Financial results for Q3 2022 just released: Execution on the carveout of the Group’s infrastructure business continues

NNIT continued to execute on the carveout of the Group’s infrastructure business and sustained the efforts to consolidate global delivery capabilities in Q3 2022 while seeing improved earnings in line with expectations.

Please refer to https://investor.nnit.com for the full company announcement re the financial results for Q2 2022.

CEO Pär Fors comments:

“We saw a continuation of the pickup in revenue and earnings in the third quarter and maintained focus on streamlining our outsourcing organization and completing the carveout of our infrastructure business to establish NNIT as a highly specialized IT services provider with two strongly positioned business units. The process is progressing based on constructive and thorough dialogue with customers and stakeholders.”

• Group revenue increased 5.7% (-1.3% organic) to DKK 738 million, primarily due to acquisitions and moderate growth in the Life Sciences Solutions and Cloud & Digital Solutions business units.
• The operating profit before special items increased to DKK 30 million from DKK 21 million in Q3 2021 driven by an improved utilization rate following capacity adjustments. As a result, the operating profit margin increased to 4.1% before special items from 3.0% in Q3 2021, and from -1.5% in Q2 2022.
• Special items amounted to DKK 50 million mainly comprised of restructuring costs, including costs related to the divestment of the Group’s infrastructure operations.
• The Group’s infrastructure operations remain classified as continuing operations due to the current state of the business and the ongoing carve-out work.

Group Financial Review

Business highlights

• NNIT continued to execute on the carveout of the Group’s infrastructure business as well as selected parts of its Cloud & Digital Solutions business unit.
• Group company SCALES won a multiyear contract with Lantmännen Unibake on a global ERP rollout worth a double-digit DKK million amount.
• The order backlog for 2022 stood at DKK 2,759 million at the end of September, corresponding to a decrease of 1.1% compared to the same time last year and an increase of 37% from the beginning of the year.
• NNIT committed to the Science Based Targets initiative (SBTi) and intends to set both short-term and long-term targets for reduction of CO2 emissions.
• On 25 August, NNIT announced that Carsten Ringius will join the Group as CFO from December 1, 2022, as CFO Pernille Fabricius assumes a new role as Executive Vice President for Strategy, Transformation and M&A.

Outlook for 2022

The temporary suspension of NNIT’s 2022 outlook is maintained.