Q1 2024 key highlights
- The first quarter results were as planned on an overall level. Organic revenue growth of 8.0% driven by Region Denmark and Region Europe partly offset by Region US and Region Asia. The performance of our downscaled Region Asia was impacted by continuing headwind and not as expected. Total revenue growth was 12.2% compared with last year.
- The group operating profit excluding special items increased from DKK 20m in Q1 2023 to DKK 23.9m in Q1 2024, equal to a group operating profit margin excl. special items of 5.2%.
- The internal projects leading to further optimization of the business such as implementing a new ERP system, relocation of offices in several locations and completion of the IT separation of the infrastructure business, are progressing according to plan.
- The full-year financial outlook for organic revenue growth of around 10% and group operating profit margin excl. special items of 8-9% is maintained.
During the quarter, NNIT continued to see positive developments in its business performance, which fully supports the strategic direction initiated last year even though the start to the year was impacted by macroeconomic factors leading to more cautious customer behavior in terms of expansion of engagements and winning new business. Although some of this was anticipated, the performance in Region Asia was not as expected and significant actions have been taken to reduce capacity and regain profitability.
Despite a soft start to the year which was also impacted by timing of Easter, the strategic focus of NNIT remains intact. NNIT continues to see business improvements across its regions, and customer relationships remain strong supported by high customer satisfaction score. NNIT is closing in on several important milestones such as the introduction of a new global IT platform, relocation to new offices and integration of group companies during 2024.
As a consequence, supported by the backlog and a promising pipeline, the full-year outlook, is maintained with gradual improvements expected quarter by quarter.
Financial overview – Selected key figures
| NNIT A/S, DKK million | Q1 2024 | Q1 2023 | FY 2023 |
| Revenue | 463.4 | 413 | 1,728 |
| Revenue growth, % | 12.2% | 16.0% | 15.2% |
| Revenue growth, organic % | 8.0% | 11.3% | 10.8% |
| Group operating profit excl. special items | 23.9 | 20 | 116 |
| Group operating profit margin excl. special items, % | 5.2% | 4.8% | 6.7% |
| Special items | 11.3 | -14 | -69 |
| Group operating profit incl. special items | 35.2 | 6 | 47 |
| Group operating profit margin incl. special items, % | 7.6% | 1.4% | 2.7% |
CONFERENCE CALL
May 7, 2024, at 2:00 PM CEST: Webcast link
Dial in information:
DK: +45 7876 8490
SE: +46 8 1241 0952
UK: +44 203 769 6819
US: +1 646-787-0157
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For more information, please contact:
Investor Relations
Carsten Ringius
EVP & CFO
Tel: +45 3077 8888
carr@nnit.com
Media Relations
Tina Joanne Hindsbo
Media Relations Manager
Tel: +45 3077 9578
tnjh@nnit.com
ABOUT NNIT
NNIT is a leading provider of IT solutions to life sciences internationally, and to the public and enterprise sectors in Denmark.
We focus on high complexity industries and thrive in environments where regulatory demands and complexity are high.
We advise on and build sustainable digital solutions that work for the patients, citizens, employees, end users or customers.
We strive to build unmatched excellence in the industries we serve, and we use our domain expertise to represent a business first approach – strongly supported by a selection of partner technologies, but always driven by business needs rather than technology.
NNIT consists of group company NNIT A/S and subsidiaries SCALES, Excellis Health Solutions and SL Controls. Together, these companies employ more than 1,700 people in Europe, Asia and USA. Read more at www.nnit.com
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