NNIT A/S: 11/2020 Financial report for the first nine months of 2020
Revenue decrease of 7.8% to DKK 2.081m and an operating profit margin before special items of 5.3% in the first nine months of 2020
Performance highlights for the third quarter of 2020:
- Group revenue decreased by 14% to DKK 658m in Q3 2020 compared to Q3 2019. Positivly, revenue from life sciences international continued the growth path with revenue increasing by 29% to 122m while revenue from life sciences Denmark increased by 3.2% to 59m. In Q3 2020 other life science generated more revenue than the Novo Nordisk group
- Revenue from the Novo Nordisk Group continued the expected decline (-27%). Consequently, the share of NNIT’s revenue from clients outside the Novo Nordisk Group increased to 75% in Q3 2020 from 71% in Q3 2019
- The COVID-19 situation continued to impact performance in Q3 2020 due to the ongoing uncertainty leading to delays of tenders and projects
- Operating profit margin before special items at 3.8% in Q3 2020 compared to 9.0% in Q3 2019
- Net profit at DKK 9m in Q3 2020 compared to DKK 50m in Q3 2019 due to the lower operating profit and negative impact from net financials
- Free cashflow at a conversion rate of 78%
- Order backlog for 2020 at the beginning of Q4 2020 at DKK 2,691m, a decrease of 7.9% compared to the same time last year impacted by a large decline of 27% from the Novo Nordisk Group
- Outlook for 2020:
COVID-19 continues to impact our business negatively by delaying project work and tenders and we now expect that our performance for 2020 will be at the bottom of previously guided intervals. Hence, our guidance for 2020 is specified as follows provided no further deteriation in relation to the COVID-19 situation:
- Revenue growth of around - 8% in constant currencies
- Operating profit margin before special items of around 6% in constant currencies
- Level of investment (CAPEX) is 5-7% of total revenue (unchanged)
Per Kogut, CEO at NNIT comments: “NNIT’s Q3 was driven by double digit profitable growth in the international life sciences segment. The Novo Nordisk Group impacted the growth negatively as expected. In addition, the private & public business contracted in Q3. The Q3 performance evidences the importance for NNIT of having different main business segments to execute on during challenging times.”
Conference call details
NNIT will host a teleconference October 29, 2020 at 10:30 CET about the financial report for the first nine months of 2020. Please visit the NNIT webpage at 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
https://nnit.eventcdn.net/2020q3/
Participant telephone numbers:
Denmark: +45 45 7815 0109
United Kingdom: +44 333 300 9032
Sweden: +46 850 558 356
United States: +1 646 722 4904
Financial Calendar 2021
January 26, 2021 Deadline for NNIT shareholders to submit resolutions to be considered by the Annual General Meeting
January 29, 2021 Annual report 2020
March 10, 2021 Annual General Meeting
May 7, 2021 Interim report for the first three months of 2021
August 12, 2021 Interim report for the first six months of 2021
November 3, 2021 Interim report for the first nine months of 2021
Forward-looking statements
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 29-31 in the Annual Report 2019.
Contacts for further information
Investor relations: Media relations:
Jens Binger Tina Joanne Hindsbo
Head of Investor Relations NNIT Communications
Tel: +45 3079 9222 Tel: +45 3077 9578
jblb@nnit.com tnjh@nnit.com
About NNIT
NNIT A/S is one of Denmark’s leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of June 30, 2020, NNIT A/S had 3,078 employees. NNIT has approximately 400 clients of which around 150 are located outside Denmark. Some 25% are international life sciences clients. For more information please visit www.nnit.com.
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