REG - Integrated Diag Hdgs - 1st Quarter Results
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RNS Number : 9748E Integrated Diagnostics Holdings PLC 20 May 2026
Integrated Diagnostics Holdings Plc
Q1 2026 Results
Wednesday, 20 May 2026
Integrated Diagnostics Holdings plc reports 31% revenue growth in Q1 2026 with
continued expansion across core markets and resilient profitability
performance
(London) - Integrated Diagnostics Holdings ("IDH," "the Group," or "the
Company"), a leading provider of diagnostic services with operations in Egypt,
Jordan, Nigeria, Saudi Arabia, and Sudan, announced today its unaudited
financial results for the first quarter ended 31 March 2026. The Company
reported revenues of EGP 2.1 billion in Q1 2026, representing a 31%
year-on-year increase, driven by a 22% rise in tests performed and a 7%
increase in average revenue per test, reflecting continued growth in patient
volumes and broader service utilisation across the Group's footprint. Gross
profit increased 28% year-on-year to EGP 807 million, while EBITDA grew 23%
year-on-year to EGP 611 million, resulting in an EBITDA margin of 29.5%. Net
profit rose 78% year-on-year to EGP 437 million in Q1 2026. Excluding foreign
exchange gains in both periods, adjusted net profit increased 36% year-on-year
to EGP 292 million, with the associated margin improving 60bps to 14.1%.
Performance during the quarter reflected the seasonal impact of Ramadan and
Eid, with a greater number of holiday days falling within Q1 2026 compared to
the prior-year period, moderating revenue growth and temporarily weighing on
operating leverage. Profitability was also impacted by pre-operating expenses
related to a new Al Borg Scan branch. Despite these factors, the Group
continued to deliver healthy profitability supported by disciplined cost
management and operational execution.
Financial Results (IFRS)
EGP mn Q1 2025 Q1 2026 Change
Revenue 1,583 2,073 31%
Cost of Sales (952) (1,266) 33%
Gross Profit 631 807 28%
Gross Profit Margin 39.8% 38.9% -0.9 pts.
Operating Profit 365 458 25%
EBITDA 498 611 23%
EBITDA Margin 31.5% 29.5% -2.0 pts.
Net Profit 245 437 78%
Net Profit Margin 15.5% 21.1% 5.6 pts.
Adjusted Net Profit(1) 214 292 36%
Adjusted Net Profit Margin 13.5% 14.1% 0.6 pts.
Cash Balance(2) 1,662 1,855 12%
Note: Throughout the document, percentage changes are calculated using the
exact value (as per the Consolidated Financials) and not the corresponding
rounded figure.
Key Operational Indicators(3)
EGP Q1 2025 Q1 2026 Change
Branches 641 794(4) +153
Patients ('000) 1,882 2,202 17%
Revenue per Patient (EGP) 839 941 12%
Tests ('000) 8,555 10,428 22%
Revenue per Test (EGP) 185 199 7%
Test per Patient 4.5 4.7 4%
1 Adjusted net profit excludes foreign exchange gains from both periods.
Foreign exchange gains amounted to EGP 145 million in Q1 2026 and EGP 31
million in Q1 2025.
2 Cash balance includes time deposits, treasury bills, current accounts, and
cash on hand.
3 Key operational indicators are calculated based on revenue for the periods
of EGP 2,073 million and EGP 1,583 million for Q1 2026 and Q1 2025,
respectively.
4 IDH rolled out 151 new branches in Egypt, one new branch in Jordan, and one
new branch in KSA.
Introduction
i. Financial Highlights
· IDH reported consolidated revenue of EGP 2,073 million in Q1
2026, representing a 31% year-on-year increase, driven by a 22% rise in test
volumes and a 7% increase in average revenue per test (ARPT). Growth remained
broad-based across the Group's footprint, with Egypt, Jordan, Nigeria, and
Saudi Arabia all contributing positively during the quarter. Performance was
supported by continued expansion of the branch network, higher patient
throughput across both contract and walk-in segments, and growing utilisation
of specialised diagnostics and radiology services. The quarter's performance
was partially impacted by the seasonal effect of Ramadan and Eid, with a
greater number of holiday days falling within Q1 2026 compared to Q1 2025.
· Gross profit reached EGP 807 million in Q1 2026, representing a
28% year-on-year increase, while the gross profit margin (GPM) recorded 38.9%,
compared with 39.8% in Q1 2025. Margin performance during the quarter
reflected the seasonal slowdown associated with Ramadan, which weighed on
operating leverage, alongside pre-operating expenses related to a new Al Borg
Scan branch launched following the Cairo Ray acquisition. Raw materials as a
share of revenue improved to 18.7% from 19.5% in Q1 2025, supported by
procurement optimisation and scale efficiencies. Meanwhile, wages and salaries
increased modestly to 21.2% of revenue from 20.1%, reflecting continued branch
expansion and investment in operational capacity.
· EBITDA increased 23% year-on-year to EGP 611 million in Q1 2026,
with an EBITDA margin of 29.5%, compared with 31.5% in Q1 2025. Operating
profit also recorded solid growth, increasing 25% year-on-year to EGP 458
million. Profitability during the quarter continued to reflect healthy
operating performance despite the seasonal Ramadan impact and pre-operating
expenses related to new expansions. The Group continued to benefit from
disciplined SG&A management, digitalisation initiatives, and operating
leverage across the platform, although continued investment in growth
initiatives, particularly in Saudi Arabia and radiology expansion, partially
weighed on margins during the period.
