NNIT delivers organic revenue growth of 6.3% and an operating profit margin of 10.6% in 2016.
Performance highlights for 2016:
- Revenue increased by 6.3% to DKK 2,765m in reported currencies and by 6.4% in constant currencies. Revenue increased by 18.8% from customers outside the Novo Nordisk Group while revenue from the Novo Nordisk Group declined by 5.9%
- Operating profit margin was 10.6% in reported currencies and 10.1% in constant currencies compared to 10.3% as reported in 2015
- Operating profit increased by 8.8% to DKK 293m in reported currencies driven by improved results in IT Operation Services
- Net profit increased by 1.5% to DKK 216m as the improvement in operating profit was partly countered by a loss on currency hedges, a negative value adjustment of the Novo Nordisk shares used to hedge NNIT’s long term incentive program before 2015 and an increase in the effective tax rate
- Free cash flow was DKK 188m which is DKK 22m below 2015 due to investments in a new data center
- Order backlog for 2017 at the beginning of Q1 2017 increased by DKK 73m to DKK 2,093m which is a growth of 3.6% compared to the order backlog for 2016 at the beginning of Q1 2016
- Outlook for 2017 in constant currencies:
- Revenue is forecasted to grow 1-5% in constant currencies. The revenue growth outlook is below NNIT’s long-term target of at least 5% due to a decline in the backlog from the Novo Nordisk Group
- Operating profit margin is forecasted to be around 10% in constant currencies
- The expected level of investments in 2017 is 12-14% of total revenue as the majority of investment related to an additional data center will impact 2017
Per Kogut, CEO at NNIT comments: “The 2016 results confirm the robustness of NNIT’s operating model showing a 10.6% profit margin in this highly competitive market. I find it particularly reassuring that we are able to counter a declining revenue from the Novo Nordisk Group by growing our business with other customers by 18.8%. Generating 6.3% growth is in line with guidance and strategy and well above the market average.”
The Annual report 2016 is available on www.nnit.com.
Conference call details
NNIT will host a teleconference January 25, 2017 at 10:30 CET about the financial report for the full year of 2016. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under ‘Investors – Downloads’. Presentation material will be available on the website approximately one hour prior to the start of the presentation.
Contacts for further information
Jesper Vesterbæk Wagener
Head of Investor Relations
Tel: +45 3075 5392
Tel: +45 3077 8141
NNIT A/S is one of Denmark’s leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of December 31, 2016 NNIT A/S had 2,809 employees.
For more information please visit www.nnit.com.