Integrated Diagnostics Holdings plc

Hello, everyone. Welcome to IDH's first half of 26 results conference call. I'm pleased to be joined with Dr. Hend El Sherbini, Chief Executive Officer, Sherif El Zeiny, Vice President and Group CFO, and Meerat Ahmed, Investor Relations Officer. As usual, the company will start with a presentation on recent results and developments and then we'll open the floor for Qiyani. IDH management, please go ahead.

Thank you Ahmed. Good afternoon ladies and gentlemen. Thank you for joining us for IDH first half 2026 analyst call. My name is Meerat Ahmed and I am IDH investment section head and investor relations officer. I'm pleased to be joining you today in this capacity and I look forward to working closely with the investment community going forward. Joining me today are Dr. Hend El Sherbini, our CEO, and Mr. Sherif El Zeiny, our CFO. Dr. Hend will begin the call with a summary of the main highlights from the first half. After that, I will discuss the main macroeconomic and geopolitical trends seen across our markets before Sherif offers a deeper analysis of our financial performance and will then end the call with a Q&A session. With that, I will hand it over to Dr. Hend for her introduction. Dr. Hend.

Thank you Mirette and good afternoon everyone. I'm Dr. Hend El Sherbini, CEO of IDH. I'm pleased to report a strong first-half performance with IDH delivering growth-based operational and financial growth across our footprint while sustaining healthy profitability. The results we are presenting today reflect the resilience of demand across our markets and the continued strength of our operating platform, supported by network expansion, deeper patient engagement, service diversification and disciplined execution. During the first half, we continue to strengthen our leadership in Egypt, maintain stable progress in Jordan, build on the turnaround achieved in Nigeria and accelerate the ramp-up of our Saudi Arabia operations. We are also pleased with the group's ability to deliver sustained profitability while continuing to invest for future growth, particularly in radiology, radiotherapy, specialized diagnostics, and our broader regional footprint. Turning to our performance in more detail, IDH delivered 37% revenue growth year-on-year in H1 2026, with revenues reaching 4.9 billion Egyptian pounds. Growth was supported by both volume and value. with test volumes increasing 20% year-on-year for 23.6 million tests performed and average revenue per test rising 14% to 206 pounds. During the period, we served 4.9 million patients reflecting year-on-year growth of 14%. These trends also helped us further strengthen average tests per patient, which reached a new record of 4.9 tests per encounter, compared with 4.6 in H1 2025. This improvement reflects deeper patient engagement, stronger referral flow, and continued success in expanding cost service utilization across our growing platform. In Egypt, momentum remained strong during the first half, with revenues increasing 41% year-on-year to 4.2 billion Egyptian pounds. Growth was supported by 21% increase in tests performed and 16% rise in average revenue per test, reflecting continued strength in demand, price optimization and improving diagnostic links. Egypt remained the core engine of growth performance, contributing around 86% of total revenue in 2021-2026 and continued to demonstrate scale, resilience and strong operating fundamentals. The continued expansion of our physical network in Egypt remained a key driver of growth and accessibility. Over the past 12 months, we added 157 new branches in Egypt, bringing our national network to 793 locations As of the 30th of June 2026. These new sites continue to deepen our presence across greater Cairo and regional cities, supporting stronger access for both contract and walk-in patients. Our household service also remained a core pillar of our Egyptian operation, accounting for approximately 22% of Egypt's revenues during the first half. The service continues to benefit from strong patient adoption, enhanced digital booking capabilities, efficient logistics and the strength of our nationwide network. Our radiology and radiotherapy platform continues to play an important role in our long-term strategy to build a more integrated diagnostics platform. During H1-2026, combined radiology and radiotherapy, revenues reached 220 million Egyptian pounds, up 79% year-on-year. Growth was supported by both higher volumes and improved pricing, with total scans and radiotherapy procedures increasing 40% year-on-year to 162,000, while average revenue per scan increased 28% to 1,358 pounds. The platform served 121,000 patients during the period up 41% year-on-year and expanded to nine branches including eight report scan branches and one radiotherapy facility. The continued expansion of these capabilities strengthens our position in higher value specialized diagnostics and oncology related services and expands our ability to serve patients and repairing physicians across a broader range of needs. In Saudi Arabia, our newest geography continued to show strong progress during the first half. Biolab KSA generated 5.5 million Saudi riyals in revenue in the H1-2026, representing 191% year-on-year growth. In Egyptian pound terms, revenues increased 199% to 76 million pounds. Growth was driven by a sharp increase in patient and test volume, with patients served increasing 144% year-on-year, and tests performed rising 194%. This momentum reflects growing brand awareness, stronger utilization across the existing branch network, and continued ramp-up following expansion to five operational branches. While the business remains in its early stages, the progress achieved so far continues to reaffirm our confidence in Saudi Arabia as a key pillar in IDH regional growth strategy. As always, profitability remains the core focus, and we are pleased to have delivered sustained profitability while continuing to invest for long-term growth. Gross profit increased 41% year-on-year, to 2.1 billion Egyptian pounds while EBITDA increased 38% year-on-year to 1.6 billion Egyptian pounds. Gross profit margins improved to 43.3% from 42% in H1 2025, supported by procurement optimization, stronger operating leverage and disciplined cost management. EBITDA margin recorded 33.9%, broadly in line with 33.6% last year, despite ongoing investment in Biolab KSE and the expansion of our radiology and radiotherapy platform. At the bottom line, the net profit increased 47% year-on-year to 839 million Egyptian pounds, excluding foreign exchange gains and losses in both periods. Adjusted net profit increased 40% to 802 million pounds, with the adjusted net profit margin improving to 16.5%. We are also pleased to see Nigeria continue generating positive EBITDA during the period, while Saudi Arabia materially narrowed EBITDA losses as the utilization increased. As we look ahead, our priorities remain unchanged. We will continue to deepen our leadership in Egypt, expand our radiology and radiotherapy and specialized diagnostics platforms, accelerate the disciplined ramp-up of Saudi Arabia, and build on the profitability improvements achieved in Nigeria. Across the group, we remain focused on operational efficiency, digitalization, procurement optimization, and enhancing the patient experience. At the same time, management continues to closely monitor evolving macroeconomic conditions and region developments, which may introduce volatility across parts of our footprint. Overall, we believe IDH remains well positioned to build on its strong first-half performance and continue delivering sustainable long-term growth. With that, I'll hand the call over Thank you very much Dr. Hend. During the first half of 2026, we continued to operate against a mixed but manageable macroeconomic backdrop across our markets. In Egypt, inflation remained well below the level seen prior years.