NNIT A/S Reports 11% Organic Growth in Q2 2024
Correction on Financial Metrics
The metrics for “Earnings per share” and “Diluted earnings per share” for the first half of 2024 were previously misreported in the interim financial report. As of June 30, 2024, the correct figures stand at DKK 1.41 for both metrics. An updated version of the interim report is now available.
Q2 2024 Key Highlights
The second quarter of 2024 marked an impressive organic growth of 11.0% for NNIT A/S, indicating successful market share capture, particularly in Denmark and other parts of Europe. This growth was accompanied by a diverse range of performance across various regions, although the US region faced challenges, especially in the data migration sector.
Financial Performance Enhancements
Excluding special items, the group's operating profit margin reached 6.7%, reflecting a notable 0.8%-point improvement from the previous year. This upturn in profitability can be attributed to effective cost management and benefits gained from an expanding top line, particularly in Region Asia earlier this year.
Strategic Moves and Business Developments
NNIT A/S has made significant strides on its transformative journey, including the implementation of new global ERP and HR systems. The completion of the IT infrastructure separation and the relocation of offices in various regions mark important milestones. The company confirms its full-year outlook, predicting around 10% organic growth and an operating profit margin of 8% to 9% excluding special items.
Market Position and Growth Strategy
Despite macroeconomic challenges that affected operations, particularly in Europe and China, NNIT A/S managed to capture additional market share. This was achieved by deepening engagements with existing customers while attracting new ones, aided by strategic timing that included the Easter holiday.
Approaching the Year-End
Looking ahead, NNIT A/S anticipates that revenue generation will intensify towards the end of the fiscal year, with profitability expected to gradually increase each quarter. The firm has maintained its backlog and pipeline, ensuring that the prospects for the year remain strong.
CEO Remarks on Business Direction
Pär Fors, the President and CEO, remarked on the company's strategic shift towards focusing solely on IT consulting services. He noted that recent successes in early Q3 confirm the effectiveness of this approach. Fors expressed satisfaction with the continued growth and improved profitability, reiterating the importance of the ongoing transformational initiatives.
Financial Overview: Key Figures
Here's a snapshot of key financial figures for NNIT A/S as of Q2 2024:
- Revenue: DKK 474.0 million (Q2 2024) vs. DKK 424.1 million (Q2 2023)
- Revenue Growth (%): 11.8% (Q2 2024)
- Operating Profit (excl. special items): DKK 32.0 million
- Operating Profit Margin (%): 6.7%
- Group Operating Profit (incl. special items): DKK 16.8 million
Conference Call and Investor Relations
The management team will host a conference call as part of the ongoing engagement with shareholders and analysts to discuss the financial results further. Relevant dial-in information is available, ensuring all interested parties can actively participate in the discussion.
Contact Information
For any inquiries regarding the financial performance or strategic direction of the company, reach out to the Investor Relations team:
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 recognized as a premier provider of IT solutions to the life sciences industry and serves both public and private sectors. The company specializes in high-complexity environments where regulations must be adhered to stringently. NNIT focuses on crafting sustainable digital solutions and operates several subsidiaries employing over 1,700 professionals globally.
Frequently Asked Questions
What is the main highlight of NNIT's Q2 2024 report?
The main highlight is an 11% organic growth in revenue, reflecting successful market strategies and customer engagements.
What financial figures were corrected in the interim report?
The corrected earnings per share for H1 2024 is DKK 1.41 for both metrics, which were previously misstated.
How has NNIT's profitability changed?
NNIT reported an operating profit margin of 6.7%, an improvement from the previous year's 5.9% margin excluding special items.
What strategic initiatives has NNIT undertaken?
NNIT has implemented new global ERP and HR systems and is making strides towards IT separation and office relocations.
Who can be contacted for more information about NNIT?
Contact Carsten Ringius, EVP & CFO, at +45 3077 8888 for investor relations inquiries.
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