Integrated Diagnostics Holdings (IDH), a healthcare diagnostics service provider with operations in Egypt, Jordan, Sudan, and Nigeria, reported on Wednesday a record year-on-year growth of 230 percent in net profit for the first quarter of the year.
Net profit stood at 339 million Egyptian pounds (US$21.5 million), according to the IDH’s statement.
Revenues also rose 126 percent year-on-year to 1.130 billion pounds in the first three months of 2021.
According to the statement, IDH has served a total of 2.4 million patients in the first quarter of the year, up 50 percent compared to the same period a year ago. It has also conducted 8.1 million tests, a 32 percent year-on-year growth. The group served its patients from its growing network of 483 branches as at 31 March 2020.
The impressive performance in the first three months of the year was primarily supported by IDH’s COVID-19-related test offering as the group continued to play its role in the fight against the pandemic across its markets, the statement read.
Excluding revenues generated by IDH’s COVID-19-related testing from the quarter’s performance, consolidated revenue increased 20 percent year-on-year, in line with the company’s historical averages and displaying a sustained recovery in the group’s non-COVID-19 business.
Egypt’s contribution to IDH revenues
IDH’s consolidated top-line was also supported by its ramped-up house call service in Egypt and Jordan, which contributed to 23 percent to consolidated revenue for the quarter compared to 12 percent in the first quarter of 2020.
Regionally, IDH statement pointed out that Egypt contributed the lion share of consolidated revenue in the first quarter of 2021 at 81 percent, with the country’s revenues expanding 117 percent year-on-year.
The group’s Jordanian operations continued to be the standout performer in the first quarter of 2021 as revenues more than tripled year-on-year and with the country contributing to 17 percent of total revenue versus the 12 percent contribution this time last year. In Nigeria, IDH witnessed robust 44 percent year-on-year top-line growth as volumes continue their steady rise. Finally, in Sudan, despite a remarkable 74 percent year-on-year revenue expansion in local currency terms, the sharp devaluation of the Sudanese pound during the quarter weighed down on the country’s results, which in the first quarter of 2021 made up just 0.6 percent of IDH’s consolidated top-line.
On a segment basis, the group’s contract segment delivered 53 percent of revenue in the first quarter of 2021, while the walk-in segment contributed 47 percent, the statement added.
“IDH started the new year building on the strong momentum from 4Q 2020 and leveraging an expanded service offering and delivery capabilities to drive exceptional top-line growth and improvements in profitability.” Hend El-Sherbini, chief executive of IDH, said.
“In particular, our conventional test offering delivered a strong 20 percent year-on-year revenue growth, which is in line with our historical averages and signals a consistent recovery of our non-Covid-19 business. Combined with the significant revenue generated by our COVID-19-related test offering, we recorded an impressive 126 percent increase in consolidated revenues versus the comparable quarter of last year.
“In Egypt and Jordan, we continued to record exceptional revenue growth mainly on the back of strong demand for our COVID-19-related offering, along with double-digit test volume and revenue growth in our non-COVID-19 business across both geographies as restrictions related to COVID-19 were eased.
“Volume growth continues to be supported by our multi-pronged expansion strategy which aims to widen and diversify our medical service offering, expand our geographical reach, and strengthen our digital offering and delivery capabilities to ensure that we provide access to as many patients as possible. On the latter, we continued to witness strong contributions coming from our home call service, which we successfully ramped up in both countries to provide additional support to patients during the COVID-19 crisis.
“Egypt’s performance was further bolstered by our radiology venture, Al-Borg Scan, which reported a remarkable 122% year-on-year rise in revenues supported by the addition of the new services to our roster coupled with contributions from Al-Borg Scan’s second branch which was launched mid-way through the first quarter of last year,” El-Sherbini added.
Strong consolidated revenue growth and improved operating leverage saw IDH deliver margin enhancements at all levels of profitability, the statement read.
Gross profit for the quarter was up 162 percent year-on-year with an associated margin of 57 percent versus 49 percent in in the first quarter of 2020. EBITDA expanded 189 percent year-on-year with an EBITDA margin of 52 percent in the first quarter of 2021, versus 41 percent last year, supported in part by narrowing EBITDA losses in Nigeria. Finally, IDH’s bottom-line recorded a 230 percent year-on-year increase with a net profit margin of 30 percent versus 21 percent in in the first quarter of 2020.
“Looking ahead, while the Company’s immediate focus remains on continuing to play a frontline role in helping governments across our footprint combat the ongoing COVID-19 pandemic, IDH’s longer-term outlook remains strong as evidenced by the recovery of our conventional business witnessed in the first quarter of 2021.” El-Sherbini said.
“Our priorities for 2021 and beyond are the continued expansion and diversification of our test portfolio, geographical reach, and digital offering to ensure that we provide access to high-quality diagnostic services to as many patients as possible.
“In parallel, we are also pressing forward with our expansion plans into new geographies. More specifically, we are seeking value-accretive acquisition opportunities in African, Middle Eastern, and South Asian markets where our business model is well-suited to capitalise on healthcare and consumer trends similar to those prevailing in our existing markets.
“To support our expansion ambitions, in May 2021 we secured a US$45 million loan from the International Finance Corporation (IFC). Through this new eight-year debt financing agreement, we are once again reinforcing our commitment to the healthcare sector across emerging markets, delivering on strategy and ESG goals to provide communities with the tools they need to better their lives,” El-Sherbini concluded.
