Integrated Diagnostics H2 Earnings Call Highlights
by Jessica Moore · The Cerbat GemIntegrated Diagnostics (LON:IDHC) executives said the group delivered a “very strong year” in 2025, citing double-digit volume growth, higher revenue per test, and expanding profitability as strategic initiatives around network expansion, service diversification, digitalization, and operational optimization gained traction.
On a results conference call hosted by EFG Hermes’ Hatem Alaa, CEO Hend El Sherbini said the company’s performance reflected “improving market conditions in key geographies” and the impact of initiatives implemented over the past two years. Management also flagged regional geopolitical uncertainty heading into 2026, including what El Sherbini described as “the escalation of the U.S.-Israel conflict with Iran in early 2026,” which she said could raise uncertainty in markets such as Jordan and Saudi Arabia.
2025 growth driven by volume and pricing/mix
El Sherbini reported 37% year-over-year revenue growth for 2025, supported by both higher testing volumes and a rise in average revenue per test. She said test volumes increased 11% across all operating geographies, helped by stronger patient engagement, deeper penetration in walk-in and corporate channels, and improving referral flows.
At the same time, El Sherbini said the group’s average revenue per test rose 24%, reflecting “a richer test mix,” broader uptake of radiology and specialized diagnostics, and pricing actions introduced earlier in the year. She added that the company’s average tests per patient reached 4.6 tests per encounter, which management framed as evidence of deeper patient relationships and more cross-service utilization.
Egypt remains the core engine; branch network expands
Management repeatedly pointed to Egypt as the primary driver of results. El Sherbini said Egypt contributed 84.6% of total revenue in 2025. Tarek Yehia, Director of Investor Relations, added that Egypt’s revenue rose 41% year-over-year, supported by volume growth and a “significant increase” in average revenue per test, particularly driven by radiology, radiotherapy, and higher-value diagnostics.
Network expansion in Egypt was a major theme. El Sherbini said IDH added 137 new branches in Egypt over the past 12 months, bringing the national total to 724 locations by year-end. In the Q&A, CFO Sherif El Zeiny said Egypt’s volume growth was driven by both new branches and existing locations.
House calls remained a meaningful contributor. El Sherbini said the group’s house call service represented “around 20% of Egypt’s revenues” and continues to serve as a strategic differentiator. Asked whether the contribution had reached saturation, she said the company is still expanding the service and sees “big room for growth,” noting that while the share is stable, the underlying revenue is increasing.
Radiology and radiotherapy: Cairo Ray acquisition and current revenue share
El Sherbini highlighted Al Borg Scan as a key element of IDH’s longer-term plan to build an integrated diagnostics platform. She said the group took an “important strategic step” in 2025 with the acquisition and integration of Cairo Ray for Radiotherapy, which broadened capabilities in radiotherapy and strengthened the company’s position in oncology diagnostics.
However, in response to an investor question about radiology revenue share, Yehia said radiology remains about 5% of revenue currently and is expected to increase over time “once the business is picking up more and more.”
Saudi ramp-up continues; Nigeria posts positive EBITDA; Sudan constrained
Internationally, management provided updates across several markets:
- Saudi Arabia: El Sherbini said Biolab KSA generated SAR 5 million in revenue in 2025, representing 252% year-over-year growth, as the network expanded to three branches. In the Q&A, El Zeiny said the company plans to add six branches in 2026 to reach nine branches by end-2026. Yehia also provided a SAR 18 million revenue target for 2026. El Zeiny said Saudi EBITDA is expected to “turn positive by 2028.”
- Nigeria: El Sherbini said Echo-Lab delivered a full year of positive EBITDA in 2025, which she described as a milestone in its turnaround. Yehia said improved operating conditions supported the turnaround strategy and reinforced confidence in Nigeria’s long-term potential.
- Jordan: Yehia said Jordan delivered revenue growth in both Egyptian pound and local currency terms, with test volumes up 21% year-over-year, supported by promotional, digital outreach, and loyalty initiatives.
- Sudan: Yehia said operations remained “significantly constrained” by conflict, with only one branch partially operating and no material change in the situation.
Margins expand; working capital improves; dividend declared
Management emphasized profitability gains in 2025. El Sherbini said cost ratios improved, with COGS-to-revenue falling to 57.3% and SG&A declining to 15% from 16.9% a year earlier. She reported gross profit margin of 42.7% (up from 38.1% in 2024) and EBITDA margin of 34.9% (up from 29.7%). She also said adjusted net profit increased 79% year-over-year.
El Zeiny provided additional detail, attributing margin expansion to operating leverage, cost discipline, and digitalization efforts. He said raw materials improved to 19.3% of revenue from 22% in 2024, while wages and salaries remained “well controlled” as a percentage of revenue. He cited higher wages and advertising/marketing within SG&A, reflecting salary adjustments, growth support, and marketing investments in Saudi Arabia as well as targeted campaigns in Egypt and Jordan.
On the bottom line, El Zeiny said reported net profit was EGP 1.3 billion in 2025, up 29% year-over-year, and noted that 2024 included elevated foreign exchange gains that affect comparability. On an adjusted basis, he said adjusted net profit rose 79% to EGP 1.26 billion, implying a 16.1% margin.
Liquidity also strengthened. El Zeiny said the cash conversion cycle improved to 104 days as of December 2025 from 155 days at the end of 2024, and that cash reserves rose to EGP 2.1 billion from EGP 1.7 billion, with net cash of EGP 472 million versus EGP 226 million the prior year.
The board declared a dividend of $0.0085 per share, totaling $4.9 million, which El Sherbini said reflects a commitment to shareholder value while maintaining flexibility for growth investments. In response to a question about capital returns, she said the company has approval for a buyback but “haven’t decided to do that,” calling it an idea under discussion. Yehia said the company is balancing investment and distributions and will revisit the payout if needed.
Looking ahead, management offered 2026 expectations during Q&A. El Zeiny said the group is targeting 25% sales growth in 2026, comprising roughly 10% price increases and 15% volume growth, while keeping EBITDA margin in the “same range” of around 33%-34%.
On cost exposure, El Sherbini said the company imports “all our kits,” adding there is “almost nothing” produced locally in Egypt. Addressing potential impacts from currency weakness and higher importation or raw material costs, El Zeiny said the business has not been affected so far and that the group has secured inventory coverage “till August.”
For expansion, management said it expects around 200 branch openings in 2026 across Egypt, Saudi, and Jordan, with El Sherbini clarifying the figure includes clinics and hospitals, not only traditional branches. Yehia added that about 9% of Egypt’s expansion is expected to come from hospitals and clinics, and said 2026 capex is expected to be around 5.9% of total sales versus 4.8% last year, with the main share directed to Egypt and allocations also for IT and warehouse needs, followed by Saudi Arabia.
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.