Q3 2023 key highlights
- The positive trajectory from the first half of 2023 continued through the third quarter. The improvement of performance is in line with the upgraded guidance provided in August and emphasizes the positive direction set with the new strategy.
- Solid revenue growth of 19% to DKK 453m compared to Q3 2022 driven by more business with existing customers and new logos.
- The group operating profit before special items increased to DKK 26m, equal to a group operating profit margin of 5.8%. The margin expansion of 5%-points compared with same quarter last year is due to improved business performance leveraging a lower cost base.
- The 2023 financial outlook for revenue growth of around 15% and group operating profit margin excl. special items of around 6% is unchanged.
On September 18, NNIT hosted a capital markets day elaborating on its new strategic direction and financial aspirations towards 2026. For the period 2024-2026, the aspiration is to generate a compound annual organic growth rate of around 10% and to deliver a yearly average group operating profit margin of around 10-13% excluding special items. The continued solid performance in the third quarter is a result of a “more focused” NNIT. We will improve business performance across regions by increasing utilization, expansion of engagements, new customers, and stronger focus on profitability. With the new strategy and regional organizational structure, NNIT continues to focus on enhancing global coordination and leveraging synergies across regions.
Pär Fors, President and CEO of NNIT, says: “Q3 is the first full quarter after the launch of the new strategy, and we are really pleased to see a continued positive development in our business performance, revenue and profitability. This further supports that we are on the right track with our new strategic direction, and we remain fully focused on delivering in accordance with our guidance and longer-term aspirations.”
Financial overview - selected key figures
| NNIT A/S, DKK million | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | FY 2022 |
| Revenue | 453 | 380 | 1,290 | 1,104 | 1,500 |
| Revenue growth, % | 19.1% | n/a | 16.8% | n/a | n/a |
| Revenue growth, organic % | 11.1% | n/a | 11.3% | n/a | n/a |
| Group operating profit excl. special items | 26 | 3 | 72 | -31 | -6 |
| Group operating profit margin excl. special items, % | 5.8% | 0.8% | 5.6% | -2.8% | -0.4% |
| Special items | 16 | 51 | 61 | 155 | 278 |
| Group operating profit incl. special items | 10 | -48 | 11 | -186 | -285 |
| Depreciation, amortization and impairment | 7 | 11 | 27 | 50 | 64 |
CONFERENCE CALL
November 9, 2023, at 9:30 AM CET: Webcast link
Dial in information:
| United Kingdom: | +44 20 3936 2999 |
| Denmark: | +45 89 87 50 45 |
| Sweden: | +46 10 884 80 16 |
| US: | +1 646 664 1960 |
Participant Access code: 617714
For more information, please contact:
Investor Relations
Carsten Ringius
EVP & CFO
Tel: +45 3077 8888
carr@nnit.com
Media Relations
Tina Joanne Hindsbo
Media Relations Manager
Tel: +45 3077 9578
tnjh@nnit.com
ABOUT NNIT
NNIT is a leading provider of IT solutions to life sciences internationally, and to the public and enterprise sectors in Denmark.
We focus on high complexity industries and thrive in environments where regulatory demands and complexity are high.
We advise on and build sustainable digital solutions that work for the patients, citizens, employees, end users or customers.
We strive to build unmatched excellence in the industries we serve, and we use our domain expertise to represent a business first approach – strongly supported by a selection of partner technologies, but always driven by business needs rather than technology.
NNIT consists of group company NNIT A/S and subsidiaries SCALES, Excellis Health Solutions and SL Controls. Together, these companies employ more than 1,700 people in Europe, Asia and USA.
Read more at www.nnit.com
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