came to an end, which was a very important program for Poland and also reflected our market share, which represented 50% for privately owned companies. Our total market share together with the hospitals are at 24%. The program I was talking about required a lot of involvement, a lot of effort from us because we competed with the state-owned hospitals and health centers. We are now accounting for 50% of.
We represent the 50% of those tests and the millions of people actually benefited from our services under this project. We have launched a second project now, My Health. On the one hand it is less accessible to the patients because it has to go through a medical practitioner first, general physicians. I expected the interest to go down, but it turns out it wasn't true. More than 1 million people actually enrolled into the program in the first 3 months of the year. What really makes us happy is that a lot of young people were interested in this program who previously did not have any access to the previous program, 40 PLUS program, but the program is open to them as well.
The people aged between 20 and 40 are really interested in the program now. Another program that is really successful is the long awaited change and upgrade of the cervical cancer preventive program. We are now moving towards molecular tests for the HPV virus. We remember that the world-class standard is now proposed LBC, liquid-based cytology. We do not have specific data to show you in terms of the number of people that are taking part in the program, but we are there. We are present and as the only company we were able to qualify in all 16 provinces of Poland. All around Poland, patients can now take part in our program for the preventive screening of cervical cancer.
We are the only company that has such a nationwide coverage. We'll be happy to show you the results soon, as the only company taking part on a national scale in this program. On the one hand therefore, we have a normal growth in terms of prices and volumes, especially in terms of diagnostics. Obviously we have an increase in salaries and wages according to the new Polish law, which introduces a higher minimum wage in the healthcare sector. In addition to the organic growth, we also have a M&A growth. In the Q2 , it was broken down equally, 50-50, between the acquisitions in the laboratory diagnostics and three in imaging diagnostics. This is a big picture view of our company. As I said, we are progressing as planned.
Moving on to the details, I'll give now the floor over to Mr. Paweł Chytła to discuss financial highlights. Good morning. I'm very happy to have the opportunity to discuss our financial performance in the Q2 of 2025. Let us start with the revenue. We are keeping a very strong revenue growth in quarter 2, representing around 23% or PLN 1.18 billion. We are at the level that we were at last year. Let me remind you that the dynamics for 2024 was at 23.1%. However, we have certain discrepancies versus our expectations during the IPO. Let us not dive too deep into details.
However, it is good news for our business that the diagnostics, imaging diagnostics market has been slowing down a little bit as expected. The slowdown of this market is not as high. It is prolonged. We expected our organic growth will be between high single digits, low double digits. We are growing versus last year, and we have grown by around 17%. Well, if you look at the screen, you will see those results. We are growing a little bit faster. We reported 70% growth in laboratory diagnostics. However, in order to keep up with this growth, we are expanding in the imaging diagnostics segment, which adds and contributes to our revenue. We are also talking about a slightly different mix in terms of the channels.
Both B2B and B2C last year in MLT grew by around 23%, so pretty equally. However, this year we are looking at a faster growth in B2B. On the one hand, it is due to very solid sales in the 40 PLUS program in the first four months, record high as it was. This is not the main contributor because the 40 PLUS program presented only around 4% of our revenue. We do not have the specific data on the current market situation. However, according to our estimates, the market, both public and private market, but mainly the private market in terms of B2B, has been growing and expanding. We're talking about big, large-scale private networks.
Let me add at this point that we have the stronger legal framework in Poland and more activity of general practitioners, family doctors under the comprehensive program. They are involved in diabetes and cardiovascular preventive health programs. The doctors have more opportunities to diagnose paid patients via the National Health Fund-operated programs. Our growth is determined by a very strong growth in volumes and prices. We're talking about a growth in volume, which is lower than last year, which we expected because our volumes last year grew by 15%, almost 15% year-on-year. In terms of imaging, diagnostic imaging, it does not add too much. In terms of volume, the contribution is low.
However, a lot has been going on in terms of the prices. As you can see in the table in the MLT segment, if we compare the situation year-on-year, the price grew over 9%, and the same applies to quarter-on-quarter comparison. This increase in prices is higher than last year because last year we grew 7.3% in terms of prices year-on-year. On the one hand, it is due to the fact that we are actively managing our prices. On the other hand, as Jakub mentioned, we are experiencing some pressures, price pressures, and this year we have a high increase of minimum wages in the medical sector. Therefore, we need to remember about our profitability and the increase in prices.
