Integrated Diagnostics Holdings plc

IDH reported H1 2026 revenue of EGP 4.9 billion, up 37% year over year. Gross profit rose 41% to EGP 2.1 billion, with gross margin improving to 43.3% from 42%; EBITDA increased 38% to EGP 1.6 billion, with EBITDA margin at 33.9%; and net profit increased 47% to EGP 839 million. Excluding FX gains and losses in both periods, adjusted net profit increased 40% to EGP 802 million, with adjusted net margin at 16.5%. On volume, tests performed rose 20% to 23.6 million and patients served increased 14% to 4.9 million. For full-year 2026, management guided to EGP 11 billion revenue, 46% gross profit margin, 37% EBITDA margin, and 20% net profit margin. Management said there will be no interim dividend, and it expects H2 margins to remain resilient and broadly in line with H1, with seasonality benefiting Q3 and Q4.

The CEO framed H1 as a strong, broad-based performance with resilience across the portfolio, led by Egypt, while Jordan stayed stable, Nigeria continued its turnaround, and Saudi Arabia ramped up. She emphasized that the company is investing for future growth in radiology, radiotherapy, specialized diagnostics, and regional expansion, while keeping execution disciplined. Her tone was constructive and confident, but she also noted ongoing monitoring of macro and geopolitical volatility.

The CFO highlighted that profitability improved despite continued investment, with gross profit up 41% to EGP 2.1 billion and EBITDA up 38% to EGP 1.6 billion. He attributed the margin strength to procurement optimization, improved inventory planning, better supplier negotiations, and stronger operating leverage; raw materials fell to 18.1% of revenue from 19.6%, while SG&A stayed broadly stable at 16.1% of revenue despite rising to EGP 780 million. He also discussed liquidity and working capital: net trade receivables were EGP 1.4 billion, inventory was EGP 686 million, cash and financial assets at amortized cost were GBP 1.9 billion, net cash was GBP 239 million, and interest-bearing debt was GBP 378 million. He said the higher interest expense was tied to debt from the CAIRO RAY acquisition.

Analysts focused on dividends, margins, branch expansion, Nigeria, Saudi Arabia, and pricing. Management said there would be no interim dividend because it wants to preserve cash for expansion opportunities and balance sheet flexibility, and it expects H2 margins to stay strong and resilient. On Egypt, management said the faster branch count reflects 20 new hospitals, 49 new clinics, and its own branch openings, and it expects around 50 more branches in H2; on Saudi Arabia, it said five branches are open, four more are planned this year, and the long-term target is 50 branches in three years. For Nigeria, management said the priority is profitability and revenue growth from existing branches rather than new openings, and it noted the business is already present in major cities.