Dr. Hend El-Sherbiny, CEO of Integrated Diagnostic Holding Company – IDH – said that it aims to complete its expansion plan in the local market by adding between 30 to 35 branches during the year.
She added that “IDH” – the owner of the Al-Borg and Laboratory chains – is the first and largest medical analysis and diagnostics company in the private sector in Egypt, and it operates in Egypt, Sudan, Jordan and Nigeria and includes more than 480 branches.
She stressed – in an exclusive interview with Al Mal – that her company’s competitive advantage in the markets in which it operates comes from its commitment to quality and providing the best services, explaining the company’s endeavor to expand outside Africa and penetrate the markets of Asia and the Middle East.
She pointed out that since the initial public offering of the company’s shares on the London Stock Exchange in 2015, our goal has been to provide an excellent opportunity for investors to take advantage of the fast-growing healthcare markets.
She pointed out that the company’s management saw that there is a distinct opportunity that can be provided in the Egyptian market through the double listing of IDH shares, which have a market value of more than 10 billion pounds on the Egyptian Stock Exchange.
It is noteworthy that the trading of “IDH” shares began on the Egyptian Stock Exchange on May 20 without issuing any new shares, as it registered 5% of its shares for free trading (equivalent to 30 million shares) in Egyptian pounds, so that this restriction is complementary to the trading of the company’s shares. Currently on the London Stock Exchange in dollars.
El-Sherbiny said that IDH became the first Egyptian company in the healthcare sector to be double-listed on the Egyptian Stock Exchange and the London Stock Exchange, following the success of the public offering of its shares on the London Stock Exchange in 2015 as the first Egyptian healthcare company listed on the London Stock Exchange.
She added that the offering came after the company launched a series of successful promotional meetings, which reflected the local investment community’s desire to benefit from the company’s growth process.
She explained that the company’s stock is an opportunity for investors located in Egypt, who are sometimes unable to access shares traded in the global stock market, as Egyptian investors interested in dealing on the company’s shares can invest in a huge entity in the field of healthcare through the local market.
She pointed out that the listing process will contribute to consolidating the company’s vision and enhancing its position in the Egyptian market, as well as diversifying the investor base with the entry of institutions and individuals who have a desire to invest through the Egyptian Stock Exchange in the company’s ownership structure, in addition to international investors in emerging markets, which contributes to improving liquidity and increasing Trading volume on stocks.
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She emphasized that IDH has a specific business plan and growth strategy, which allows investors (institutions and individuals) to easily access the shares traded on the London Stock Exchange.
On the company’s plan to expand in the local market and outside Egypt, El-Sherbiny explained that IDH always seeks to seize good opportunities that ensure the achievement of the company’s goals of expansion, development and development, as well as providing the best diagnostic, analysis and radiology services.
She explained that her company seeks to expand outside the African continent and establish new investments in Asia, in addition to the Middle East, especially that the healthcare sector is one of the most important strategic sectors, which represents one of the sectors that attract investments.
She stated that IDH puts healthcare for its customers at the top of the priorities, in the context of maintaining the market share, explaining that the competitive advantage comes from a commitment to quality and providing the best diagnostic services and medical analyses of all kinds.
She indicated that her company is constantly working on geographical expansion by increasing the number of branches in the countries in which it operates, and is keen to expand the branch network from 30 to 35 branches per year, while providing it with the best equipment and technology and providing the best experts in the field of laboratory tests, analyzes and diagnosis.
She stressed that IDH will continue its expansion plan to meet the needs of patients and doctors, in addition to following all that is new in the field of healthcare, diagnosis and analysis.
She pointed out that during 2018, the company began expanding in the radiology sector, with the opening of the second branch of the Scan Tower in February 2020, confirming good progress towards the opening of the third branch of the Scanning Tower, and the company aims to reach six branches in the coming months.
She stressed that regional expansion is part of the company’s expansion strategy, as the company is always keen to search for any opportunities that could contribute to maintaining its leadership in the markets in which we operate, whether through expansion in the countries in which we provide our services or in new countries, and this will be done. Announce it as soon as you get confirmed opportunities.
We maintain a strong financial position that reflects the management’s ability to adapt to the changes in the market as a result of the Corona pandemic
Regarding the company’s recent business results, El-Sherbiny explained that despite the Corona pandemic and its negative effects on the whole world, IDH achieved outstanding results and strong performance during the year 2020; It recorded revenues of about 2.7 billion pounds – an increase of 19% compared to 2019 – and the company recorded profits of 609 million pounds – equivalent to an increase of 21%, while the EBITDA margin increased to 44%.
She emphasized that IDH maintains a strong financial position characterized by strong financial liquidity, and the company’s strong performance during 2020 reflects the flexibility of our business model and the management’s ability to adapt to the changes taking place in the market, especially after the turmoil caused by the “Covid-19” pandemic last year.
We expect a strong performance in 2021
El-Sherbiny expected that IDH will continue to perform strongly in 2021, with the support of the existing expansions and the increase in the number of branches in the countries in which we operate, in addition to the business model based on everything that is modern in the field of diagnosis, medical analysis and distinguished services, as well as a growth plan. The future of the company is supported by its strong financial position and cash balances with the company, which exceed one billion pounds.
Our share exceeds half in the private laboratories market in Egypt
With regard to the geographical spread in Egypt, she said that the company’s share of the private laboratory network market in Egypt exceeds half, through the number of branches of the Al-Borg and Laboratory for Medical Analysis series in Egypt, amounting to about 429 branches in Egypt, including “MegaLab”, which is the largest central laboratory in the Middle East with a capacity of 20 thousand analyses per hour.
