Integrated Diagnostics Holdings (IDH), a consumer healthcare company with operations in Egypt, Jordan, Sudan, and Nigeria, has reported a strong 19% year-on-year (y-o-y) rise in revenues to EGP 2,656m in 2020.
The latest data was released as part of its results for the year ending on 31 December 2020.
The company achieved net profits of EGP 609m, an increase of 21% compared to 2019, whilst achieving a gross profit of EGP 1,343m in 2020. This reflected a 24% increase from the 2019 gross profit of EGP 1,084m.
The company reported a cash balance of EGP 877m in 2020, compared to EGP 631 in 2019, an increase of 39%.
Regionally, Egypt constituted the largest share of consolidated revenue in 2020 at 81.8%, followed by Jordan with a 15.4% contribution. Meanwhile, revenues from Nigeria and Sudan each contributed 1.4% to IDH’s consolidated revenue for the year.
On a segment basis, the Group’s contract segment delivered 54% of revenue in 2020, while the walk-in segment contributed 46%.
Revenues were further supported by contributions from Al-Borg Scan, the Group’s first full-fledged radiology venture, which generated revenue of EGP 25m in 2020. This reflected an increase of 76% y-o-y, following the inauguration of a second branch in February 2020.
Commenting on the results, IDH Chief Executive Officer Hend El-Sherbini said, “I am very pleased with the Group’s results in 2020, during which IDH demonstrated its ability to adjust to changing market dynamics and deliver strong financial and operational performance despite the challenges.”
“In the face of the novel coronavirus (COVID-19) pandemic, we were quick to rollout comprehensive health, safety, and business continuity protocols to safeguard our people and our operations,” she added, “In parallel, we swiftly adjusted our service offering and delivery to adapt to shifting patient needs and market dynamics.”
El-Sherbini also noted that in both Egypt and Jordan, IDH began offering PCR testing and other COVID-19-related tests. At the same time, the company simultaneously ramped up its house call services in both countries, to ensure that patients unable or unwilling to visit branches in person continued to have access to services.
“I am pleased to report that IDH was able to continue growing its traditional business while pushing forward with our long-term strategic directives despite COVID-19,” El-Sherbini said, “In Nigeria, despite the temporary branch closures, we effectively capitalised on Echo-Lab’s increasing brand awareness and service demand to deliver robust growth in both patients served and tests performed.”
She added that, in Sudan, despite lower volumes on account of branch closures in the second quarter (Q2) of the year, IDH delivered a 28% y-o-y rise in revenues in local currency terms.
Finally, Al Borg Scan inaugurated its second branch during the year and continues to deliver significant revenue growth with robust profitability.
“Overall, our large operational scale, wide geographic reach, and prompt response to the difficulties posed by Covid-19 proved vital in supporting the remarkable financial and operational results delivered in 2020,” El-Sherbini added, “Looking ahead, while the COVID-19 crisis continued into 2021 our outlook for the year ahead remains strong.”
She noted that the Group is already off to a solid start in 2021, which management believes will continue through to year end. This has in part been driven by the strong fundamentals of the healthcare industry across the Group’s footprint, as well as the ramp up of vaccination campaigns across the globe.
Almost halfway into the year, IDH are confident in the Group’s ability to adapt to and overcome the most difficult challenges supported by the adaptability of its business model, the strength of its brands, and the solidity of its financial position.
“We are also particularly excited about bringing home IDH’s shares for trading on the Egyptian Exchange (EGX), one of the region’s leading exchanges and a key entry point for MENA equity and debt capital markets,” El-Sherbini said.
With trading commencing on 20 May 2021, the dual listing will offer Egypt-based investors, who are sometimes unable to access shares in London, an opportunity to capitalise on the company’s strong growth prospects, El-Sherbini concluded.
