(Cairo and London) — Integrated Diagnostics Holdings (“IDH,” “the Group,” or “the Company”), a leading consumer healthcare company with operations in Egypt, Jordan, Sudan and Nigeria, released today its reviewed financial statements and operational performance for the nine-month period ended 30 September 2021, reporting revenue of EGP 3,767 million, up 126% from the comparable period of 2020. Profitability remained at an all-time high, with net profit recording a three-fold year-on-year increase to reach EGP 1,148 million in 9M 2021. IDH’s nine-month results were bolstered by a record-breaking third quarter which saw the Company outperform its already remarkable results from the first and second quarters of this year.
Financial Results
EGP mn 9M 2020 9M 2021 Change
Revenues 1,670 3,767 126%
Cost of Sales 840 1,600 90%
Gross Profit 830 2,167 161%
Gross Profit Margin 50% 58% 7.8 pts
Operating Profit 575 1,823 217%
Normalised EBITDA 710 1,992 180%
EBITDA Margin 43% 53% 10.4 pts
Net Profit 375 1,148 206%
Net Profit Margin 22% 30% 8.0 pts
Cash Balance 465 1,807 288%
During the nine-month period, IDH leveraged an expanded branch network, which currently stands at 507 branches, and its increasingly popular house call service to serve 7.5 million patients, up 56% year-on-year, and conduct 25.0 million tests, 33% above the test volumes from this time last year. Consolidated revenues continued to be supported by IDH’s house call service in Egypt and Jordan. Revenue generated by the service expanded 146% year-on-year in 9M 2021, with its contribution to total revenue reaching 20% versus 19% in 9M 2020.
On a geographic basis, Egypt, Jordan and Nigeria continued to report strong revenue growth in 9M 2021 expanding 122%, 172%, and 62%, respectively. Highlights for Q3 2021 included the outstanding growth of Al-Borg Scan with the launch of the venture’s third branch; the continued ramp up of IDH’s house call services and of its AI-focused subsidiary Wayak; and strong contributions from Biolab’s revenue-sharing partnerships in Jordan. Meanwhile, in Nigeria revenues continued their steady growth thanks to the company’s new management team and their efforts in streamlining operations. Finally, in Sudan results continued to be impacted by the Sudanese Pound devaluation earlier in the year. However, in local currency terms revenue was up a solid 169% year-on-year for the nine-month period.
Commenting on the Group’s performance for the nine-month period, IDH Chief Executive Officer Dr. Hend El-Sherbini said: “As we near the end of what is shaping out to be another record-breaking year for IDH, I am delighted to present to you a new set of impressive financial and operational results. During the third quarter of 2021, we successfully built on an already remarkable first half of the year to report our highest ever revenue and net profit figures for a single quarter. More specifically, during Q3 2021 we recorded top- and bottom-line quarter-on-quarter growth of 27% and 47%, respectively, an outstanding performance which was supported by growing demand across our entire offering. It is worth highlighting that our conventional test volumes are back to pre-Covid-19 levels on both a quarterly and year-to-date basis, and in 9M 2021 recorded a 3% increase versus the same nine months of 2019 once adjusting for the impact of the 100 Million Healthy Lives campaign .”
“Since the start of the year, we have displayed a remarkable ability to adapt to changing market and demand dynamics and consistently cater to the evolving needs of our growing patient base. In the third quarter, we continued to effectively care for both our conventional and Covid-19 patients leveraging an expanded branch network, a ramped up house call service, and a growing digital presence to make our services increasingly accessible and our payment methods increasingly convenient. On the one hand, we are continuing to serve our Covid-19 patients by ensuring we are well-equipped to handle peaks in demand when infection rates increase, while promptly adapting our offering to the requirements of patients. On the other hand, despite the challenges posed by the pandemic, we have never lost sight of the needs of our conventional patients, continuing to care for them even at the height of the Covid-19 crisis,” El-Sherbini added.
Further down the income statement, IDH continued to record strong growth with record high margins at all levels of profitability supported by strong top-line and the subsequent dilution of the Company’s fixed costs. Gross profit recorded EGP 2,167 million, up 161% year-on-year and with an associated margin of 58% versus 50% this time last year. Normalised EBITDA increased 180% year-on-year to EGP 1,992 million in 9M 2021, while normalised EBITDA margin expanded 10 percentage points to record 53% for the period. Finally, net profit recorded EGP 1,148 million in 9M 2021, a three-fold increase from the same period of last year, with a net profit margin of 30% versus 22% in 9M 2020.
“Looking ahead, our strategic priorities remain unchanged as we continue assisting local authorities in their battle against Covid-19 while simultaneously pressing forward with our post-pandemic strategy and set the foundations for a new chapter of sustainable growth. On this front, during the quarter we launched our new loyalty programme specifically aimed at retaining the new patients we were able to acquire since the start of the pandemic. At the same time, we rolled out an additional 12 branches in Q3 2021, and remain on track to reach our target of 30 to 35 new branch rollouts in 2021. IDH currently operates the largest network of branches amongst private players in the country, maintaining its leadership position in the market. We are also continuing to assess potential value-accretive acquisition opportunities in new markets across Africa, the Middle East, and Asia where we feel our business model is best-suited to capitalise on healthcare and consumer trends similar to those prevailing in our current markets. Finally, while the ongoing global supply chain disruptions have had little to no impact on our operations, we are keeping a close eye on the evolving situation and have taken proactive steps to build up our inventory to shield from any potential disruptions. It is also worth highlighting that our test kits are purchased on fixed-price contracts with tenors ranging from five to seven years, providing effective protection from short-term price fluctuations,” El-Sherbini concluded.
IDH’s full 9M 2021 earnings release for the nine-month period ended 30 September 2021 are available at idhcorp.com.