Integrated Diagnostics Holding (IDH) saw its bottom line fall 8% y-o-y in 1Q 2022 due to rising sales costs, according to its latest earnings release (pdf). The medical diagnostics company reported net income of EGP 314 mn during the quarter, down from EGP 342 mn in 1Q2021.

Meanwhile, revenues rose 5% to EGP 1.18 bn despite a fall in covid-related income. And while revenues in Egypt fell 4% to EGP 879 mn, they still accounted for 79% of its net sales.

Conventional business is growing, offsetting falling demand and lower prices for IDH’s covid-related services, the company noted. The company reported an 8% increase in conventional test net sales, which brought in EGP 640 mn during the quarter and accounted for 57% of the company’s net sales. This offset a drop in covid related-revenues, which fell 11% to EGP 477 mn on declining prices and falling demand. As a result, net sales fell 1% from a year ago.

Riding out the storm: IDH has locked in stock at pre-devaluation rates until the end of June, and said it would “continue to leverage our long-lasting relationships with test kit providers to secure additional stock at competitive prices, shielding our business from the impacts of rising inflation and the EGP devaluation.”

IDH forecasts strong revenue growth this year despite challenges: The company is facing “difficult operating conditions” due to the spillover effects of the Ukraine war, the EGP devaluation and the pandemic, it said, but is still forecasting 18-20% revenue growth this year.

More expansion to come: Having added another 37 branches over the past year, IDH is looking to open at least two more branches in Egypt in the coming months and is awaiting regulatory approvals to begin their entry into Pakistan through the acquisition of Islamabad Diagnostic Centre.