She added that regional expansion is part of the company’s expansion strategy, as we always study any opportunities that can contribute to maintaining leadership in the markets in which it operates, whether through expansion in the countries in which we operate or in new countries.
She stated that inside Egypt, the company establishes new branches and laboratories, but outside Egypt it acquires laboratories and develops them with the latest devices, equipment and technology in order to increase the medical services that are provided.
She pointed out that IDH is always looking for opportunities within the countries of Africa, the Middle East and Asia, which are characterized by developing economies and strong demographics that need high-quality healthcare services.
She explained that the company’s strategy focuses on entering countries with which our business model fits to take advantage of healthcare trends, which makes us able to acquire a large share in them.
She indicated that her company recently obtained a financing package of $45 million from the International Finance Corporation for an 8-year period to finance the company’s growth plans across current markets and enter new markets with the aim of expanding the provision of high-quality diagnostic services in emerging markets with high growth rates, in addition to enhancing Its current presence is in Egypt, Jordan, Nigeria and Sudan.
She stated that the company currently provides, through its laboratories, more than 2,000 medical analyzes and diagnoses with international standards in more than 480 branches in Egypt, Sudan, Jordan and Nigeria; 429 of them are in Egypt (through the laboratory, tower, and tower branches), and IDH includes MegaLab, the largest central laboratory for medical analysis in Egypt, with a capacity of more than 20 thousand analyzes per hour.
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On the company’s ability to deal with Corona during 2020, “Al-Sherbiny” said that the company’s branches have been affected since the beginning of the Corona pandemic in March 2020, due to two reasons, the first is that all countries have implemented mandatory restrictions to prevent the spread of the virus, including a complete closure, as happened in Jordan at the beginning of the epidemic. We were allowed to operate only two branches out of 19 in Jordan, and in Egypt a curfew was imposed as precautionary measures, so we reduced working hours.
As for the second reason, it is related to the fear that citizens have about hesitation or dealing directly with healthcare providers, which may increase their chances of exposure to infection.
She emphasized that this circumstance was dealt with effectively and quickly, as the scope of home-calling and follow-up services was expanded in both Egypt and Jordan, through which patients could take tests in their homes without the need to visit laboratories, and we also provided a home visit service for free in the first months of the pandemic.
“Al-Sherbiny” stated that profit margins amount to about 40%, which is the percentage that the company achieves permanently even before the pandemic, and this is due to the company’s size, capabilities, and efficiency of the agenda and services.
Conducting more than 30 million analyzes and serving 7 million patients through our branches in Egypt, Sudan, Nigeria and Jordan
And she continued: “We are the largest providers of diagnostic and analysis services among private laboratories in Egypt. We conduct more than 30 million analyzes and serve more than 7 million patients annually through our branches in Egypt, Sudan, Nigeria and Jordan, which makes us in a strong and distinguished position and earns us strong relationships with those concerned.”
She explained that the company’s share of the private laboratory networks market in Egypt exceeds half, through the number of branches of the Al-Borg and medical analysis laboratory chain in Egypt, amounting to about 429 branches in Egypt, including MegaLab, which is the largest central laboratory for the Middle East, with a capacity of 20 thousand analyzes per hour. , In addition to the branches of Alborg Scan radiology centers.
Regarding any acquisition opportunities in the local market, El-Sherbiny stressed IDH’s continuous aspiration to maintain leadership, which is what makes it deal with all appropriate opportunities to remain a strong group in emerging markets, in addition to the company’s adoption of a future strategy aimed at achieving four main goals to enhance the model. Business.
She said that the first goal is to continue expanding the reach of customers by increasing the number of branches from 30 to 35 annually; As well as increasing the number of tests for patients by providing medical analyzes and diagnoses.
She pointed out that the third goal is to expand into new markets geographically through selective acquisitions of approved value entities, as well as strengthening the company’s network by introducing new medical services with a prestigious brand and expertise.
She stated that the African continent remains a land of promising opportunities that can transform all challenges into distinct programs and projects, as there are many promising investment sectors in it in a way that attracts foreign investments from all sides, and the healthcare sector is one of the most important strategic sectors, which represents one of the sectors that attract investments.
She stressed that before entering any of the markets that the company aims to work in, the company studies it thoroughly and develops appropriate plans for it to work to provide its services in an appropriate and good manner for customers, whether for patients or doctors in that country, in addition to adhering to the laws and provisions regulating work in each country.
She added: “When we entered Nigeria, we saw great potential, as it is the largest African country, but the quality of its diagnostic and medical analysis services is low. So we decided to work in Nigeria, worked with partners on the ground, and renovated the facilities and equipment.”
And she continued, “We have trained the workers in our laboratories there, as human resources come at the top of the company’s priorities. Today, we have 12 branches serving the country through our “Eco-Lab” brand, and it is expected that we will increase the number of our branches there during the coming period, starting next year.”
It is worth noting that EFG Hermes and Renaissance Capital acted as an advisor to IDH in the double-listing process in the Egyptian Stock Exchange, while the role of legal advisor was assumed by the offices of Clifford Chance, Ogier and White & Case.
The Integrated Diagnostics Holding Company was established in May 2014, as a result of the merger of “Abraaj Capital” – which is currently being liquidated – for the Al-Borg laboratories and the laboratory, which were owned by the UAE company at the time.
In 2015, the Financial Group “Hermes” completed the process of offering the shares of “Integrated Diagnostics Holdings” on the London Stock Exchange with a value of 290 million dollars, by offering the equivalent of 43.5% of its shares. It was the first IPO of an Egyptian healthcare company on the London Stock Exchange.
