Financial report for Q1 2018

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
Tel: +45 3079 5355
ksko@nnit.com

Media relations:
Helga Heyn
NNIT Communications
Tel: +45 3077 8141
hhey@nnit.com

Company announcement Q1 2018 EN


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Source: NNIT A/S via Globenewswire