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Financial report for Q1 2018

Press Release   •   May 15, 2018 15:25 GMT

NNIT delivers an operating profit margin of 8.7% while revenue declines by 2.3% despite a revenue increase of 12% from non-Novo Nordisk customers

Performance highlights for Q1 2018

  • Revenue from non-Novo Nordisk customers increased by 12% supported by strong growth from both enterprise and international life sciences customers of more than 20%. However, due to decline in revenue from the Novo Nordisk Group of 20% and the timing of Easter total revenue declined by 2.3% in reported currencies
  • Adjusted for the timing of Easter revenue development was almost flat
  • The share of revenue from non-Novo Nordisk customers increased from 55 % in Q1 2017 to 63% in Q1 2018
  • Operating profit margin was 8.7% in reported currencies compared to 10.5% in 2017
  • Adjusting for the timing of Easter the operating profit margin was 10.5%
  • Net profit of DKK 46m in Q1 2018 was a decrease of 18% compared to Q1 2017. Adjusted for the timing of Easter net profit increased by 1.4% compared to last year
  • Free cash flow for Q1 2018 was DKK 143m compared to DKK 163m in Q1 2017
  • Order backlog for 2018 at the beginning of Q2 2018 was DKK 2,487m, an increase of 2.8% compared to the same time last year. The backlog for the following two years increased by 20%

Outlook for 2018 is:

  • Revenue growth of 3-6% in constant currencies (previously 4-7%)
  • Expected operating profit margin of 10-10.5% in constant currencies
  • The expected level of investments in 2018 is 6-8% of total revenue

Based on the strong cash flow NNIT will pay out an interim dividend in August 2018 of DKK 49.1m in cash equal to DKK 2 per share of a nominal value of DKK 10.

Per Kogut, CEO at NNIT says about the results for the first three months of 2018: "I am encouraged by the continued strong growth in particular the enterprise and international life sciences customer groups. The decline in revenue from the Novo Nordisk Group was larger than expected and we have therefore adjusted our revenue growth guidance for 2018 to 3-6%. Under these circumstances, I am pleased that we have maintained our operating profit margin guidance of 10-10.5%."

Conference call details
NNIT will host a teleconference May 16, 2018 at 10:30 CET about the financial report for Q1 2018. 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/20180516

Participant telephone numbers:

  • Denmark: +45 3544 5583
  • United Kingdom: +44 20 3194 0544
  • Sweden: +46 8 5664 2661
  • United States: +1 855 269 2604

Financial Calendar 2018

  • August 17, 2018 Interim report for the first six months of 2018
  • August 22, 2018 Interim dividend ex dividend date
  • August 23, 2018 Interim dividend record date
  • August 24, 2018 Interim dividend payment date
  • October 25, 2018 Interim report for the first nine months of 2018

Contacts for further information

Investor relations: Klaus Hosbond Skovrup
Head of Investor Relations
+45 3079 5355
ksko@nnit.com

Media Relations: Helga Heyn
NNIT Communications
+45 3077 8141
hhey@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 March 31, 2018 NNIT A/S had 3,101 employees. NNIT has approximately 350 clients of which around 100 are located outside Denmark. Some 20% are international life science clients (January 2018). For more information please visit www.nnit.com.

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