Press release -
Financial results for Q4 2021 just released: In line with expectations
In Q4, we saw continued strong growth within the Life Sciences International business while performance within the Private & Public segment remained weak. Once again, our Winning Solutions strategy gained traction, as it now constitutes 55% of NNIT’s revenue compared to 46% in the same period last year.
Please refer to investor.nnit.com for the full company announcement re the financial results for Q4 2021.
CEO Pär Fors comments:
"Q4 performed in line with expectations. International Life Sciences growth continued, and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the public segment. Focus is now on the new organizational structure and leadership to enhance the growth path and profitability. The organization has worked hard throughout the year to set the foundation for the new journey, and we are cautiously optimistic for the year to come".
- Group revenue decreased to DKK 738m, down 1.5% (-6.7% organic) from Q4 2020.
- Life Sciences (excluding Novo Nordisk Group) grew to DKK 262m, up 29% (7% organic).
- Winning Solutions now constitutes 55% of the total revenue (46% in Q4 2020).
- Net result is a profit of DKK 2m, (DKK 18m in Q4 2020).
Financial overview
Selected business highlights
- By the end of 2021, NNIT announced a major organizational change to create three distinct business units: Cloud and Digital Solutions; Life Sciences Solutions; Hybrid Cloud Solutions. The strategic rationale lies both in a diverse development in our customer base requiring a more unique approach in each market segment as well as need to speed up business development further in close alignment with our customer’s needs. This also enables a more transparent view on business unit performance with regards to maximization of revenue potential as well as cost optimization.
- Major wins: Outsourcing contract with the Nordic Regional Security Coordinator to deliver critical IT operation services. The value of the contract is expected to represent a low triple-digit DKK million amount. Outsourcing contract with e-nettet for infrastructure services and support concerning e-nettet’s portfolio of applications. The value of the contract is expected to represent a low triple-digit DKK million amount.
- In Q4, special items was significantly impacted by an DKK 29m impairment of a developed asset and DKK 27m of costs stemming from the continuous efforts related to efficiency improvements. Special items in 2022 are estimated at around DKK 100m related to optimization costs concerning office space as well as offshoring setup.
- End 2021, NNIT was named “Most attractive workplace in Denmark for IT consultants 2021” in the IT-company rank survey performed by the largest Danish publisher of media about technology and science ‘Teknologiens Mediehus’.
Outlook for 2022
Guidance as of January 28:
- Revenue growth of 2-5%
- Operating profit margin before special items of around 5%
- NNIT’s transformation into the new structure mentioned above, will potentially 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
