Q3 2017

Revenue in reported currencies increased by 0.2% in Q3 2017 (0.5% in constant currencies) being impacted negatively by the one-off revenue reversal of DKK 33m corresponding to 4.9pp and positively impacted by 4.6pp from SCALES. Adjusting for these impacts the underlying organic growth was 0.4% in reported currencies due to a decline in revenue from the Novo Nordisk Group of 2.3% and an increase in revenue from other customers of 2.6%. Operating profit margin in reported currencies was 4.5% in Q3 2017 (4.0% in constant currencies) and 7.9% in 9M 2017 (7.6% in constant currencies) negatively impacted by the one-off revenue reversal of DKK 33m compared to 10.3% in Q3 2016 and 9.8% in 9M 2016. Adjusting for the revenue reversal the operating profit margin was 9.0% in Q3 2017 and 9.3% in 9M 2017.

The revenue guidance for 2017 is 4-6% in constant currencies with expected organic growth of 1-3%. Due to lower expected revenue from the Novo Nordisk Group and the one-off revenue reversal of DKK 33m regarding a customer in the public customer group (see company announcement 8/2017), the guidance for 2017 organic growth is below the long-term target for revenue growth of at least 5%. As a consequence of the expected lower level in revenue from higher margin projects in the Novo Nordisk Group, the revenue reversal and price reductions on existing customer contracts, the operating profit margin in constant currencies is under increasing pressure and is expected to be around 9%. Excluding the revenue reversal operating profit is expected to be around 10.0% in line with guidance in the Q2 2017 report.

“Generating 2% organic growth and an operating profit margin of 7.9% in the first nine months of the year due to a DKK 33m revenue reversal in a settlement of a three-year old arbitration with a client is not satisfactory. The settlement has a one-off impact and we can now continue our strategic journey. It is thus comforting to see several recent contract wins and promising growth within the international life sciences customer group, however we have hard work in front of us.”

Per Kogut, Chief Executive Officer (CEO)

Investor relations contact

Jesper Wagener
Head of Investor Relations

+45 3075 5392

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