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Company announcement 09/2021: Financial report for the first nine months of 2021
Revenue increase of 6.1% and an operating profit margin before special items of 3.0% related to Q3 2021
Performance highlights for Q3 2021
Revenue increased to DKK 698m, up 6.1% (-1.5% organic) from Q3 2020, driven by:
Life Sciences (excluding Novo Nordisk Group) grew to DKK 246m, up 36% (13% organic). The increase was related to the continued significant growth of the Life Sciences International business, where revenues increased by 53% (20% organic) to DKK 187m, while revenue from Life Sciences Denmark was on par with Q3 2020 at DKK 59m.
Novo Nordisk Group revenue declined 12.9% to DKK 142m mainly explained by the Global infrastructure management agreement effective from July 1, 2021.
Private & Public business revenue declined by 1.3% to DKK 310m, reductions mainly driven by lower activity level in the Infrastructure Operations business area.
Winning Solutions constitute 54% of total revenue, up from 46% in Q3 2020.
Operating profit margin before special items was 3.0%, down from 3.8% in Q3 2020.
To establish visibility and accelerate cost reductions, a process of separating the NNIT Infrastructure activities into a dedicated business unit is initiated.
Special items amount to DKK 23m. These relate to the continuous efforts in relation to efficiency improvements and restructuring.
Net result is a loss of DKK 10m, compared to a profit of DKK 9m in Q3 2020.
Order backlog for 2021 at the beginning of Q4 2021 amounted to DKK 2,790m, an increase of 3.7% compared to the same time last year.
Outlook for 2021:
Guidance as of November 3, 2021:
Revenue growth of 1-4%
Operating profit margin before special items of around 5%
Investment level of 5-7% of total revenue excluding acquisitions
Pär Fors, CEO of NNIT, comments: "Q3 performed below previous quarters, which was in line with expectations and previous years. International Life Sciences continued at high growth rates and is now the largest segment in the Group and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the infrastructure business and focus is now on separation of the infrastructure operations into a dedicated business unit to enhance efficiencies and reduce costs. We are confident in our strategy and maintain our guidance for the year".
Conference call details
NNIT will host a teleconference on November 3, 2021 at 9:30 CET to present the financial report for the first nine months of 2021. Please visit the NNIT website 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:
Participant telephone numbers:
+44 333 300 9035
+46 856 642 692
Financial calendar 2022
January 25, 2022
Deadline for NNIT shareholders to submit resolutions to be considered by the Annual General Meeting
January 28, 2022
Annual report 2021
March 10, 2022
Annual General Meeting
May 6, 2022
Interim report for the first three months of 2022
August 12, 2022
Interim report for the first six months of 2022
November 2, 2022
Interim report for the first nine months of 2022
This announcement contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.
Please also refer to the overview of risk factors in the ‘risk management’ section on page 41-43 of the Annual Report 2020.
Contacts for further information
Tina Joanne Hindsbo
EVP & CFO
Media Relations Manager
Tel: +45 3077 9500
Tel: +45 3077 9578
The NNIT Group provides a wide range of IT and consulting services internationally.
In Denmark, where the Group HQ is based, we are one of the leading IT companies, servicing both private and public sector customers across all industries. In the rest of Europe, Asia and USA, we are solely focused on companies within life sciences.
Supporting the entire supply chain, we help optimize internal company processes, production, sales and customer experiences:
We advise, build, operate and support, enabling digital transformation and customers to reap the full potential of their organizations. Our role is to foster innovation and make the mark our customers and we aspire to.
The NNIT Group consists of group company NNIT A/S and subsidiaries Valiance, SCALES Excellis Health Solutions and SL Controls. Together, these companies employ over 3,000 people in Europe, Asia and USA. Read more at www.nnit.com.