Press release -
Financial results for Q2 2022 just released: Temporary suspension of full-year outlook maintained
NNIT announced the transformative divestment of the Group’s infrastructure business, initiated the carve-out process and continued the efforts to consolidate global delivery capabilities in Q2 2022, which was marked by slower-than-expected sales performance. The temporary suspension of NNIT’s full-year outlook is maintained.
Please refer to investor.nnit.com for the full company announcement re the financial results for Q2 2022.
CEO Pär Fors comments:
"We took important steps in our strategy execution in the second quarter as we launched the transformative divestment of our infrastructure business to establish NNIT as a highly specialized IT services provider focusing exclusively on our core areas within IT services to the Life Sciences market and Cloud & Digital Solutions. While sales remained slower than expected in the quarter, we expect continued performance improvements and improved capacity utilization in the coming period".
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Group revenue increased 1.8% (-6.8% organic) to DKK 723 million driven by acquisitions and moderate growth in Life Sciences Solutions outweighed by slow sales overall and lower revenue from the Global Infrastructure Agreement with Novo Nordisk.
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The operating profit before special items decreased to DKK -11 million from DKK 36 million impacted by the renegotiated Novo Nordisk contract and temporarily lower capacity utilization. The operating profit margin declined to -1.5% before special items from 5.1% in Q2 2021.
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The Group’s infrastructure operations remain classified as continuing operations due the current state of the business and the ongoing carve-out work. Besides that, to increase transparency certain cost components from Group Companies have been reclassified to Sales and Administration costs from Production costs.
Group Financial Review
Selected business highlights
On 22 June, NNIT entered into an agreement to divest its Hybrid Cloud Solutions business unit as well as selected parts of its Cloud & Digital Solutions business unit, enabling the NNIT Group to center investments, competencies and sales force around the two core business areas, Life Sciences Solutions and Cloud & Digital Solutions.
NNIT won a major six-year contract for delivery of administrative IT systems and services to Danmarks Nationalbank with an estimated total contract value of DKK 1 billion and secured other significant contracts and renewals across business units in the quarter.
The order backlog for 2022 stood at DKK 2,572 million at the end of June, corresponding to a decrease of 2.7% compared to the same time last year and an increase of 28% from the beginning of the year.
Outlook for 2022
The temporary suspension of NNIT’s 2022 outlook is maintained.
Please read the full company announcement here.
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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, SL Controls and prime4services. Together, these companies employ over 3,000 people in Europe, Asia and USA.
Read more at www.nnit.com
