Press release -
Financial results for Q1 2022 just released: Maintaining full-year outlook
In Q1 2022, NNIT saw a decline in revenue and earnings mainly due to a temporary decline in capacity utilization. Positively, a number of significant contracts were signed, and strategic initiatives progressed as planned. Outlook for the full-year is maintained.
Please refer to https://investor.nnit.com for the full company announcement re the financial results for Q1 2022.
CEO Pär Fors 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".
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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.
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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.
- 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.
Group Financial Review
Selected business highlights
- 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 contract 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.
- 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.
Outlook for 2022
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.
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Together we make a mark in business and society; bringing digital transformation to life
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 and SL Controls. Together, these companies employ over 3,000 people in Europe, Asia and USA.
Read more at www.nnit.com