· Net profit rose 78% year-on-year to EGP 437 million in Q1 2026,
with a net profit margin (NPM) of 21.1%, compared with 15.5% in Q1 2025.
Excluding foreign exchange gains in both periods, adjusted net profit
increased 36% year-on-year to EGP 292 million, with the associated margin
improving to 14.1% from 13.5% in Q1 2025, highlighting the continued strength
of the Group's underlying operating performance during the quarter.
· IDH's net cash balance stood at EGP 1,855 million as at 31 March
2026, compared with EGP 1,662 million as at 31 March 2025, reflecting
continued strong operating cash generation and disciplined working capital
management.
ii. Operational Highlights
· As at 31 March 2026, IDH's branch network stood at 794 branches,
up 153 branches year-on-year from 641 branches as at 31 March 2025. Over the
past twelve months, the Group inaugurated 151 new branches in Egypt, alongside
one new branch in Jordan and one additional branch in Saudi Arabia, while
operations in Sudan remained largely suspended except for a single partially
operational branch.
· During Q1 2026, IDH conducted 10.4 million tests, representing a
22% year-on-year increase, supported by higher patient throughput across both
contract and walk-in channels. Test volumes increased across all operating
geographies, with particularly strong momentum in Egypt and Saudi Arabia.
Growth during the quarter underscores the resilience of underlying demand and
the continued strength of the Group's brands.
· Average revenue per test (ARPT) increased 7% year-on-year to EGP
199 in Q1 2026, reflecting continued improvements in pricing and a richer
service mix supported by higher contributions from radiology, radiotherapy,
and specialised diagnostics. Average revenue per patient rose 12% year-on-year
to EGP 941, highlighting IDH's continued success in enhancing value capture
per patient through cross-selling initiatives and broader service offerings.
IDH served 2.2 million patients during Q1 2026, up 17% year-on-year. In
parallel, the Group further improved its average tests per patient metric to
4.7, compared with 4.5 in Q1 2025. This improvement reflects the effectiveness
of IDH's ongoing efforts to deepen patient engagement, strengthen referral
flows, and expand utilisation across its integrated diagnostics platform.
iii. Updates by Geography
· In Egypt (85.0% of total revenue in Q1 2026), IDH recorded
revenues of EGP 1,762 million during the quarter, representing 35%
year-on-year growth compared to Q1 2025. Growth was supported by a 22%
increase in test volumes alongside a 10% rise in average revenue per test,
reflecting continued strength in underlying demand, pricing optimisation, and
a richer service mix.
· IDH's Jordanian subsidiary, Biolab (11.8% of total revenues in Q1
2026), reported revenues of JOD 3.5 million, up 6% year-on-year from JOD 3.3
million in Q1 2025. In Egyptian pound terms, revenues increased 4%
year-on-year to EGP 244 million. Performance during the quarter was supported
by a 10% increase in test volumes, while patients served remained largely
stable, reflecting higher tests per patient and the continued effectiveness of
Biolab's promotional, cross-selling, and loyalty initiatives. Average revenue
per test in EGP terms declined 5% year-on-year due primarily to currency
translation effects and pricing dynamics within Jordan's regulated healthcare
market.
· In Nigeria (1.8% of total revenues in Q1 2026), Echo-Lab recorded
revenues of NGN 1,032 million, representing 23% year-on-year growth in local
currency terms. In Egyptian pound terms, revenues increased 32% year-on-year
to EGP 37 million. Growth during the quarter was supported by continued
pricing adjustments implemented to offset local inflationary pressures,
alongside a 9% increase in test volumes. Importantly, Echo-Lab maintained
positive EBITDA generation during the quarter, with EBITDA margin improving
significantly to 13.9%, compared with 7.7% in Q1 2025, reflecting continued
operational improvements and disciplined cost management.
· Biolab KSA, IDH's newest venture in Saudi Arabia (1.5% of total
revenues in Q1 2026), reported revenues of SAR 2.2 million during the quarter,
representing 171% year-on-year growth compared with Q1 2025. In Egyptian pound
terms, revenues increased 175% year-on-year to EGP 30 million. Growth was
driven by strong increases in patient traffic (+146%) and test volumes (+163%)
following the expansion of the network to three operational branches and
reflecting growing brand awareness and continued ramp-up across the venture's
operations. The Group aims to launch three additional branches in the country
(taking the total up to six) in the coming months and leverage its expanded
ownership stake to further accelerate growth at its newest geography.
· In Sudan, one branch remained partially operational throughout
the quarter, while the remaining 17 branches continued to be closed
indefinitely pending stabilisation of conditions in the country. Management
continues to closely monitor developments on the ground while prioritising the
safety of employees and patients.
iv. Management Commentary
Commenting on the Group's Q1 2026 performance, IDH Chief Executive Officer,
Dr. Hend El-Sherbini, said: "We are pleased to begin 2026 with another quarter
of strong growth, reflecting the resilience of demand across our markets and
the continued strength of IDH's operating platform. During the quarter,
revenues increased 31% year-on-year to EGP 2.1 billion, supported by strong
growth in both patient volumes and tests performed, despite the seasonal
impact associated with Ramadan and Eid.
