NNIT releases financial results for Q1 2025

The overall financial performance in Q1 2025 shows flat growth due to a challenging start to the year.

NNIT’s Q1 2025 financial performance was expected to be moderate, but the increased macroeconomic and geopolitical uncertainty has impacted the company to a larger extent than expected. First quarter showed a flat growth and based on the realized results and the continued uncertainty, NNIT adjusts its 2025 revenue outlook.

CEO Pär Fors comments:

“The business environment we operate in has deteriorated during the first quarter of the year as especially our Life Sciences customers are being negatively impacted by the macroeconomic unrest. Our customers are hesitant to engage in new contracts before things are stabilizing and the impact of this uncertainty is more severe than initially expected, hence our full-year revenue outlook has been adjusted. At NNIT, we fully acknowledge our customers’ challenges as we navigating through this environment to continue our strategic journey. However, we truly believe that we are in a good position to support our customers moving forward with our unique combination of understanding both their business challenges and their technology.”

Key Highlights:

• NNIT’s overall financial performance in Q1 shows flat growth
• The macroeconomic and geopolitical uncertainty influenced customer behavior, especially in our three regions focusing on Life Science solutions; Region US, Region Asia and Region Europe, where several projects have been postponed, most predominantly in Region Europe
• Despite the challenges, our Life Sciences business in the US increased profits significantly
• In Asia, we successfully continued our turnaround with increased revenue and profit
• Due to the delayed customer projects in Region Europe we have aligned our organization to fit the market conditions
• In Denmark, we saw growth of around 4% where selected solution areas focusing on the Public sector in Denmark is showing growth upwards at 8%. SCALES continues to solidify its position as an ERP market leader in Denmark.

Selected Key Financial Figures:

• NNIT’s revenue in Q1 amounted to DKK 464 million compared to DKK 463 million in Q1 last year
• Group operating profit excl. special items was DKK 18 million (compared to DKK 24 million in the same period last year), equal to a margin of 3.9% (compared to 5.2% in Q1 2024)
• The decline in profit and margin was due to the lower profit generation in Region Europe and Region Denmark, which was, however, partly offset by improved profitability performance in Region US and Region Asia

Outlook for 2025:

• We see customers, especially within Life Sciences, hesitating to engage in new contracts which materializes in a slower sales pipeline
• Hence, our organic revenue growth for 2025 is expected to be between 0-5% (adjusted from 7-10%)
• Our expectations for the group operating profit margin excl. special items are maintained at 7-9% as we have executed several cost reducing initiatives, which include capacity adjustments across the group, to minimize the impact on our profitability
  

Please refer to nnit.com - Investors for our full company announcement regarding the financial results for Q1 2025.