Integrated Diagnostics (LON:IDHC) reported higher first-half revenue, profit and test volumes for 2026, led by growth in its Egyptian business and continued expansion in Saudi Arabia, while management said it expects margins to remain resilient through the remainder of the year.
Revenue rose 37% year over year to EGP 4.9 billion in the six months ended June 30, as the number of tests performed increased 20% to 23.6 million and average revenue per test climbed 14% to EGP 206. The group served 4.9 million patients, up 14% from a year earlier, while average tests per patient reached a record 4.9, compared with 4.6 in the first half of 2025.
Egypt Remains the Main Growth Engine
Egypt generated EGP 4.2 billion of revenue, up 41% year over year, and represented approximately 86% of group revenue during the period. Test volumes in the country rose 21%, while average revenue per test increased 16%, supported by demand, pricing and diagnostic mix, management said.
The company added 157 Egyptian locations over the past 12 months, bringing its national network to 793 branches as of June 30. El Sherbiny said the increase partly reflected a focus on hospital and clinic management, including 20 new hospitals and 49 new clinics, in addition to new company-operated branches.
IDH expects to add around 50 further branches in Egypt during the second half of 2026. Its household service, which provides at-home diagnostic services, accounted for approximately 22% of Egyptian revenue in the first half.
The group’s radiology and radiotherapy platform generated EGP 220 million in revenue, an increase of 79% year over year. Scans and radiotherapy procedures rose 40% to 162,000, while average revenue per scan increased 28% to EGP 1,358. The platform served 121,000 patients and had expanded to nine branches, comprising eight Al Borg Scan locations and one radiotherapy facility.
Saudi Expansion Continues, Nigeria Turns Profitable
Biolab KSA, IDH’s Saudi Arabian operation, reported first-half revenue of SAR 5.5 million, up 191% year over year. Revenue increased 199% in Egyptian-pound terms to EGP 76 million. Patients served rose 144%, while tests performed rose 194%, as the operation expanded to five branches.
Management said Saudi Arabia remains in an early ramp-up phase and has not yet reached break-even. The company’s plan called for nine Saudi branches in 2026, leaving four still to open during the second half. CFO Sherif El Zeiny said at least two of the upcoming locations are expected to be outside Riyadh, in areas including Jeddah and Khobar or Dammam.
IDH has a three-year plan to operate 50 Saudi branches, management said. El Sherbiny added that the Saudi diagnostics market is fragmented and that the company sees demand and growing awareness of the Biolab brand. She said there was no concrete acquisition opportunity currently under consideration.
In Nigeria, Echo-Lab increased revenue by 12% in local-currency terms and improved its EBITDA margin to 7% from 2% a year earlier. El Zeiny said the business generated EBITDA of NGN 142 million, compared with NGN 87 million in the prior-year period, and recorded a first positive net income of NGN 35 million.
The company did not open Nigerian branches during the period, instead refurbishing six of its 12 locations and relocating one branch in Lagos. Management said its priority is increasing revenue, test volumes, patient reach and profitability at existing sites rather than adding locations, as it already has a presence in Nigeria’s major cities.
Jordan delivered revenue growth in both local currency and Egyptian-pound terms, while test volumes increased 10%. Sudan remained significantly constrained by the ongoing conflict, with only one branch partially operational, according to the company.
Margins Hold as Costs Rise With Expansion
Gross profit increased 41% to EGP 2.1 billion, lifting the gross margin to 43.3% from 42.0% in the prior-year period. EBITDA grew 38% to EGP 1.6 billion, while the EBITDA margin was broadly stable at 33.9%, compared with 33.6% a year earlier.
El Zeiny attributed the margin performance to higher volumes, procurement optimization, inventory planning and operating leverage. Raw-material and specialized-analysis costs declined to 18.1% of revenue from 19.6%, while depreciation and amortization fell to 6.2% of revenue from 7.0%.
Selling, general and administrative expenses rose 37% to EGP 780 million, remaining broadly flat as a proportion of revenue at 16.1%. Advertising and marketing spending increased 56% to EGP 151 million as IDH invested in brand visibility, patient acquisition and the Saudi expansion.
Net profit rose 47% to EGP 839 million, with the net profit margin expanding to 17.3% from 16.1%. Excluding foreign-exchange gains and losses in both periods, adjusted net profit increased 40% to EGP 802 million and the adjusted margin rose to 16.5%.
Outlook and Capital Allocation
Management forecast full-year 2026 revenue of EGP 11 billion, a gross profit margin of 46%, an EBITDA margin of 37% and a net profit margin of 20%. The company expects third- and fourth-quarter margins to remain resilient and broadly consistent with first-half levels.
El Sherbiny said net trade receivables rose to EGP 1.4 billion at June 30 from EGP 996 million at year-end, while inventory increased to EGP 686 million from EGP 424 million. Management described the inventory increase as a deliberate build-up to secure critical medical supplies and test kits amid regional tensions and uncertainty around global supply chains and logistics routes.
The CFO said cash balances and financial assets at amortized cost totaled GBP 1.9 billion at June 30, compared with GBP 2.1 billion at year-end, while net cash stood at GBP 239 million. Interest-bearing debt, including accrued interest, was GBP 378 million, down from GBP 432 million, following repayments of short-term borrowings.
The board will not distribute a dividend for the quarter, Investor Relations Officer Mirette Ahmed said. She cited expansion opportunities, geopolitical uncertainty and the need to preserve cash and balance-sheet flexibility. Management also said it does not plan additional price increases for the remainder of 2026 after raising prices by 4% during the second quarter.
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.
