IDH continues its post-covid transition: Regional diagnostic services provider Integrated Diagnostics Holdings’ (IDH) net income declined 52% y-o-y in the first six months of the year due to falling covid-19 revenues, the company said in its earnings release (pdf) on Thursday. The company posted a net income of EGP 211 mn for the period, down from EGP 439 mn in 1H 2022, “due to significant contributions from covid-19-related testing” last year, it said.

Revenues hold up despite loss of covid income: The company’s revenues slipped only 4% y-o-y to EGP 1.87 bn in 1H 2023 as solid growth in conventional revenues partially offset the loss of covid-related income. IDH’s conventional revenues rose 40% y-o-y to EGP 1.87 bn during the six-month period on the back of higher test volumes and price hikes, softening its exposure to falling covid revenues, which fell to zero. The company performed 16.5 mn conventional tests during the period, up 13% on last year, while average revenue per test increased 24%.

Egypt drives growth: Egypt remained IDH’s largest market, contributing 80% of total revenues. Conventional revenues in Egypt climbed 33% y-o-y on the back of a 14% rise in test volumes. Conventional revenues in Jordan, which accounted for almost 16% of the company’s total top line, rose 88% in EGP terms due to a rise in average per-test prices on the back of the EGP devaluations.

What they said: Pointing to “robust 40% year-on-year growth in conventional revenues” in the first half, CEO Hend El Sherbini said, “The accelerating growth, which we observed continue into July and August, displays the resilience of demand for our service offering despite the continued inflationary pressures impacting our patients and leaves us in a strong position heading into the second half of the year.”

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