Back to the complete issue
Tuesday, 13 September 2022

IDH adapts to “post-covid” era, sees conventional sales rise as covid-related sales slide

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.”

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.