Importantly, we continued to deliver healthy profitability while investing for
future growth, including the ongoing expansion of our radiology platform and
broader regional footprint. The quarter also saw continued operational
progress across our newer geographies, with Nigeria maintaining positive
EBITDA generation and Saudi Arabia delivering strong growth in both patients
and tests performed.
Looking ahead, we remain focused on disciplined expansion, operational
efficiency, and deepening our specialised diagnostics capabilities across the
Group. While management continues to closely monitor evolving regional
developments and macroeconomic conditions, we believe IDH remains well
positioned to build on its momentum and continue delivering sustainable
long-term growth."
Analyst and Investor Call Details
An analyst and investor call will be hosted at 13:00 pm (UK) | 15:00 (Egypt)
on Monday, 25 May 2026. You can learn more details and register for the call
by clicking on the link
(https://irfiles.technologyverse.com/idh/IDH-Q1-results-conference-call.pdf) .
For more information about the event, please contact: amoataz@EFG-HERMES.com
(mailto:amoataz@EFG-HERMES.com)
About Integrated Diagnostics Holdings (IDH)
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. From its base of 794 branches as of 31 March 2026,
IDH serves nearly 10 million patients and performs over 40 million tests
annually. IDH will continue to add laboratories through a Hub, Spoke and Spike
business model that provides a scalable platform for efficient expansion.
Beyond organic growth, the Group targets expansion in appealing markets,
including acquisitions in the Middle Eastern, African, and East Asian markets
where its model is well-suited to capitalise on similar healthcare and
consumer trends and capture a significant share of fragmented markets. IDH has
been a Jersey-registered entity (i) whose shares are admitted to the equity
shares (transition) category (previously, the standard listing segment) of the
Official List of the UK Financial Conduct Authority and admitted to trading on
the main market for listed securities of the London Stock Exchange (ticker:
IDHC) since May 2015.
Shareholder Information
LSE: IDHC.L
Bloomberg: IDHC:LN
Listed on LSE: May 2015
Shares Outstanding: 581,326,272
Contact
Tarek Yehia
Investor Relations Director
T: +20 (0)2 3332 1126 | M: +20 10 6882 6678 | tarek.yehia@idhcorp.com
(mailto:tarek.yehia@idhcorp.com)
Forward-Looking Statements
These results for the quarter ended 31 March 2026 have been prepared solely to
provide additional information to shareholders to assess the group's
performance in relation to its operations and growth potential. These results
should not be relied upon by any other party or for any other reason. This
communication contains certain forward-looking statements. A forward-looking
statement is any statement that does not relate to historical facts and
events, and can be identified by the use of such words and phrases as
"according to estimates", "aims", "anticipates", "assumes", "believes",
"could", "estimates", "expects", "forecasts", "intends", "is of the opinion",
"may", "plans", "potential", "predicts", "projects", "should", "to the
knowledge of", "will", "would" or, in each case their negatives or other
similar expressions, which are intended to identify a statement as
forward-looking. This applies, in particular, to statements containing
information on future financial results, plans, or expectations regarding
business and management, future growth or profitability and general economic
and regulatory conditions and other matters affecting the Group.
Forward-looking statements reflect the current views of the Group's management
("Management") on future events, which are based on the assumptions of the
Management and involve known and unknown risks, uncertainties and other
factors that may cause the Group's actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements. The
occurrence or non-occurrence of an assumption could cause the Group's actual
financial condition and results of operations to differ materially from, or
fail to meet expectations expressed or implied by, such forward-looking
statements.
The Group's business is subject to a number of risks and uncertainties that
could also cause a forward-looking statement, estimate or prediction to differ
materially from those expressed or implied by the forward-looking statements
contained in this communication. The information, opinions and forward-looking
statements contained in this communication speak only as at its date and are
subject to change without notice. The Group does not undertake any obligation
to review, update, confirm or to release publicly any revisions to any
forward-looking statements to reflect events that occur or circumstances that
arise in relation to the content of this communication.
Group Operational & Financial Review
i. Revenue and Cost Analysis
Consolidated Revenue
IDH delivered strong top-line growth during Q1 2026, reporting consolidated
revenues of EGP 2,073 million, representing a 31% year-on-year increase
compared with Q1 2025. Growth was supported by a 22% increase in test volumes
alongside a 7% rise in average revenue per test (ARPT), reflecting continued
expansion in patient activity, improved service utilisation, and ongoing
contribution from specialised diagnostics and radiology services across the
Group's footprint.
The quarter's performance came despite the seasonal impact associated with
Ramadan and Eid, with a greater number of holiday days falling within Q1 2026
compared with the prior-year period. Nevertheless, IDH continued to benefit
from resilient demand across both contract and walk-in segments, supported by
ongoing branch expansion, stronger referral flows, and continued progress in
cross-selling initiatives.
Q1 2025 Q1 2026 Change
Revenue (EGP mn) 1,583 2,073 31%
Tests performed (mn) 8.6 10.4 22%
Revenue per test (EGP) 185 199 7%
Revenue Analysis: Contribution by Patient Segment
Contract Segment (68% of Group revenue in Q1 2026)
Revenues from the contract segment reached EGP 1,419 million in Q1 2026,
representing 32% year-on-year growth compared with EGP 1,074 million in Q1
2025. Growth was supported by a 21% increase in test volumes alongside a 9%
rise in average revenue per test, reflecting continued strength across
corporate, insurance, and referral channels.
