NNIT continued to execute on the carveout of the Group’s infrastructure business, sustained the efforts to consolidate global delivery capabilities in Q3 2022, while seeing improved earnings in line with expectations.
Financial highlights for the third quarter 2022
- Group revenue increased 5.7% (-1.3% organic) to DKK 738 million, primarily due to acquisitions and moderate growth in the Life Sciences Solutions and Cloud & Digital Solutions business units.
- The operating profit before special items increased to DKK 30 million from DKK 21 million in Q3 2021 driven by an improved utilization rate following capacity adjustments. As a result hereof, the operating profit margin increased to 4.1% before special items from 3.0% in Q3 2021, and from -1.5% in Q2 2022.
- Special items amounted to DKK 50 million mainly comprised of restructuring costs, including costs related to the divestment of the Group’s infrastructure operations.
- The Group’s infrastructure operations remain classified as continuing operations due to the current state of the business and the ongoing carve-out work.
Business highlights
- NNIT continued to execute on the carveout of the Group’s infrastructure business as well as selected parts of its Cloud & Digital Solutions business unit.
- Group company SCALES won a multiyear contract with Lantmännen Unibake on a global ERP rollout worth a double-digit DKK million amount.
- The order backlog for 2022 stood at DKK 2,759 million at the end of September, corresponding to a decrease of 1.1% compared to the same time last year and an increase of 37% from the beginning of the year.
- NNIT committed to the Science Based Targets initiative (SBTi) and intends to set both short-term and long-term targets for reduction of CO2 emissions.
- On 25 August, NNIT announced that Carsten Ringius will join as CFO from December 1, 2022, as CFO Pernille Fabricius assumes a new role as Executive Vice President for Strategy, Transformation and M&A.
Outlook
- The temporary suspension of NNIT’s 2022 outlook is maintained.
Pär Fors, CEO of NNIT, comments: "We saw a continuation of the pickup in revenue and earnings in the third quarter and maintained our focus on streamlining our outsourcing organization and completing the carveout of our infrastructure business to establish NNIT as a highly specialized IT services provider with two strongly positioned business units. The process is progressing based on constructive and thorough dialogue with customers and stakeholders."
Conference call
On November 2, 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 SCALES Excellis Health Solutions, SL Controls, and prime4services. Read more at www.nnit.com.
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