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The NNIT Group renews infrastructure management agreement with Novo Nordisk and adjusts the company’s financial outlook
The NNIT Group, a leading provider of IT services and consultancy has entered into an agreement with Novo Nordisk to renew the existing infrastructure agreement which was to expire ultimo 2022.
The renewed agreement secures the substantial business with Novo Nordisk for another five years and will cover the operations of Novo Nordisk’s global IT infrastructure, including new services within digital workplace, connectivity & network- and IT security services.
Ricco Larsen, Senior Vice President, Life Sciences at NNIT says about the agreement: “We are pleased to continuously be able to meet Novo Nordisk’s high expectations and extend the agreement”. He continues: “Our collaboration is continuously maturing and next generation infrastructure services are added to the portfolio of infrastructure services we provide today. Novo Nordisk remains NNIT’s largest customer and we are proud to be their strategic partner on IT services.”
The contract takes effect from July 1, 2021 and represents a value of a mid triple-digit DKK million amount. Compared to the previous contract, the new contract will reduce NNIT’s historic yearly revenue and profitability within these explicit service areas from the Novo Nordisk Group. The new contract with Novo Nordisk sits within NNIT’s classic solutions business (Infrastructure Operations). This is an area that is facing general margin pressure.
Hence, NNIT is adjusting the previous guidance on operating profit margin. As per the company announcement 01/2021, the previous guidance for 2021 was a revenue growth of 1% to 4% excluding potential new acquisitions and an operating profit margin before special items of 6-7%. The new revised guidance is an unchanged revenue growth of 1% to 4% excluding potential new acquisitions and an operating profit margin before special items of around 5%.
The updated outlook for 2021 is:
• Revenue growth of 1-4 %
• Operating profit margin before special items of around 5%
• Investment level of 5-7% of total revenue excluding acquisitions
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