Average tests per patient in the contract segment increased to 4.9 tests per
patient in Q1 2026, compared with 4.7 in Q1 2025, highlighting continued
success in deepening patient engagement and expanding utilisation across the
Group's broader diagnostic offering.
Walk-in Segment (32% of Group revenue in Q1 2026)
Within the walk-in segment, revenues reached EGP 654 million in Q1 2026, up
29% year-on-year compared with EGP 509 million in Q1 2025. Performance was
driven by a 26% increase in test volumes alongside a 2% increase in average
revenue per test, supported by continued patient traffic growth and rising
utilisation of specialised diagnostics and radiology services.
Average tests per patient within the walk-in segment improved to 3.9 tests in
Q1 2026, compared with 3.7 in the prior-year period, reflecting the ongoing
effectiveness of IDH's cross-selling initiatives, digital outreach programmes,
and broader efforts to enhance the patient experience across its expanding
network.
Detailed Segment Performance Breakdown
Walk-in Segment Contract Segment Total
Q1 2025 Q1 2026 Change Q1 2025 Q1 2026 Change Q1 2025 Q1 2026 Change
Revenue (EGP mn) 509 654 29% 1,074 1,419 32% 1,583 2,073 31%
Patients ('000) 377 450 19% 1,504 1,752 16% 1,882 2,202 17%
% of patients 20% 20% 80% 80%
Revenue per Patient (EGP) 1,349 1,454 8% 714 810 13% 841 941 12%
Tests ('000) 1,411 1,776 26% 7,143 8,651 21% 8,555 10,428 22%
% of Tests 16% 17% 84% 83%
Revenue per Test (EGP) 361 368 2% 150 164 9% 185 199 7%
Test per Patient 3.7 3.9 6% 4.7 4.9 4% 4.5 4.7 4%
Revenue Analysis: Contribution by Geography
Egypt (85.0% of Group revenue in Q1 2026)
IDH's home and largest market, Egypt, continued to deliver strong growth
during Q1 2026, with revenues increasing 35% year-on-year to EGP 1,762
million, compared with EGP 1,310 million in Q1 2025. Performance was supported
by a 22% increase in tests performed alongside a 10% rise in average revenue
per test, reflecting continued growth in patient volumes, pricing
optimisation, and a progressively richer diagnostic mix, particularly within
radiology, radiotherapy, and specialised testing.
Al-Borg Scan and Radiotherapy
IDH's radiology segment, comprising Al Borg Scan and the radiotherapy offering
added following the acquisition of Cairo Ray for Radiotherapy in June 2025,
continued to increase its contribution to the Group's Egyptian operations
during Q1 2026. Radiology and radiotherapy revenues reached EGP 94 million
during the quarter, compared with EGP 56 million in Q1 2025, representing
year-on-year growth of 67%. Growth was supported by increasing utilisation,
higher patient traffic, and continued expansion of higher-value specialised
imaging and oncology-related services.
House Calls
IDH's house-call service remained a core pillar of its Egyptian operations
during Q1 2026, accounting for approximately 23% of Egypt's revenues, broadly
in line with recent periods and significantly above pre-pandemic levels. The
service continued to benefit from strong patient adoption, supported by
enhanced digital booking capabilities, efficient logistics, and the Group's
extensive nationwide network.
Wayak
Wayak, IDH's digital health and e-pharmacy platform, delivered revenues EGP
6.5 million in Q1 2026, compared with EGP 6.6 million in Q1 2025. Performance
was supported by continued a strong momentum in orders fulfilled, which
reached 71 thousand in Q1 2026, as well as optimisation of the platform's
delivery network, and increasing integration with IDH's broader branch and
digital ecosystem.
Detailed Egypt Performance Breakdown
Q1 2025 Q1 2026 Change
Revenue (EGP mn, contribution to Egypt's results) 1,310 1,762 35%
Pathology Revenue 1,253 (95.7%) 1,667 (94.7%) 33%
Radiology & Radiotherapy Revenue 56 (4.3%) 94 (5.3%) 67%
Tests performed (mn) 7.8 9.6 22%
Revenue per test (EGP) 168 184 10%
Jordan (11.8% of Group revenue in Q1 2026)
In IDH's second-largest market, Jordan, Biolab reported revenues of JOD 3.5
million in Q1 2026, representing a 6% year-on-year increase compared with JOD
3.3 million in Q1 2025. Growth was primarily volume-led, with the number of
tests performed increasing 10% year-on-year, supported by higher tests per
patient and the continued effectiveness of promotional, cross-selling, and
loyalty initiatives implemented across the network. Average revenue per test
in local currency declined modestly year-on-year, reflecting pricing dynamics
within Jordan's regulated healthcare market and the Group's ongoing strategy
to support patient retention and market share growth in a competitive
environment. In Egyptian pound terms, revenues increased 4% year-on-year to
EGP 244 million.