We have also started consolidation of DI companies, and also this was reflected in our performance. We're talking about an almost 14% increase year-on-year if we add the consolidation of diagnostic imaging companies. In terms of the dynamics of our operating expenses in the Q2, we see that the situation is a little bit better. In terms of our year-on-year dynamics and the dynamics of costs growth versus revenue growth, it turns out that operating expenses showed a lower year-on-year growth than the revenues. We started building our cost base in the Q2 , building new structures, new departments in the company, preparing ourselves to operate as a public company.
Looking at the quarter-on-quarter comparison, main cost categories such as services, salaries and wages, employee costs. This dynamic, these costs grew slower. We have a positive good news here in terms of the leverage. If we compare the two halves of the year, the biggest cost category, that is employee benefits expense. We are talking about quite a large cost category here. Those costs are growing slower than revenues as well. In terms of services costs, this is also related to the consolidation of DI companies because the highest costs there are the services of radiologists and other specialists.
Having this on the back of our heads in terms of our expenses, we can now translate it into high recurring EBITDA growth over 21% if we compare the two halves of the year 2024, 2025, and we're talking about the growth to PLN 314 million . This is a solid growth for the quarter, 26%, for the first half of the year, 26.6%. We expect that we will maintain our profitability at the last year's level. If you look at the EBITDA bridge, you can see that throughout the first half of the year, the most negative contribution came from the purchases of services, which was due to the consolidation of DI companies.
We see higher margins within the group in terms of employee benefits costs 1.1%, and this is due to the financial leverage coming mainly from our laboratories. Looking at our net profit, the net profit has been growing slower versus recurring EBITDA because we're talking about dynamics of 14% year-on-year, 25 versus 24 for H1 year-on-year. First of all, this is due to high dynamics of depreciation and amortization, which is mainly due to the consolidation of the DI companies. We are speaking here about a business that is capital intensive, and we have a lot of fixed assets there in property, plant and equipment. Therefore, depreciation and amortization structure has changed a little bit over the first half of the year.
Secondly, the slower year-on-year growth in net profit came from the loss of PLN 4 million year-on-year on finance income. First of all, we had no positive impact of IRS that we use to hedge our bank borrowings. We saw a big positive impact of this particular element in 2024, but not in 2025. This is why our finance income went down. Secondly, we reported PLN 0.5 million gain on the sale of a subsidiary. We're talking about the laboratory in Ukraine. So that was a gain of 0.5 million again in 2024. Another reason is a year-on-year growth in finance expenses, especially on the consolidation of diagnostic imaging companies and higher lease interest expense.
This does not have any impact, material impact on our leverage and on our financial situation across the group. Last but not least, our net profit in the first half of 2025 depended on income taxes. In 2024, we reported an R&D tax relief for the year of about PLN 4 million, which drove down taxes and the tax charges in 2024. However, this year, in the first half of 2025, we did not recognize this relief. We are planning to do so. We are planning to recognize this R&D tax relief for 2023, 2024, and 2025 at about PLN 4.5 million, and this effect will be seen only in quarter four, 2025.
Therefore, we expect that what you see here on this slide in terms of income taxes will be reversed in the second half of the year. We will recognize more than PLN 10 million in terms of R&D relief. We expect that the effective income tax rate will be, in the end, even lower than 2024. Moving on. We see that our cash flow is really robust, even more robust than in the previous quarter and in 2024. Free cash flow to EBITDA is very, very strong at 107% in Q2, and 94% in the first half of the year, which is due to first of all, the fact that we saw a lot of receivables coming from the Q1 still.
This is why we recognize such high free cash flow to EBITDA, and it was reflected in the entire first half of the year. Therefore, receivables days in receivables went up, so receivables turnover ratio went up year-on-year in terms of the first half of 2025 versus the first half of 2024. This is why we saw such high free cash flow dynamics. Secondly, our cash conversion ratios are so high because of the impact of the income taxes that we paid. In 2024, we paid income taxes on a monthly basis, based on monthly settlements. However, in 2025, we moved on to lump sum settlements, and right now, obviously, according to the regulations, we are calculating our taxes in a different way.
