Financial results for Q4 and FY 2024 released: Solid end to the year resulting in full-year results in line with latest outlook

The Group continued to grow revenue organically and deliver profit margin in line with the updated outlook for the year.

Please refer to nnit.com - Investors for the full company announcement regarding the financial results for Q4/FY 2024.

CEO Pär Fors comments:

“2024 was an eventful year where we reached several strategic milestones in becoming an industry focused IT consultancy company. Despite macroeconomic uncertainty and a moderate market slowdown in Life Sciences towards the second half of the year, we continued to grow our business organically through existing and new customers. Furthermore, we continued to strengthen our position in the Public sector in Denmark, where we won important strategic contracts. Even though we delivered on our latest financial outlook, we have higher financial ambitions as we look to the future."

Key highlights

• Financial performance in 2024 was affected by challenges in some regions, especially in the third quarter, but we ultimately achieved growth that surpassed the market overall meaning we are expanding our market share
• On regional level the Danish business continued to deliver growth and ending in line with expectations in terms of profits
• The US business is back on their previous stable margin level in Q4, after a tough start of 2024
• Region Europe was affected by the market slowdown in the Life Science industry with project postponements but ended up with a good YoY growth where we keep a continued focus on utilization going forward
• Region Asia saw a stabilized business with improved figures and we continue to work on profitability and utilization
• The order entry was good including several key wins and a record-high customer satisfaction with 4,5% (out of 5%)
  

Financial overview – selected Key Figures 2024

• Revenue grew by 7.1% (organic growth of 6.0%) to DKK 1,851 million.
• NNIT delivered operating result before special items of DKK 117 million in line with the DKK 116 million in 2023 and resulting in a slightly lower operating profit margin before special items of 6.3% for the year which is 0.4% down as a result of lower utilization.
• Special items amounted to DKK 69 million against DKK 69 million in 2023 and is mainly related to earn-out payments and restructuring cost.

2025 Outlook

• During 2025, NNIT expects organic growth to gradually improve alongside profitability
• The Group expects to generate organic revenue growth of 7-10% through expansion of existing engagements, and partly from the onboarding of new customers
• The operating profit margin before special items is expected to increase to 7-9% driven by several factors such as optimization of utilization and billability, recovery of the data migration business, full-year impact of the initiatives carried out during 2024 and continuously exploring further cost optimization opportunities
• In 2025, special items are expected to consist of earn-out payments of around DKK 20m with 2025 being the last year of such payments. Restructuring costs will also be a part of special items in 2025, however, the amount is expected to be significantly below the level of 2024

The outlook is based on assumptions where the macroeconomic environment and geopolitical uncertainty is expected to remain at the same level as in 2024. Exchange rates are expected to remain stable.

Full company announcement is available at https://www.nnit.com/investors-media/investors/