Detailed Jordan Performance Breakdown
Q1 2025 Q1 2026 Change
Revenue (EGP mn) 234 244 4%
Revenue (JOD mn) 3.3 3.5 6%
Tests performed (000s) 658 724 10%
Revenue per test (EGP) 356 337 -5%
Nigeria (1.8% of Group revenue in Q1 2026)
Echo-Lab, IDH's Nigerian subsidiary, reported revenues of NGN 1,032 million in
Q1 2026, representing 23% year-on-year growth compared with NGN 840 million in
Q1 2025. Revenue growth was supported by continued pricing adjustments
implemented to offset local inflationary pressures alongside a 9% increase in
test volumes, reflecting improving patient activity and continued operational
progress across the business. In Egyptian pound terms, revenues rose 32%
year-on-year to EGP 37 million, supported by both underlying operational
growth and FX translation effects.
Saudi Arabia (1.5% of Group revenue in Q1 2026)
Biolab KSA, IDH's Saudi Arabian venture, recorded revenues of SAR 2.2 million
in Q1 2026, representing 171% year-on-year growth compared with SAR 0.8
million in Q1 2025. In Egyptian pound terms, revenues increased 175%
year-on-year to EGP 30 million, reflecting the continued ramp-up in operations
and growing brand recognition across the Kingdom.
Growth was supported by a sharp increase in patient and test volumes as the
network expanded to three operational branches. During the quarter, patients
served increased 146% year-on-year, while tests performed rose 163%,
highlighting continued momentum in patient acquisition and utilisation across
the platform. Over the coming period, IDH plans to continue expanding its
footprint in the Kingdom in a disciplined and value-accretive manner.
Sudan
In Sudan, operations remained severely constrained by the ongoing conflict.
One branch remained partially operational throughout the quarter, while the
remaining 17 branches continued to be closed indefinitely pending
stabilisation of conditions in the country.
Management continues to closely monitor developments on the ground while
prioritising the safety of employees and patients.
Revenue Contribution by Country
Q1 2025 Q1 2026 Change
Egypt Revenue (EGP mn) 1,310 1,762 35%
Pathology Revenue (EGP mn) 1,253 1,667 33%
Radiology Revenue (EGP mn) 56 81 44%
Radiotherapy Revenue (EGP mn) - 13 -
Egypt Contribution to IDH Revenue 82.7% 85.0%
Jordan Revenue (EGP mn) 234 244 4%
Jordan Revenues (JOD mn) 3.3 3.5 6%
Jordan Revenue Contribution to IDH Revenue 14.8% 11.8%
Nigeria Revenue (EGP mn) 28 37 32%
Nigeria Revenue (NGN mn) 840 1,032 23%
Nigeria Contribution to IDH Revenue 1.8% 1.8%
Saudi Arabia Revenue (EGP mn) 11 30 175%
Saudi Arabia Revenue (SAR mn) 0.8 2.2 171%
Saudi Arabia Contribution to IDH Revenue 0.7% 1.5%
Average Exchange Rate
Q1 2025 Q1 2026 Change
USD/EGP 49.1 50.2 2%
JOD/EGP 71.0 70.1 -1%
NGN/EGP 0.0334 0.0361 8%
SAR/EGP 13.4 13.5 1%
SDG/EGP 0.0839 0.0140 -83%
Patients Served and Tests Performed by Country
Q1 2025 Q1 2026 Change
Egypt Patients Served (mn) 1.8 2.1 18%
Egypt Tests Performed (mn) 7.8 9.6 22%
Jordan Patients Served (k) 85 85 -1%
Jordan Tests Performed (k) 658 724 10%
Nigeria Patients Served (k) 26 28 7%
Nigeria Tests Performed (k) 53 58 9%
Saudi Arabia Patients Served (k) 5 12 146%
Saudi Arabia Tests Performed (k) 28 75 163%
Total Patients Served (mn) 1.9 2.2 17%
Total Tests Performed (mn) 8.6 10.4 22%
Operational Branches by Country
31 March 2025 31 March 2026 Change
Egypt 600 751 +151
Jordan 26 27 +1
Nigeria 12 12 -
KSA 2 3 +1
Sudan 1 1 -
Total 641 794 +153
Cost of Goods Sold (COGS)
IDH's cost of goods sold amounted to EGP 1,266 million in Q1 2026, marking a
33% increase year-on-year in line with higher activity levels, branch
expansion, and continued investment in operational capacity across the Group's
footprint. As a proportion of consolidated revenue, COGS recorded 61.1% in Q1
2026, compared with 60.2% in Q1 2025.
The Group continued to benefit from procurement optimisation, disciplined cost
management, and scale efficiencies across its operations. The improvement was
broad-based, reflecting tighter cost discipline, procurement efficiencies, and
the benefits of scale as volumes increased across IDH's core markets.
COGS Breakdown as a Percentage of Revenue
Q1 2025 Q1 2026
Raw Materials 19.5% 18.7%
Wages & Salaries 20.1% 21.2%
Depreciation & Amortisation 7.8% 6.9%
Other Expenses 12.8% 14.2%
Total 60.2% 61.1%
Raw materials stood at EGP 388 million in Q1 2026, compared with EGP 308
million in Q1 2025. As a percentage of revenue, raw materials improved to
18.7% from 19.5% in the prior-year quarter, reflecting continued procurement
optimisation, improved inventory planning, and stronger supplier negotiations,
which helped partially offset inflationary pressures and support higher
testing volumes.
Direct wages and salaries, including employee profit-sharing, amounted to EGP
440 million in Q1 2026, compared with EGP 318 million in Q1 2025. As a
percentage of revenue, wages and salaries increased to 21.2% from 20.1% in the
prior-year period, primarily reflecting continued investment in operational
capacity to support branch expansion, growth initiatives across newer
geographies, and pre-operating staffing costs associated with recently
launched facilities.
