Integrated Diagnostics Holdings (IDH), a leading healthcare services provider led by Egyptian businesswoman Hend El-Sherbini, reported a double-digit decline in profit in the first half of 2022 due to a significant slowdown in COVID-19-related business.
According to figures in the group’s interim financial results for the first six months of 2022, profit fell by 34 percent from EGP668 million ($34.5 million) in the previous year to EGP439 million ($22.67 million).
The decline in earnings can be attributed to a drop in revenue from EGP2.29 billion ($118.1 million) to EGP1.95 billion ($100.7 million), which was caused by a significant slowdown in COVID-19-related business, the lifting of mandatory testing for international travelers, and a significant drop in the average price per COVID-19-related test.
IDH’s COVID-19-related net sales were EGP552 million ($28.5 million) during the six-month period, compared to EGP1.1 billion ($56.75 million) in the first half of 2021. As a result, the segment accounted for only 29 percent of total net sales in the first half of 2022, compared to 48 percent in the first half of 2021.
Despite the group’s revenue and earnings declining, El-Sherbini, IDH’s CEO, revealed that the healthcare services provider reported double-digit growth in its conventional businesses despite difficulties in its operating environment.
“I am pleased to present another set of solid financial and operational results, which saw us build on a strong start to the year to deliver further growth in our conventional business despite a difficult operating environment,” she said.
She added: “Our ability to consistently grow our business irrespective of ongoing challenges, has enabled our conventional revenues to currently stand an impressive 32 percent above pre-pandemic revenues recorded in the first half of 2019.”
As a result of the double-digit decline in earnings and the impact of the dividend paid to shareholders, the group’s retained earnings fell from EGP1.55 billion ($80 million) at the start of the year to EGP663.7 billion ($34.34 million), while the total assets increased marginally from EGP6.24 billion ($322 million) to EGP6.3 billion ($325 million).
Under the leadership of El-Sherbini, who presently controls a significant 26.1-percent stake in the group IDH, has grown into a major consumer healthcare group in the Middle East and Africa, with operations in Egypt, Jordan, Sudan, and Nigeria.
With 483 labs spread across four countries, the group is Egypt’s largest diagnostic service provider, offering more than 1,400 international-standard diagnostic tests.
