NNIT announced the transformative divestment of the Group’s infrastructure business, initiated the carve-out process and continued the efforts to consolidate global delivery capabilities in Q2 2022, which was marked by slower-than-expected sales performance. The temporary suspension of NNIT’s full-year outlook is maintained.
Financial highlights for the second quarter 2022
- Group revenue increased 1.8% (-6.8% organic) to DKK 723 million driven by acquisitions and moderate growth in Life Sciences Solutions outweighed by slow sales overall and lower revenue from the Global Infrastructure Agreement with Novo Nordisk.
- The operating profit before special items decreased to DKK -11 million from DKK 36 million impacted by the renegotiated Novo Nordisk contract and temporarily lower capacity utilization. The operating profit margin declined to -1.5% before special items from 5.1% in Q2 2021.
- Special items amounted to DKK 36 million and related mainly to restructuring costs, including costs related to the divestment of infrastructure operations.
- The Group’s infrastructure operations remain classified as continuing operations due the current state of the business and the ongoing carve-out work. Besides that, to increase transparency certain cost components from Group Companies have been reclassified to Sales and Administration costs from Production costs.
Business highlights
- On 22 June, NNIT entered into an agreement to divest its Hybrid Cloud Solutions business unit as well as selected parts of its Cloud & Digital Solutions business unit, enabling the NNIT Group to center investments, competencies and sales force around the two core business areas, Life Sciences Solutions and Cloud & Digital Solutions.
- NNIT won a major six-year contract for delivery of administrative IT systems and services to Danmarks Nationalbank with an estimated total contract value of DKK 1 billion and secured other significant contracts and renewals across business units in the quarter.
- The order backlog for 2022 stood at DKK 2,572 million at the end of June, corresponding to a decrease of 2.7% compared to the same time last year and an increase of 28% from the beginning of the year.
Outlook
- The temporary suspension of NNIT’s 2022 outlook is maintained.
Pär Fors, CEO of NNIT, comments: “We took important steps in our strategy execution in the second quarter as we launched the transformative divestment of our infrastructure business to establish NNIT as a highly specialized IT services provider focusing exclusively on our core areas within IT services to the Life Sciences market and Cloud & Digital Solutions. While sales remained slower than expected in the quarter, we expect continued performance improvements and improved capacity utilization in the coming period.“
Conference call
On August 12, 2022 at 9:30 CET, NNIT hosts a teleconference, which can be accessed here or at www.nnit.com under ‘Investors – Events & Presentations’.
Contacts for further information
Pernille Fabricius, EVP & CFO
Tel: +45 3077 9500
pnfa@nnit.com
Tina Joanne Hindsbo, Media Relations Manager
Tel: +45 3077 9578
tnjh@nnit.com
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, SL Controls, and prime4services. Read more at www.nnit.com.