Direct Wages and Salaries by Region
Q1 2025 Q1 2026 Change
Egypt (EGP mn) 239 351 47%
Jordan (EGP mn) 67 72 7%
Jordan (JOD mn) 1.2 1.3 8%
Nigeria (EGP mn) 6 9 50%
Nigeria (NGN mn) 182 251 38%
Saudi Arabia (EGP mn) 7 9 31%
Saudi Arabia (SAR k) 499 663 33%
Direct depreciation and amortisation recorded EGP 143 million in Q1 2026,
compared with EGP 123 million in Q1 2025. Despite continued investment in
branch openings, radiology expansion, and diagnostic equipment across the
network, depreciation and amortisation declined to 6.9% of revenue from 7.8%
in the prior-year quarter, supported by stronger revenue generation and
operating leverage.
Other direct costs, including hospital contracts, maintenance, utilities,
transport, consulting, and licensing expenses reached EGP 294 million in Q1
2026, compared with EGP 202 million in Q1 2025, driven primarily by higher
technology and transportation costs. As a percentage of revenue, other direct
costs increased to 14.2% from 12.8%.
Gross Profit
IDH generated gross profit of EGP 807 million in Q1 2026, representing a 28%
year-on-year increase compared with Q1 2025. Gross profit margin remained
largely stable at 38.9%, compared with 39.8% in the prior-year quarter,
demonstrating the resilience of the Group's operating model despite temporary
seasonal and operational pressures during the period.
Margin performance during the quarter reflected the impact of Ramadan and Eid
seasonality, with a greater number of holidays falling within Q1 2026 compared
to Q1 2025, resulting in temporary operating deleverage across parts of the
network given the fixed-cost nature of the Group's platform. Margins were also
impacted by pre-operating expenses related to a new Al Borg Scan branch
launched following the Cairo Ray acquisition.
Selling, General, and Administrative (SG&A) Expenses
IDH's SG&A expenses amounted to EGP 350 million in Q1 2026, representing a
32% increase year-on-year compared with Q1 2025. As a percentage of
consolidated revenue, SG&A stood broadly stable at 16.9% in Q1 2026,
versus 16.8% in the prior-year quarter. The year-on-year movement in SG&A
was primarily driven by the following factors:
· Indirect wages and salaries reached EGP 152 million in Q1 2026,
up 24% year-on-year, reflecting annual salary adjustments, selective headcount
additions to support branch expansion and newer business lines, as well as
well as FX translation effects on Jordanian and Saudi payroll costs following
the depreciation of the Egyptian pound.
· Advertising and marketing expenses increased 54% year-on-year to
EGP 66 million, as IDH continued investing in brand visibility, patient
acquisition campaigns, and promotional initiatives, particularly in Saudi
Arabia in support of the ongoing ramp-up of Biolab KSA and the expansion of
the Group's specialised diagnostics platform.
Selling, General, and Administrative Expenses
EGP mn Q1 2025 Q1 2026 Change
Wages & Salaries 123 152 24%
Accounting and Professional Fees 41 47 14%
Market - Advertisement expenses 43 66 54%
Other Expenses - Operation 46 61 34%
Depreciation & Amortisation 10 11 8%
Impairment Loss on Trade and Other Receivable 7 4 -46%
Travelling and Transportation Expenses 8 10 15%
Other Income -11 -1 -90%
Total 265 350 32%
EBITDA
IDH reported EBITDA of EGP 611 million in Q1 2026, representing a 23%
year-on-year increase compared with EGP 498 million in Q1 2025. EBITDA margin
recorded 29.5%, compared with 31.5% in the prior-year quarter. The
year-on-year margin contraction primarily reflects temporary operating
deleverage associated with Ramadan and Eid seasonality, pre-operating expenses
related to a new Al Borg Scan branch, and increased marketing and promotional
spending, particularly in support of the continued ramp-up of Biolab KSA and
broader patient acquisition initiatives across key markets.
EBITDA by Country
In Egypt, IDH generated EBITDA of EGP 560 million in Q1 2026, up 25%
year-on-year from EGP 449 million in Q1 2025. EBITDA margin recorded 31.8%,
compared with 34.3% in the prior-year quarter.
In Jordan, Biolab reported EBITDA of JOD 783 thousand in Q1 2026, compared
with JOD 864 thousand in Q1 2025. EBITDA margin recorded 22.4% versus 26.2% in
the prior-year period, reflecting the impact of promotional pricing
initiatives and continued investment in patient acquisition and loyalty
programmes aimed at supporting long-term volume growth and market positioning.
In Nigeria, Echo-Lab continued to build on its operational turnaround,
reporting EBITDA of NGN 144 million in Q1 2026, compared with NGN 65 million
in Q1 2025. EBITDA margin improved to 13.9%, versus 7.7% in the prior-year
quarter, supported by pricing adjustments, improved operating leverage, and
continued cost rationalisation efforts.
In Saudi Arabia, Biolab KSA recorded EBITDA losses of SAR 0.6 million in Q1
2026, compared with losses of SAR 1.0 million in Q1 2025. EBITDA margin
improved significantly to negative 26%, compared with negative 125% in the
prior-year period, reflecting the continued ramp-up in revenues, stronger
utilisation of fixed costs, and early-stage operating leverage as the business
scales its operations across the Kingdom.
