NNIT Group faced challenges in Q3 with negative organic growth and lower profit margins

From GlobeNewswire: 2024-11-05 12:00:00

In Q3 2024, NNIT Group’s financial performance was unsatisfactory with negative organic growth of 1.6% and total revenue growth of 1.7%. The group operating profit margin was 3.9%, impacted by lower performance. Full-year outlook adjusted with an expected organic growth of 6-7% and group operating profit margin of 6-7%.

The third quarter saw a decrease in organic growth and group operating profit margin for NNIT Group due to postponed projects in the Life Science market. Recovery in data migration business was slower than anticipated, impacting Regions US and Europe. Actions were taken to align internal capacity with demand for improved performance.

Despite a challenging Q3, NNIT Group expects a pick-up in growth and profitability in Q4. This is driven by a high backlog coverage, profitability levers initiated in previous quarters, improved employee utilization, and capacity adjustments to meet market demand. A positive outlook for the upcoming quarter.

Selected key figures for NNIT Group in Q3 2024 include revenue of DKK 444.7 million, a 1.7% decrease in revenue growth, and a 3.9% group operating profit margin. Adjusted full-year outlook includes an organic growth of 6-7% and a group operating profit margin of 6-7%. Conference call scheduled for November 6, 2024, at 9:30 AM CET. Contact Investor Relations for more information. NNIT is a leading IT solutions provider for life sciences internationally and the public and private sectors in Denmark, focusing on high complexity industries with a business-first approach. Group includes NNIT A/S, SCALES, Excellis Health Solutions, and SL Controls, employing over 1,700 people globally. Visit www.nnit.com for more details.



Read more at GlobeNewswire:: A CHALLENGING THIRD QUARTER. NECESSARY ACTIONS