Integrated Diagnostics (LON:IDHC) reported a strong start to 2026, with management pointing to broad-based growth across its core Egyptian operations, continued progress in Saudi Arabia and Nigeria, and resilient demand despite the seasonal impact of Ramadan and Eid.
Chief Executive Officer Dr. Hend El Sherbini said IDH delivered “solid operational and financial performance” in the first quarter, supported by network expansion, deeper patient engagement, service diversification and disciplined execution.
Egypt Remains the Main Growth Engine
Egypt continued to drive the majority of IDH’s performance, with revenue rising 35% year over year to EGP 1.8 billion. The market accounted for 85% of group revenue in the quarter. El Sherbini said the performance reflected a 22% increase in tests performed and a 10% rise in average revenue per test, supported by demand, pricing optimization and an improving diagnostic mix.
The company expanded its Egyptian branch network by 151 locations over the past 12 months, reaching 751 branches at the end of March 2026. El Sherbini said the additional sites deepened the company’s presence in Greater Cairo and regional cities and supported both contract and walk-in patient access.
Home collection remained an important part of the Egyptian business, contributing about 23% of Egypt revenue during the quarter. Management attributed the service’s performance to patient adoption, digital booking capabilities, logistics and the company’s national network.
Al Borg Scan, IDH’s radiology and radiotherapy platform, posted revenue of EGP 94 million, up 67% year over year. The increase was supported by higher utilization, stronger patient traffic and the contribution from Cairo Ray for radiotherapy. However, El Sherbini said profitability in the segment was temporarily affected by pre-operating expenses tied to a new Al Borg Scan branch.
Saudi Arabia Ramp-Up Continues
IDH said its Saudi Arabian business, Biolab KSA, continued to ramp up in the first quarter. Revenue reached SAR 2.2 million, up 171% year over year. In Egyptian pound terms, revenue rose 175% to EGP 30 million.
Management said patients served in Saudi Arabia increased 146%, while tests performed rose 163%, reflecting growing brand awareness and utilization across the branch network. El Sherbini said the company plans to launch three additional Saudi branches in the coming months, bringing the network to six locations.
During the question-and-answer portion of the call, Vice President and Group CFO Sherif El Zeiny said the company expects KSA revenue of SAR 18 million for the year budget and later said IDH aims to reach 10 branches in Saudi Arabia by the end of the year. El Sherbini said the company is still in a “learning phase” in the market and is focused on expanding profitably rather than simply opening branches.
Profitability Holds Despite Cost Pressures
Gross profit increased 28% year over year to EGP 807 million, while EBITDA rose 26% to EGP 611 million. Gross margin was 38.9%, compared with 39.8% in the prior-year period. EBITDA margin was 29.5%, down from 31.5% a year earlier.
El Sherbini and El Zeiny said margin pressure reflected Ramadan and Eid seasonality, pre-operating expenses at Al Borg Scan, and higher marketing and promotional spending tied to growth initiatives.
Net profit increased 78% year over year to EGP 437 million, helped by foreign exchange gains of EGP 145 million, compared with EGP 31 million in the prior-year quarter. Excluding foreign exchange gains in both periods, adjusted net profit increased 36% to EGP 292 million, with adjusted net profit margin improving to 14.1% from 13.5%.
El Zeiny said operating profit increased 25% year over year to EGP 458 million. He also said raw materials declined as a share of revenue to 18.7% from 19.5%, reflecting procurement optimization, inventory planning and supplier negotiations. Direct wages and salaries rose to 21.2% of revenue from 20.1%, reflecting branch expansion, newer geographies and staffing needs.
SG&A expenses increased 32% year over year to EGP 350 million, but were broadly stable as a percentage of revenue at 16.9%. Advertising and marketing expenses rose 54% to EGP 66 million as IDH invested in brand visibility, patient acquisition and promotional initiatives, including support for Biolab KSA.
Regional Markets and Balance Sheet
Ahmed Refaat, IDH’s Head of Financial Planning and Analysis, said Egypt’s operating environment continued to benefit from the stabilization achieved during 2025, including better foreign exchange availability. However, management is monitoring renewed pressure on the Egyptian pound and regional geopolitical developments.
In Jordan, Refaat said the insurance-led healthcare system continued to support diagnostics demand. Biolab test volume increased 10% year over year, while patients served were largely stable. In the Q&A, El Sherbini said Jordan remained “quite stable,” with no operational problems observed.
In Nigeria, Equilab continued its turnaround, with revenue rising 23% in local currency terms and EBITDA margin improving to 13.9% from 7.7% a year earlier. In Sudan, operations remained significantly constrained by the ongoing conflict, with only one branch partially operational.
IDH ended March with cash balances and financial assets at amortized cost of EGP 2.3 billion, up from EGP 2.1 billion at year-end 2025. Net cash increased to EGP 728 million from EGP 472 million, while interest-bearing debt, including accrued interest, was broadly stable at EGP 422 million.
Inventory rose to EGP 666 million from EGP 424 million at year-end 2025, and days inventory outstanding increased to 130 days from 94 days. El Zeiny said the buildup was deliberate and aimed at securing critical medical supplies and test kits amid regional tensions and logistics uncertainty. In the Q&A, he said the company’s inventory was covered through August or the beginning of September.
Guidance, Pricing and Capital Allocation
In response to an analyst question on guidance, El Zeiny cited a budget of around EGP 10 billion, with gross profit margin of 43% and EBITDA margin around 30%. He later said medium-term EBITDA margins were expected to remain in the “early thirties.”
Management said IDH implemented a 7% price increase in the first quarter. El Sherbini said the company retains flexibility to raise prices further during the year if needed due to Egyptian pound depreciation or other factors.
Asked about the competitive landscape, El Sherbini said IDH had not seen any major changes, although some providers had reduced their footprint or disappeared. She said there had been no “remarkable activity” from competitors.
On capital allocation, El Sherbini said the company had not bought back shares because it did not want to worsen limited market liquidity. El Zeiny said there were no plans to change the current dividend policy. El Sherbini added that IDH is evaluating multiple investment opportunities but is not ready to disclose details because none have received board approval.
About Integrated Diagnostics (LON:IDHC)
IDH is a leading diagnostics services provider in the Middle East and Africa offering a broad range of clinical pathology and
radiology tests to patients in Egypt, Jordan, Nigeria, Saudi Arabia, and Sudan. The Group’s core brands include Al Borg, Al Borg
Scan and Al Mokhtabar in Egypt, as well as Biolab (Jordan), Echo-Lab (Nigeria), Ultralab and Al Mokhtabar Sudan (both in Sudan),
and Biolab KSA (Saudi Arabia). With over 40 years of experience, a long track record for quality and safety has earned the Company
a trusted reputation, as well as internationally recognised accreditations for its portfolio of over 3,000 diagnostics tests.
