By Hamed mahmoud
Integrated Diagnostics Holdings (“IDH,” “the Company” or “the Group,” IDHC on the London Stock Exchange), a leading consumer healthcare company with operations in Egypt, Jordan, Sudan, and Nigeria, released today its results for the year ended 31 December 2020, reporting revenues of EGP 2,656 million, up by a strong 19% year-on-year.
The robust performance in 2020 was supported by IDH’s ability to adapt its service offering to the changing dynamics by ramping up its house call services in Egypt and capturing the rising demand for Covid-19-related testing in Egypt and Jordan. IDH served over 7.1 million patients in 2020 and performed more than 27.1 million tests across its regional network of 481 branches as of 31 December 2020, adding 30 new branches in Egypt during the year.
Regionally, Egypt constituted the largest share of consolidated revenue in 2020 at 81.8%, followed by Jordan with a 15.4% contribution. Meanwhile, revenue 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 25 million in 2020, up 76% year-on-year following the inauguration of as second branch in February 2020.
Commenting on the results, IDH Chief Executive Officer Dr. 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 Covid-19, we were quick to rollout comprehensive health, safety, and business continuity protocols to safeguard our people and our operations. In parallel, we swiftly adjust our service offering and delivery to adapt to shifting patient needs and market dynamics. In both Egypt and Jordan, IDH began offering PCR testing for Covid-19 and other Covid-19-related tests, while simultaneously ramping up its house call services in both countries to ensure that patients unable or unwilling to visit our branches in person continued to have access to our services.”
“I am also 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. 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. In Sudan, despite lower volumes on account of branch closures in the second quarter of the year, we delivered a 28% year-on-year 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.
Strong consolidated revenue growth coupled with a continued focus on driving operational efficiencies and keeping a tight rein on costs saw IDH deliver margins enhancements at all levels of profitability. As such, gross profit for the year increased 24% versus 2019, with a two-percentage point expansion in its associated margin to 51%. Meanwhile, EBITDA surpassed the EGP 1 billion mark for the first time to EGP 1.2 billion for 2020, up 24% year-on-year, with an associated margin of 44% versus 42% last year. IDH’s net profit increased 21% year-on-year to EGP 609 million in 2020, with a net profit margin of 23%.
Owing to the strong performance during the year, the Board of Directors is recommending a final dividend of US$ 0.049 per share, or US$ 29.1 million in aggregate, to shareholders in respect of the financial year ended 31 December 2020. This represents an increase of 4% compared to a final dividend of US$ 28 million in aggregate in the previous financial year.
“Looking ahead, while the Covid-19 crisis continued into 2021 our outlook for the year ahead remains strong. The Group is already off to a solid start in 2021 which management believes will continue through to year end, in part 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, we are confident in the Group’s ability to adapt to and overcome the most difficult challenges supported by the adaptability of our business model, the strength of our brands, and the solidity of our financial position.”
“We are also particularly excited about bringing home IDH’s shares for trading on the EGX, one of the region’s leading exchanges and a key entry point for MENA equity and debt capital markets. 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 our Company’s strong growth prospects,” El-Sherbini concluded.