NNIT A/S: 11/2019 Financial report for the first nine months of 2019
Revenue increase of 3.3% and an operating profit margin of 7.0% in 9M 2019 before restructuring costs
Performance highlights for the third quarter of 2019 and guidance:
- Revenue increased by 4.1% in Q3 2019 compared to Q3 2018 driven by growth from international life sciences (by 95%), finance (by 20%), Danish life sciences (by 12%) and enterprise (by 6.7%) customers, while the Novo Nordisk Group and public customers declined by 16% and 5.2%, respectively
- Revenue increased 16% (8.5% organic) excluding business from Novo Nordisk Group in Q3 2019. The share of NNIT’s revenue from customers outside the Novo Nordisk Group increased to 71% in Q3 2019 from 64% in Q3 2018
- Gross profit increased by 4.2% in Q3 2019 in line with the revenue growth leading to an operating profit increase before restructuring costs of 3.9% and an operating profit margin of 9.0% in line with Q3 2018. The better balance between revenue and cost development shows that the business and cost restructuring plan is progressing with the first steps taken in Denmark in September and thereby reversing the negative trend from Q1 and Q2 2019
- Net profit was DKK 50m in Q3 2019 compared to DKK 48m in Q3 2018
- Order backlog for 2019 at the beginning of Q4 2019 was DKK 2,923m, an increase of 2.7% compared to the same time last year negatively impacted by a decline of 13% from the Novo Nordisk Group
- Q4 2019 revenue and operating profit margin are expected to be lower than Q4 last year which was particular strong
- Outlook for 2019 is maintained:
- Low single-digit revenue growth
- Operating profit margin of 8-9% excluding restructuring costs in constant currencies
- Level of investments (CAPEX) is 5-7% of total revenue
Per Kogut, CEO at NNIT comments: “We face challenging market conditions, however, we see strong revenue growth within our international life sciences and finance segments. The business and cost restructuring plan is progressing and contributes to a margin improvement in Q3 compared to the first two quarters of 2019.”
Conference call details
NNIT will host a teleconference October 24, 2019 at 10:30 CET about the financial report for the first nine months of 2019. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under ‘Investors – Events & presentations’. Presentation material will be available on the website approximately one hour prior to the start of the presentation.
Conference call details
https://nnit.eventcdn.net/2019q3/
Participant telephone numbers:
Denmark: +45 3544 5583
United Kingdom: +44 20 3194 0544
Sweden: +46 8 5664 2661
United States: +1 855 269 2604
Financial Calendar 2020
January 23, 2020 Deadline for NNIT shareholders to submit resolutions to be considered by the Annual General Meeting
January 29, 2020 Full year report for 2019
March 5, 2020 Annual General Meeting
May 6, 2020 Interim report for the first three months of 2020
August 13, 2020 Interim report for the first six months of 2020
October 29, 2020 Interim report for the first nine months of 2020
Contacts for further information
Investor relations:
Klaus Hosbond Skovrup
Head of Investor Relations
Tel: +45 3079 5355
[email protected]
Media relations:
Helga Heyn
NNIT Communications
Tel: +45 3077 8141
[email protected]
About NNIT
NNIT A/S is one of Denmark’s leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of September 30, 2019, NNIT A/S had 3,221 employees. NNIT has approximately 400 clients of which around 170 are located outside Denmark. Some 25% are international life sciences clients (September 2019). For more information please visit www.nnit.com.
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