Integrated Diagnostics Holdings (IDH) is witnessing an increasing demand for novel coronavirus (COVID-19) tests, which has boosted the company’s profit growth, according to the company’s Chairperson Hend El-Sherbiny.
There has also been a recovery in the number of other diagnostic testing taking place, with the easing of precautionary measures in Egypt and Jordan, El-Sherbiny added.
She noted that the company is working to increase diagnostic tests, and will try to increase services to the largest number of patients.
El-Sherbiny revealed a plan to expand into new markets, such as Africa, the Middle East, and Asia, through acquisitions. This is especially as the market’s fundamentals maximise the investment returns.
She did not specify the size of the investments to be injected, but she confirmed that an International Finance Corporation (IFC) loan amounting to $47m would be used for this purpose.
El-Sherbiny said that the value of the company’s shares is very low compared to the value it should be, but that investors and the general public are aware of the company, which has been present in the Egyptian market for more than four decades, mainly through the Al-Borg and Al-Lab labs.
Omar Al-Badawi, Group Financial Director, said that the loan would improve the return on equity, and stressed that the company has a number of acquisition opportunities that it is currently studying and will be revealed successively.
During a conference to discuss business results at the company’s headquarters in the Smart Village, he also stressed that the company is consistent in its dividend policy. This sees almost 100% of annual profits distributed, unless there is a need for funds to be pumped into investment opportunities.
He added that the company plans to distribute $29.1m this year to shareholders.
Meanwhile, Nancy Fahmy, the company’s Director of Investor Relations, reviewed is business results in detail. She indicated that IDH has a presence in four countries, namely Egypt, Sudan, Jordan, and Nigeria, through seven brands. Egypt represents 81.5% of revenues, followed by Jordan with 16.7%.
She also indicated that the company currently provides more than 2,000 analyses and tests, serving seven million customers through 30 million tests.
Fahmy explained that the company performs more than 20,000 tests per hour in the largest central laboratory in Egypt.
She identified four pathways for the company’s growth, which are represented in an annual increase in the number of branches by about 30 to 35 branches.
This is in addition to an increase in the number of tests that are conducted, amounting to about 2,000 different types of analysis and testing.
She added that the company seeks to increase its geographical presence and penetrate new areas. The final axis is the increase in the number of medical services, which started with analyses and ended with the addition of radiology services.