Therefore, our tax charges are a little bit lower, which will be settled at the very beginning of 2026. If we look at our cash flow bridge in the bottom part of this slide, we can see that our cash situation is very strong with cash conversion at a very stable level and free cash flow to EBITDA as well. We spent around PLN 106 million in the Q1 and throughout the year as well, according to the expectations. Both operational and M&A CapEx will be similar to the level we communicated during the IPO. So far, we spent PLN 70 million on operating CapEx and 30 million on M&As. The operational CapEx represents mainly the building of a new laboratory in Bydgoszcz, new blood collection points.
We have a new project in the pipeline, the purchase of new real estate, which will be upgraded next year to adjust them to our new strategy. I'm talking about laboratory in Gdynia. We extended PLN 70 million in loans to all our subsidiaries and associates that are non-consolidated. We have leases at PLN -75.4 million. In terms of our borrowings, they represented around 30 million, short of 30 million, and this strong free cash flow will allow us to operate without any additional borrowings and will allow us to pay out a dividend at 50% of our profits to the parent company's shareholders. We are progressing with our dividend policy as planned.
Right now, we have really strong cash flow, and we are really on the safe side here. We have more than PLN 200 million in free credit limits. In the quarters to come, these free credit limits will allow us to go on with our policy, with our M&A CapEx, with our spending plan, for instance, on the laboratory in Gdynia, and also on new acquisitions of businesses, especially in diagnostic imaging. We have solid cash flows and available cash. As I said, working capital contributed to our financial situation and to our strong free cash flow to EBITDA ratio. If we compare the Q2 to the Q1 of the year, we are talking about PLN 20 million received under receivables.
We are talking about an improvement in terms of days sales outstanding by over 2 days. In terms of cash conversion cycle, it's improved by almost 3 days, which was due to better sales outstanding. We have cash. We pay our dues as they come. Obviously, we have to remember about the mix of our suppliers. Looking at quarter-over-quarter comparison, we see that our cash conversion cycle went up by 4 or 5 days. It has an impact definitely on our situation. Our net debt is as planned. Our net debt to EBITDA is less than 2, 1.8 to be more specific.
In quarter two, in terms of absolute amounts, it went up slightly. Our net debts went up slightly to PLN 981 million on the back mainly of bank borrowings. However, our net debt to EBITDA ratio is at a very, very safe level still. A couple of words about our outlook for 2025 in general. As I said before, in terms of our revenue, we will see the results that will be a little bit lower than communicated during the IPO. We're talking about low 20s% dynamics. We believe that the dynamics that we reported after the first half of the year to stay at the same level until the end of the year.
In terms of the prices and volumes, I believe that in the second half of 2025, we will continue our trends from the first half of the year at low teens for test selling prices, the average test selling prices. It was at 8% after the first half of the year. In terms of our profitability and the EBITDA, recurring EBITDA margin, I believe that it will come in close to 2024. In the first half, our profitability, our margin went up slightly year-over-year, especially in the Q2 . However, let me remind you that as of July, we have seen the introduction of quite high increases in salaries and wages in the medical sectors. So this was budgeted. It came as no surprise for us.
We are talking about around PLN 2 million–PLN 3 million per month as of July. I expect our margin, our profitability in the second half of 2025 to be a little bit lower than in the first half of the year. Therefore, our 2025 in general, the margin in general will be close to 2024. In terms of our CapEx and M&As, I believe that it will be close to what we communicated during the IPO. CapEx, excluding M&As, will be at about PLN 100 million–PLN 150 million, and M&A CapEx will stand at about PLN 80 million–PLN 100 million. We have spent about PLN 40 million to date, but I expect that we will spend more on M&As.
We bought 6 businesses in the first half of the year, 3 in MLT and 3 in diagnostic imaging. As we communicated last time, by the end of August, we have bought 9 businesses in general. We are progressing as planned with our M&A strategy, M&A strategy. In the Q3 , we bought 2 new small businesses in diagnostic imaging and 1 business in genetic diagnostics. We expect the M&A CapEx for 2025 will be as communicated during the IPO. In terms of net debt to EBITDA, we expected to hover about 1.5-2. We expected it to be below 2, and we stick to our promises. This will be all in terms of our financial performance in the Q2 .
Thank you very much for your attention, and now we can move on to the Q&A session. The first question refers to the cervical cancer preventive program. What is the scale of this program and the nominal expected impact on your revenue in 2025 and 2026? I'm not prepared to answer any financial questions, strictly financial questions. In terms of the amounts and relating to the tests, genetic tests and the prices, we're talking about 200 PLN per test, as far as I remember. What would the theoretical participation be? As far as I remember, we have no limits here. The preliminary amounts according to the budgets were not that high. Single digit or low double digits, according to the provincial National Health Fund centers.
