Financials

Q1 2019

NNIT increased its revenue by 7.4% driven by growth in the international life sciences and finance customer groups of 73% (organic 27%) and 28%, respectively, while the enterprise customer group increased by 5.9%. The Novo Nordisk Group increased by 1.1% compared to Q1 2018 which was at a low level. This was partly countered by a decline in revenue from the public customer group of 10% and life sciences Denmark of 1.2%. Revenue growth was 11% (7.1% organic) excluding business from Novo Nordisk Group in Q1 2019. The share of revenue from clients outside the Novo Nordisk Group increased from 63% in Q1 2018 to 65% in Q1 2019. Gross profit decreased in Q1 2019 primarily due to a significant decline in margins on service level agreements and projects for the Novo Nordisk Group as well as a change in revenue mix with a lower Novo Nordisk Group share. This lead to an operating profit decrease of 25% and an operating profit margin of 6.1% in reported currencies compared to 8.7% in Q1 2018.

The order backlog for 2019 at the beginning of Q1 2019 increased by DKK 29.6 million to DKK 2,517 million, or by 1.2%, compared to the order backlog one year earlier. The backlog development is impacted by a decline in multiyear outsourcing agreements, while business coming from projects with low backlog visibility increases. The revenue growth of 6.5% in constant currencies in Q1 2019 was in line with expectations and guidance for revenue growth of 3-6% in constant currencies is maintained. Following the low operating profit margin of 6.3% in constant currencies in Q1 2019, an expected further decline in revenue and operating profit margin from the Novo Nordisk Group the guidance for operating profit margin in constant currencies is reduced from 10-10.5% to 8-9% (as also announcement in company announcement 7/2019 May 9, 2019. Investments / revenue is expected to be 5-7% of revenue.

   

As communicated last week our operating profit margin for the first three months of 2019 is very disappointing. Based on our ongoing cost initiatives as well as the backlog we expect an increased operating profit margin in coming quarters, compared to the first quarter of the year. On a positive note, I am satisfied with the high revenue growth in international life sciences.” 

Per Kogut, Chief Executive Officer (CEO)

Investor relations contact

Klaus Hosbond Skovrup
Head of Investor Relations

Email
+45 3079 5355

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