IDH net income more than quadruples in 2Q2021
Integrated Diagnostics Holdings’ (IDH) 2Q2021 net income more than quadrupled y-o-y to EGP 326.6 mn ion 2Q2021, from EGP 72 mn in the same time last year, according to the company’s earnings release (pdf). This significant growth came on the back of a surge in revenues, which more than doubled to EGP 1.2 bn from EGP 450 mn in 2Q2020, as the company said the market continues to recover from the impact of covid-19.
Covid tests underpin revenue growth: IDH’s top-line growth during the quarter was driven by a near-6x increase in covid test revenues, which hit EGP 569 mn from EGP 83 mn in 2Q2020. Conventional tests also experienced growth, rising more than 60% to EGP 595 mn.
Egypt is still by far the company’s largest market: Revenues in Egypt rose 166% to more than EGP 1 bn on the back of a huge rise in covid tests, which brought in EGP 504 mn during the quarter, up from EGP 67 mn last year. In comparison, revenues in Jordan almost doubled to EGP 324 mn and rose 68% to EGP 25 mn in Nigeria. IDH also attributed its Egypt growth to the growing popularity of its house call service, revenue growth at Al Borg Scan’s and its Wayak app.
Looking ahead: The company plans to launch at least three new Al Borg Scan branches in Egypt over the coming year, and expects to stay in the black thanks to its expanding operations. It is also looking to sign strategic agreements with international airlines to provide carriers to perform PCR tests for passengers. IDH companies include Al Borg and Al Mokhtabar in Egypt as well as subsidiaries in Jordan, Sudan, and Nigeria.
The LSE listed IDH debuted its shares on the EGX in May in a technical listing that sought to make the company’s equity more accessible to domestic and regional investors.