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Integrated Diagnostics Holdings: A strong start supported by revenues from Covid tests and margin expansion

  • IDHC reported 1Q21 revenues of EGP1,130 million, up 126% YoY and up 14.6% QoQ.
  • Bottom-line surges on robust top-line growth coupled with margin expansion
  • Covid-related tests boost annual top-line growth

A strong start for the year

IDHC reported 1Q21 revenues of EGP1,130 million, up 126% YoY and up 14.6% QoQ. Net profit came in at EGP339 million for the quarter, a surge of 232% YoY and a rise of 44.6% QoQ, translating to a NPM of 30.0% (+9.6pps YoY, +6.2pps QoQ). IDHC operated a network of 483 branches in 1Q21 (across Egypt, Jordan, Sudan, and Nigeria), compared to 481 branches in 4Q20 and 457 branches in 1Q20.

Bottom-line surges on robust top-line growth coupled with margin expansion

Bottom-line registered EGP339 million in 1Q21 (+232% YoY, +44.6% QoQ), supported by the group’s solid top-line growth and rising margins. This translated into a NPM expansion of 9.6pps YoY and 6.2pps QoQ, with a NPM of 30.0% in 1Q21. On the gross profitability level, GPM expanded by 7.9pps YoY and 4.5pps QoQ, registering 56.5% in 1Q21, with a gross profit of EGP638 million (+163% YoY, +24.5% QoQ). This came on the back of a YoY decline in wages and salaries, depreciation and amortization, as well as other expenses, which dropped to 24.2% of revenues in 1Q21, down from 35.7% in 1Q20. EBITDA margin registered a record-high of 51.9% in 1Q21 (+11.3pps YoY, +5.2pps QoQ), reflecting an EBITDA of EGP586 million (+189% YoY, +27.2% QoQ). This was underpinned by the group’s solid top-line growth in 2021, in addition to the normalization of booked provisions, which fell from EGP10 million in 1Q20 to EGP5 million in 1Q21.

Covid-related tests boost annual top-line growth

IDHC’s revenues witnessed a notable surge of 126% YoY and a sequential growth of 14.6% QoQ, recording EGP1,130 million in 1Q21. Robust top-line growth was primarily attributed to Covid-tests (PCRs, Antigen, and Antibodies tests), where IDHC conducted 407k Covid-tests and generated revenues of EGP399 million in 1Q21, contributing 35% to IDHC’s consolidated top-line. In addition, the group recorded revenues of EGP137 million from other Covid-related tests, which contributed 12% to the group’s top-line.


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