IDH earnings signals the end of the pandemic era as conventional testing on the rise: Integrated Diagnostics Holdings’ (IDH) net income dipped 46% y-o-y to EGP 168 mn in 1Q 2023, as revenues dropped 22% y-o-y to EGP 915 mn, according to the company’s earnings release (pdf). The one-quarter hit comes as covid testing is declining in the face of conventional test, which rose 43% y-o-y during the January-March quarter to EGP 915 mn.  

More tests and higher prices drive conventional revenue growth: Revenues from conventional tests rose increased on the back of a rise in test volumes and average revenue per test. IDH conducted 8 mn conventional tests, up 12% on 1Q 2022, and the average per-test price increased by 27% as the company raised prices on the back of a weaker EGP and rising inflation.

IDH expands network: IDH added 24 more branches to its network during the quarter, including 20 in Egypt, three in Jordan, and one in Sudan, bringing the total number of branches to 576. Only two of the company’s branches in Sudan are currently operational due to the conflict. Almost 80% of the company’s revenues originated in Egypt, where conventional revenues grew 33% y-o-y to EGP 731 mn. Taking the loss of covid tests into account, the group’s Egypt revenues fell 17% y-o-y.

What they said: “I am happy to report another quarter of sustained growth at our conventional business and of solid progress on our longer-term value creation and growth strategies,” CEO Hend El Sherbini said. “The 43% y-o-y expansion of our conventional business was especially impressive as it comes in the midst of an increasingly difficult operating environment with our markets, and the global economy in general, continuing to face rising inflation, tightening monetary policies, and weakening currencies.”

Saudi debut this year: The company will open its first branch in Saudi Arabia in September this year and plans to expand its radiology network in Egypt. El Sherbini said.

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