Interim financial report for Q3 2020 just released

Per Kogut, CEO at NNIT comments:

“NNIT’s Q3 was driven by double digit profitable growth in the international life sciences segment. The Novo Nordisk Group impacted the growth negatively as expected. In addition, the Private & Public business contracted in Q3. The Q3 performance evidences the importance for NNIT of having different main business segments to execute on during challenging times.”

• Group revenue decreased by 14% to DKK 658m in Q3 2020 compared to Q3 2019.
• Revenue from life sciences international continued the growth path with revenue increasing by 29% to 122m while revenue from life sciences Denmark increased by 3.2% to 59m.
• In Q3 2020, for the first time, other life science customers generated more revenue than the Novo Nordisk group.

Financial highlights

Performance highlights

• Revenue from the Novo Nordisk Group continued the expected decline (-27%). Consequently, the share of NNIT’s revenue from clients outside the Novo Nordisk Group increased to 75% in Q3 2020 from 71% in Q3 2019
• The COVID-19 situation continued to impact performance in Q3 2020 due to the ongoing uncertainty leading to delays of tenders and projects.
• Operating profit margin before special items were at 3.8% in Q3 2020 compared to 9.0% in Q3 2019.
• Net profit was at DKK 9m in Q3 2020 compared to DKK 50m in Q3 2019 due to the lower operating profit and negative impact from net financials.

Outlook for 2020

COVID-19 continues to impact our business negatively by delaying project work and tenders, and we now expect that our performance for 2020 will be at the bottom of previously guided intervals.

• Revenue growth of around - 8% in constant currencies.
• Operating profit margin before special items of around 6% in constant currencies.
• Level of investment (CAPEX) is 5-7% of total revenue (unchanged).

Read the full Q3 company announcement here