Regional EBITDA in Local Currency
Q1 2025 Q1 2026 Change
Egypt EBITDA (EGP mn) 449 560 25%
Margin 34.3% 31.8% -2.5 pts.
Jordan EBITDA (JOD k) 864 783 -9%
Margin 26.2% 22.4% 3.8pts
Nigeria EBITDA (NGN mn) 65 144 121%
Margin 7.7% 13.9% 6.2 pts.
Saudi Arabia EBITDA (SAR mn) (1.0) (0.6) -43%
Margin -125% -26% 99 pts
Interest Income / Expense
IDH recorded interest income of EGP 60 million in Q1 2026, compared with EGP
54 million in Q1 2025, representing a 10% year-on-year increase. The
improvement reflects the Group's higher average cash balances during the
quarter, supported by continued strong operating cash flow generation and
healthy liquidity levels.
Total interest expense(5) increased to EGP 70 million in Q1 2026, compared
with EGP 48 million in Q1 2025, representing a 47% year-on-year increase. The
increase was primarily attributable to:
· Interest on leases rising to EGP 39 million in Q1 2026, up 26%
year-on-year, reflecting the continued expansion of the Group's branch network
and the associated lease liabilities under IFRS 16.
· Interest expense on borrowings increasing significantly to EGP 20
million, compared with EGP 5 million in Q1 2025, primarily due to higher
average debt balances following the loan drawdown related to the Cairo Ray
acquisition, alongside elevated financing costs during the period.
· Bank charges increasing modestly to EGP 6 million in Q1 2026,
compared with EGP 5 million in the prior-year quarter, in line with higher
transaction volumes and continued business growth across the Group.
It is important to note that IDH's interest-bearing debt(6) (excluding accrued
interest) increased during Q1 2026 to reach EGP 421 million as at 31 March
2026, from EGP 427 million at year-end 2025. The increase is due to a loan
withdrawal for the acquisition of Cairo Ray.
Interest Expense Breakdown
EGP mn Q1 2025 Q1 2026 Change
Interest on Leases 31 39 26%
Interest Expenses on Financial Obligations 7 5 -29%
Interest Expenses on Borrowings(7) 5 20 335%
Bank Charges 5 6 11%
Total Interest Expense 48 70 47%
5 Interest expenses on medium-term loans include EGP 20 million in Q1 2026
(EGP 4 million in Q1 2025) related to the Group's facility with Kuwait Finance
House (KFH) - formerly Ahli United Bank (AUB).
6 IDH's interest-bearing debt as at 31 March 2026 included EGP 390 million
(EGP 403 million as at 31 December 2025) related to its facility with Kuwait
Finance House (KFH) - formerly Ahli United Bank (AUB) (outstanding loan
balances are excluding accrued interest for the period).
7 Interest expenses on medium-term loans include EGP 20 million in Q1 2026
(EGP 4 million in Q1 2025) related to the Group's facility with Kuwait Finance
House (KFH) - formerly Ahli United Bank (AUB).
Foreign Exchange
IDH recorded a foreign exchange gain of EGP 145 million in Q1 2026, compared
with a foreign exchange gain of EGP 31 million in Q1 2025. The foreign
exchange gain primarily relates to the revaluation of intercompany balances
denominated in currencies different from the respective entities' functional
currencies. The higher gain recorded during the quarter reflects increased
pressure on the Egyptian pound and the resulting impact on the revaluation of
foreign currency-denominated balances across the Group.
Taxation
Tax expenses, including current and deferred tax, amounted to EGP 154 million
in Q1 2026, compared with EGP 152 million in Q1 2025. IDH's effective tax rate
declined meaningfully year-on-year to 26% in Q1 2026, compared with 38% in the
prior-year quarter. The decline in effective tax rate for both quarters
compared to IDH's historical averages is primarily due to the increase in
foreign exchange gain recorded during the periods as a result of intercompany
transactions. It is important to highlight that there is no tax payable at the
level of IDH's two holding companies.
Taxation Breakdown by Region
EGP mn Q1 2025 Q1 2026 Change
Egypt 145 151 4%
Jordan 5.3 1.2 -77%
Nigeria 0.1 0.2 230%
KSA 1.6 1.6 3%
Total Tax Expenses 152 154 2%
Net Profit
IDH recorded a net profit of EGP 437 million in Q1 2026, representing a 78%
year-on-year increase from EGP 245 million in Q1 2025. Net profit margin
expanded significantly to 21.1% in Q1 2026, compared with 15.5% in the
prior-year quarter. The strong bottom-line growth was primarily driven by the
significant increase in foreign exchange gains recorded during the quarter,
reflecting the revaluation of foreign currency-denominated intercompany
balances amid increased pressure on the Egyptian pound. Excluding foreign
exchange gains in both periods, adjusted net profit rose 36% year-on-year to
EGP 292 million in Q1 2026, with the associated adjusted net profit margin
improving to 14.1% compared with 13.5% in Q1 2025, highlighting the continued
strength of the Group's underlying operating performance despite seasonal and
operational pressures during the quarter.
ii. Balance Sheet Analysis
Assets
Property, Plant and Equipment (PPE)
IDH recorded PPE cost of EGP 4,195 million as at 31 March 2026, up from the
EGP 3,900 million as at year-end 2025. The increase primarily reflects the
addition of new branches across key markets, continued investments in
laboratory and radiology equipment, the renovation and upgrade of existing
locations to enhance service quality and operational capacity, and the
acquisition of Cairo Ray.
