Egyptian tycoon Hend El-Sherbini’s IDH reports $80 million in profit as COVID-19 tests drive growth

Integrated Diagnostics Holdings (IDH), an Egyptian healthcare services provider led by Egyptian businesswoman Hend El-Sherbini, has reported its highest-ever net profit, with earnings exceeding EGP1.49 billion ($80.2 million) at the end of its fiscal period in 2021.

Under the leadership of El-Sherbini, its CEO, IDH has become a leading consumer healthcare group in the Middle East and Africa, with operations in Egypt, Jordan, Sudan and Nigeria. It has a branch network of 483 labs across four countries, making it Egypt’s largest diagnostics service provider, offering over 1,400 international-standard diagnostics tests.

According to the company’s 2021 earnings report, its consolidated net profit increased by 145 percent from EGP609 million ($32.8 million) at the end of 2020 to EGP1.49 billion ($80.2 million), while revenue nearly doubled from EGP2.66 billion ($143.2 million) to EGP5.1 billion ($274.5 million).

The surge in revenue was driven by a combination of factors, with total tests performed increasing by 24 percent year-on-year and the average price per test increasing by 53 percent compared to 2020.

During the year, the group’s net sales were bolstered by strong demand for IDH’s Covid-19-related and conventional tests portfolios, with the segments accounting for 51 percent and 49 percent of consolidated net sales, respectively.

Aside from revenue growth, the triple-digit percent increase in earnings can also be attributed to management’s cost-cutting strategies, which kept direct costs and other operating expenses to a minimum throughout the year.

In light of the outstanding performance, IDH’s board of directors proposed a dividend distribution to shareholders of EGP2.17 ($0.1168) per share or EGP1.3 billion ($70 million) in total. This represents a significant increase over the previous fiscal year’s final dividend of $29.1 million distributed.

Despite the impressive financial performance, shares in the leading diagnostics service provider were trading at EGP19.1 ($1.028) per share, 9.05-percent lower than the Egyptian Exchange’s opening price this morning.

IDH’s market capitalization is currently worth EGP11.46 billion ($616.9 million), while Hendi El Sherbini’s 25.5-percent stake in the group is worth EGP2.92 billion ($157.2 million).