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Interim Financial Report for Q4 2020 – The Annual Report Just Released

Business 30 January 2021 By

Per Kogut, CEO at NNIT comments: ‘NNIT concluded 2020 in line with financial guidance. Q4 contributed an organic double-digit, profitable growth within the Life Sciences International business. The acquisition of Excellis positively added further growth. As expected, the Novo Nordisk Group impacted growth and margin development negatively, and the P&P business contracted partly due to the COVID-19 situation. We have focused on the execution of the set strategy in the challenging times of 2020 and are looking forward to a hopefully more normalised 2021.’

  • Group revenue decreased by 6.5% to DKK 749m in comparison to Q4 2019. Positively, revenue from Life Sciences International increased by 37% (24% organic) to DKK 136m while revenue from Life Sciences Denmark increased by 6.3% to DKK 67m.
  • NNIT acquired US-based Excellis Health Solutions 9th November 2020, thereby strengthening the Group’s customer portfolio across the global pharma and biotech industries as well as enhancing its ability to provide end-to-end life sciences IT services to all customers.
  • NNIT secured significant wins in Q4.
  • End-to-end IT services including application maintenance and infrastructure operations for Orifarm.
  • Extension of Veeva Vault Safety implementation related to COVID-19 vaccine development and production for AstraZeneca.
  • Re-win of Microsoft Dynamics AX support agreement for Pandora.
  • Veeva Regulatory Information Management (RIM) for a global top-10 life sciences company.

Performance highlights

  • Revenue from the Novo Nordisk Group declined as expected by 12% compared to Q4 2019. The share of NNIT’s revenue from customers outside the Novo Nordisk Group was 72% compared to 70% in Q4 2019
  • The COVID-19 situation continued to impact performance in Q4 2020 with uncertainty leading to delays of tenders and projects.
  • Operating profit margin before special items was at 7.3% compared to 10% in Q4 2019.
  • Net profitwasatDKK 18m compared to DKK 58m in Q4 2019 due to a lower operating profit, increase in special items and adjustment of an earn-out agreement.

Outlook for 2021

In 2021, growth is expected to return driven by Life Sciences International and traction in Winning Solutions. The Private & Public segment is expected to be challenged by delays in project work and tenders partly due to the COVID-19 situation. Therefore, we see significant guidance sensitivities despite having secured a solid backlog. The guidance for 2021 is specified as follows in reported currencies:

  • Revenue growth of 1–4%.
  • Operating profit margin before special items of 6–7%.
  • Level of investment (CAPEX) is 5–7%.

A mark in business and society; bringing digital transformation to life

The NNIT Group provides a wide range of IT and consulting services to the world. Supporting the entire supply chain, we help optimise internal company processes, production and sales as well as delivery to customers. They are the experts in supporting the world’s most regulated industries subject to strict governance of processes, quality and data management and documentation and in guiding on the digital journey.

The Group consists of group company NNIT A/S and the subsidiaries Valiance, SCALES and Excellis Health Solutions. Together, these companies employ over 3,000 people, primarily in Europe, Asia and the US. In Denmark, where the Group HQ is based, one of the leading IT consultancies, servicing both private and public sector customers across all industries. In the rest of Europe, US and Asia, they are solely focused on companies within life sciences.