NNIT A/S Achieves 11% Organic Growth with Enhanced Profitability
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NNIT A/S Achieves Solid Organic Growth of 11% in Q2 2024
In the second quarter of 2024, NNIT A/S experienced a remarkable organic growth of 11%, reflecting its ability to capture market share, particularly in Denmark and broader Europe. This growth trajectory was broadly evident, apart from a slight downturn in the US region due to a temporary decline in the data migration sector, although signs of gradual recovery are apparent.
Financial Performance Overview
The group operating profit margin, excluding special items, reached 6.7%, marking an increase of 0.8 percentage points compared to the prior year. This positive shift in profitability can be attributed to effective cost base leveraging driven by rising revenues and stringent cost controls, particularly in Region Asia.
Strategic Milestones and Initiatives
NNIT's transformative journey continued in Q2 with significant achievements, including the successful launch of new global ERP and HR systems. The company also progressed in separating its IT infrastructure business and relocating offices in various countries, which underpins its commitment to enhancing operational efficiency.
Full-Year Financial Outlook Confirmation
Looking ahead, NNIT has confirmed its financial outlook for the year, anticipating around 10% organic revenue growth and an operating profit margin excluding special items ranging from 8% to 9%.
Market Dynamics and Customer Engagement
Despite ongoing macroeconomic challenges, particularly in Europe and China, NNIT successfully expanded its customer base. Growth was fueled by leveraging existing relationships while concurrently attracting new clientele. Seasonal factors, such as the timing of Easter, also contributed to the overall growth performance.
Leadership Insights
Pär Fors, President and CEO of NNIT, stated, “We are pleased to see that our strategic direction towards becoming a pure-play IT consulting business is yielding positive results. The significant wins early in Q3 further emphasize that we are moving in the right direction. Overall, our business continues to expand, and profitability is rising as we advance our transformational initiatives started last year.”
Financial Performance – Selected Key Figures
The following key figures highlight NNIT’s financial standing:
- Revenue: DKK 474.0 million (Q2 2024) compared to DKK 424.1 million (Q2 2023)
- Organic Revenue Growth: 11.0% in Q2 2024 against 10.9% in Q2 2023
- Group Operating Profit Excluding Special Items: DKK 32.0 million (Q2 2024)
- Group Operating Profit Margin Excluding Special Items: 6.7%
Conference Call and Contact Information
For investors and stakeholders interested in deeper insights, a conference call is scheduled for a future date, and relevant dial-in numbers have been provided for different regions. Those who require further information can contact NNIT’s Investor Relations team.
Additional Contacts:
Investor Relations: Carsten Ringius, EVP & CFO, Tel: +45 3077 8888
Media Relations: Tina Joanne Hindsbo, Media Relations Manager, Tel: +45 3077 9578
About NNIT
NNIT A/S is a leading provider of IT solutions for the life sciences sector as well as the public and private sectors. The company specializes in industries with high complexity and regulatory demands. It strives to create sustainable digital solutions tailored to the needs of patients, citizens, employees, and other end-users.
With a focus on excellence, NNIT employs over 1,700 professionals across Europe, Asia, and the USA, continuously enhancing its capability to address market challenges and drive customer success.
Frequently Asked Questions
What organic growth did NNIT achieve in Q2 2024?
NNIT achieved an organic growth of 11% in Q2 2024.
How did profitability change compared to last year?
The operating profit margin increased by 0.8 percentage points to 6.7% in Q2 2024.
What strategic steps did NNIT take in Q2 2024?
NNIT implemented new global ERP and HR systems, separated its IT infrastructure business, and relocated offices.
What is NNIT's outlook for the full year?
NNIT anticipates around 10% organic revenue growth and plans to maintain an operating profit margin of 8-9%.
Who should be contacted for investor inquiries at NNIT?
Investor inquiries can be directed to Carsten Ringius, EVP & CFO, at +45 3077 8888.
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