NNIT made progress on strategic initiatives to improve performance and maintains full-year outlook despite decline in revenue and earnings in Q1 2022.
Financial highlights
- Group revenue declined by 4.1% (-7.5% organic) to DKK 701 million as expected following a lower contribution from the Global Infrastructure Agreement with Novo Nordisk. The decrease was partly outweighed by growth in Life Sciences Solutions.
- The operating result before special items decreased to DKK -9 million from DKK 48 million due to the renegotiation of the Novo Nordisk contract and a temporary decline in capacity utilization after cancellation of a large International Life Sciences Solutions project and customer postponement of a large ERP implementation. The operating profit margin declined to -1.3% compared to 6.6% in Q1 2021.
- Special items amounted to DKK 35 million and related mainly to restructuring costs and impairment of the headquarter building.
- NNIT’s external reporting structure has been revised to reflect the three business units –Life Sciences Solutions, Cloud & Digital Solutions and Hybrid Cloud Solutions – ensuring alignment with the Group’s new organizational structure as of January 1, 2022.
Business highlights
- The strategic efforts to consolidate global delivery capabilities were accelerated with the initiation of a significant transformation and geographical relocation of the Group’s outsourcing organization, which will reduce cost.
- NNIT completed the acquisition of prime4services, a leading European Manufacturing Execution System implementation consultancy, further strengthening the Group’s capabilities within Life Sciences Production IT.
- Significant new contracts and renewals secured across all business units, including a six-year contract with ATP and a five-year contract with Banedanmark in continuation of the signings with e-nettet and the Nordic Regional Security Coordinator in Q4 2021.
- The order backlog for 2022 amounted to DKK 2,194 million at the end of Q1 2022, corresponding to decrease of 7.8% compared to the same time last year, and an increase of 8.8% from the beginning of the year.
Outlook
- NNIT maintains the 2022 outlook for revenue growth of 2-5% with an operating profit margin before special items of around 5%. The structural transformation of the Group is still expected to lead to special items up to the same level as in 2021.
Pär Fors, CEO of NNIT, comments: "We continued to make headway with the strategic initiatives to build a stronger NNIT with the introduction of new business units, the acquisition of prime4services and signing of key contracts with new and existing customers in Q1 2022. Our financial results were negatively impacted by a temporary decline in capacity utilization, and we remain confident that we will reach our targets for the full-year".
Conference call
On May 6, 2022 at 9:30 CET, NNIT hosts a teleconference, which can be accessed here or at www.nnit.com under ‘Investors – Events & Presentations’.
Contacts for further information
Pernille Fabricius, EVP & CFO
Tel: +45 3077 9500
pnfa@nnit.com
Tina Joanne Hindsbo, Media Relations Manager
Tel: +45 3077 9578
tnjh@nnit.com
The NNIT Group provides a wide range of IT and consulting services internationally.
In Denmark, where the Group HQ is based, we are one of the leading IT companies, servicing both private and public sector customers across all industries. In the rest of Europe, Asia and USA, we are solely focused on companies within life sciences.
Supporting the entire supply chain, we help optimize internal company processes, production, sales and customer experiences:
We advise, build, operate and support, enabling digital transformation and customers to reap the full potential of their organizations. Our role is to foster innovation and make the mark our customers and we aspire to.
The NNIT Group consists of group company NNIT A/S and subsidiaries Valiance, SCALES Excellis Health Solutions, SL Controls, and prime4services. Read more at www.nnit.com.
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