In terms of the interest among female patients, I believe that the program is very popular among gynecologists and the patients. I believe that the amounts will be very satisfactory, and the final figures will be very satisfactory. I do not know the details now. We have tests, we have patients, but in terms of how it translates into our financial results, it is quite difficult to predict. In hindsight, you can look at it, you can see it, as you can see during our presentation, but it is difficult to predict. We wouldn't like to give you any details which are not accurate. We are very happy. We won a lot of tenders.
The volume is pretty high, about 100,000 tests per month at an attractive price. We could be talking about several million or more, but we will not drop any figures, any amounts here because we cannot expect the volumes in the months to come really. Could you dive a little bit deeper into B2B and B2C channels in terms of growth and volumes and growth and prices and the organic growth in the Q2 by segment? I would expect that the dynamic in the second half of the year will be similar to the first half of the year, both for B2B and B2C, we talked about it when we discussed this slide concerning our volumes.
In MLT, we are talking about 7% for MLT, and I expect that we will see such a level in the second half of the year. In terms of B2B, I believe that the volume growth will be similar at around 8%, but we have higher price increases. In terms of value, the increase will be higher for B2B than for B2C. In general, I can tell you that the second half of the year depends on or is determined by the month of December. We have a holiday break, so people do not think about testing themselves in December. This is reflected in the performance for this particular month. Obviously, it does not impact our constant growth and the M&As and everything that improves our performance.
You have to have that in the back of your head, that the month of December presents a certain liability, so to speak, on our performance in the second half of the year and on the Q4 of the year in general. A question on M&A. What is the scale of companies that you're looking for, small size, mid-size? What is your M&A pipeline? Nothing has changed since our IPO. We are interested in the acquisition of mid-sized company mainly, but we are also looking at small-sized companies. Also, we do not have to take over 100% of those companies. We can have a joint share. Our M&A policy has not changed versus what we presented during the IPO.
Another question on the impact of the nominal impact of the 40 PLUS program on your revenue in Q2. Mr. Chytła talked about it before. Mr. Swadźba actually talked about it before, but there is a question, could you dive deeper into this program and into the new program, My Health program? Sales was lower, obviously, for the 40 PLUS program, because as far as I remember, it came to an end at the end of April. The impact of this program lasted only for 1 month. It was an intensive period, so the patients took every opportunity to enroll and take part in the program that was about to be finished. Half of the quarter was impacted by the first program. We are talking about the 40 PLUS program.
In terms of the second half of the quarter, we did not see any influence yet, because first you have to enroll into the new program, wait for the appointment and have the test. We are now waiting for the results, so we cannot give you any actually large numbers or amounts for this program yet. Which level of or what level, nominal level of revenue do you expect in diagnostic imaging over the year? The answer is about PLN 100 million. The last question concerns your dividend policy. Will you stick to your dividend policy or do you see any space to change it, having in mind, having in the back of your head your solid performance? The financial policy stays the same.
That is the payment of about 50% of our profits, because as you can see, we have M&As in the pipeline. We still have a certain level of debt, which is pretty expensive despite the fact that interest rates are going down. Those two drivers are important, and that is why we do not see any opportunity or any actually possibility to increase the level of dividend. The last question on the reported EBITDA, recurring EBITDA in Q2. We had the last charges related to the IPO process. The difference between the recurring EBITDA and full EBITDA comes from transactional, purely transactional costs due to the IPO. We will not see that influence and those costs in the Q3 .
Last question concerning the cost of materials in the Q2 , will you expect a similar dynamic of costs in the second half of the year? For materials and consumables, we believe that we can expect similar dynamic in the first half of the year. These costs grew 18% year-on-year, slower than the growth in revenue. This is related to our mix. We are negotiating the prices of the main reagents over the year. For the year. This is all about the mix. In addition, if we compare to the dynamics of material costs and the dynamics of our revenue, we consolidated diagnostic imaging into our group, which does not have such high costs of materials compared to MLT.
We expect that, the dynamics in terms of cost of materials can be comparable, as in, the first half of the year. Thank you very much for your participation, and if you have any further questions, please contact our investor relations department. Thank you very much and goodbye.