Total CAPEX Addition Breakdown - Q1 2026
EGP mn Q1 2026 % of Revenue
Leasehold Improvements/new branches 136 7%
Radiotherapy (Cairo Ray acquisition) 2 0.1%
Al-Borg Scan Expansion 3 0.1%
CAPEX Additions 141 7%
Translation Effect 155 8%
Disposals (1) -0.1%
Total Increase in PPE Cost 295 14%
Trade Receivables and Provisions
Net trade receivables stood at EGP 1,145 million as at 31 March 2026, compared
with EGP 996 million at year-end 2025. Days on Hand (DOH) stood at 126 days,
compared with 122 days at the end of 2025.
Meanwhile, provision charges for doubtful accounts in Q1 2026 stood at EGP 4
million, down from EGP 7 million in Q1 2025.
Inventory
As at 31 March 2026, IDH's inventory balance stood at EGP 666 million,
compared with EGP 424 million at year-end 2025. Meanwhile, Days Inventory
Outstanding (DIO) stood at 131 days, versus 94 days at 31 December 2025. The
increase reflects a deliberate inventory build-up strategy implemented by
management to secure the availability of critical medical supplies and test
kits amid heightened regional tensions and ongoing uncertainty surrounding
global supply chains and logistics routes.
Cash and Net Debt
Cash balances and financial assets at amortised cost reached EGP 2,319 million
as at 31 March 2026, compared with EGP 2,090 million at year-end 2025,
reflecting strong operating cash generation during the year.
EGP mn 31 December 2025 31 March 2026
Treasury Bills 123 178
Time Deposits 1,604 1,454
Current Accounts 326 643
Cash on Hand 37 43
Total 2,090 2,319
IDH's net cash(8) balance recorded EGP 728 million as at 31 March 2026,
compared to a net cash of EGP 472 million as at year-end 2025.
EGP mn 31 December 2025 31 March 2026
Cash and Financial Assets at Amortised Cost(9) 2,090 2,319
Lease Liabilities Property* (1,006) (999)
Total Financial Liabilities (Short-term and Long-term) (180) (170)
Interest-Bearing Debt ("Medium Term Loans")** (432) (422)
Net Cash/(Debt) Balance 472 728
Note: Interest Bearing Debt includes accrued interest for each period.
*If excluding Lease Liabilities Property (IFRS 16), IDH would have recorded
net cash of EGP 1,728 million.
**Includes accrued finance cost.
Lease liabilities and financial obligations related to property stood at EGP
999 million as at 31 March 2026, compared with EGP 1,006 million at year-end
2025, reflecting ongoing lease repayments across the Group's branch network.
Meanwhile, total financial liabilities, including short- and long-term
obligations related primarily to equipment financing, recorded EGP 170 million
as at 31 March 2026, compared with EGP 180 million at 31 December 2025.
Finally, interest bearing debt(10) (including accrued interest) reached EGP
422 million at 31 March 2026, up from EGP 432 million at year-end 2025.
8 The net cash/(debt) balance is calculated as cash and cash equivalent
balances including financial assets at amortised cost, less interest-bearing
debt (medium term loans), finance lease and right-of-use liabilities.
9 It is worth noting that some term deposits and treasury bills cannot be
accessed for over three months and are therefore not treated as cash. Term
deposits which cannot be accessed for over three months stood at EGP 336
million at 31 March 2026 (31 December 2025: EGP 336 million). Meanwhile,
treasury bills not accessible for over three months stood at EGP 128 million
(31 December 2025: EGP 83 million).
1(0) IDH's interest-bearing debt as at 31 March 2026 included EGP 390 million
to its facility with Kuwait Finance House (KFH) - formerly Ahli United Bank
(AUB) (outstanding loan balances are excluding accrued interest for the
period).
Liabilities
Trade Payable(11)
As at 31 March 2026, IDH's trade payables stood at EGP 726 million, up from
EGP 563 million at year-end 2024. Meanwhile, Days Payable Outstanding (DPO)
recorded 155 days, compared with 112 days at 31 December 2025.
Put Option
The put option current liability stood at EGP 722 million as at 31 March 2026,
up versus the EGP 629 million at 31 December 2025, and is related to both:
· The option granted in 2011 to Dr. Amid, Biolab's CEO, to sell his
stake (40%) to IDH. The put option is in the money and exercisable since 2016
and is calculated as seven times Biolab's LTM EBITDA minus net debt.
· The option granted in 2018 to the International Finance
Corporation from Dynasty - shareholders in Echo Lab - and it is exercisable in
2024. The put option is calculated based on fair market value (FMV).
It is important to note that the put option previously included as part of the
agreement between IDH, Biolab and Izhoor in Saudi Arabia has been removed
following IDH's acquisition of Izhoor's entire 49% stake in Biolab KSA, which
was concluded in December 2024. Biolab KSA is now owned 79% by IDH and 21% by
its Jordanian subsidiary Biolab.
(1 1 ) Accounts payable is calculated based on average payables at the end of
each period.
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