Integrated Diagnostics Holding (IDH) saw its bottom line decline 62% y-o-y to EGP 125.6 mn in 2Q 2022 amid a drop in covid-related income as the pandemic recedes, according to its latest earnings release (pdf). The LSE- and EGX-listed consumer healthcare firm reported a 34% y-o-y decline in revenues to EGP 773.6 mn during the April-June quarter.

This was expected: Covid-related net sales fell 87% to EGP 75 mn during the quarter as infection rates continued to fall, governments ended mandatory testing regimes, and test prices declined.

Meanwhile: IDH’s conventional business is growing: The drop in covid testing was partially offset by growth in conventional sales, which rose 18% y-o-y to EGP 699 mn in the quarter. Conventional sales accounted for 90% of the company’s total net sales, up from 51% in the same period last year. Notably, conventional sales were up both year-on-year and quarter-on-quarter in 2Q despite the seasonal slowdown associated with Ramadan and the Eid holiday.

IDH remains optimistic despite economic challenges: The company, which operates in Egypt, Sudan, Nigeria and Jordan, has maintained its full-year guidance and is on track to increase revenues from conventional sales by 20% from 2021, despite supply chain snags and a high inflation environment, said IDH CEO Hend El Sherbini. “While we expect the current operational challenges to persist throughout the rest of 2022, I firmly believe that the robust mitigation measures we have put in place provide ample protection against possible future disruptions to the business.”