In Q1 2022, NNIT saw a decline in revenue and earnings mainly due to a temporary decline in capacity utilisation. Positively, several significant contracts were signed, and strategic initiatives progressed as planned. Outlook for the full year is maintained.
CEO Pär Fors comments: ‘We continued to make headway with the strategic initiatives to build a stronger NNIT by introducing new business units, the acquisition of prime4services and signing key contracts with new and existing customers in Q1 2022. A temporary decline in capacity utilisation negatively impacted our financial results, and we remain confident that we will reach our targets for the full year.’
- Group revenue declined by 4.1% (-7.5% organic) to DKK 701 million, following a lower contribution from the Global Infrastructure Agreement with Novo Nordisk. The decrease was partly outweighed by growth in Life Sciences Solutions.
- The operating result before special items decreased to DKK -9 million from DKK 48 million due to the renegotiation of the Novo Nordisk contract and a temporary decline in capacity utilisation after the cancellation of a large International Life Sciences Solutions project and customer postponement of a large ERP implementation. The operating profit margin declined to -1.3% compared to 6.6% in Q1 2021.
- NNIT’s external reporting structure has been revised to reflect the three business units – Life Sciences Solutions, Cloud & Digital Solutions and Hybrid Cloud Solutions – ensuring alignment with the Group’s new organisational structure as of 1st January 2022.
Selected business highlights
- NNIT acquired prime4services, a leading European Manufacturing Execution System implementation consultancy, further strengthening the Group’s capabilities within Life Sciences Production IT.
- Significant new contracts and contract renewals were secured across all business units, including a six-year contract with ATP and a five-year contract with Banedanmark to continue signing with e-nettet and the Nordic Regional Security Coordinator in Q4 2021.
- NNIT maintains the 2022 outlook for revenue growth of 2–5% with an operating profit margin before special items of around 5%. The structural transformation of the Group is still expected to lead to special items up to the same level as in 2021.
Outlook for 2022
NNIT maintains the 2022 outlook for revenue growth of 2–5% with an operating profit margin before special items of around 5%. The structural transformation of the Group is still expected to lead to special items up to the same level as in 2021.