In This Article:
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Q4 Revenue: DKK470 million, organic growth of 7.1%.
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Q4 Operating Margin: 9.1%.
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Full Year 2024 Organic Growth: 6%.
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Full Year 2024 Revenue: DKK1.85 billion.
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Special Items 2024: DKK69 million.
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Customer Satisfaction Score 2024: 4.5 out of 5.
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Net Promoter Score 2024: 443.
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2025 Organic Growth Target: 7% to 10%.
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2025 Operating Profit Margin Target: 7% to 9%.
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2027 Organic Growth Aspiration: 7% to 10% annually.
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2027 Operating Profit Margin Aspiration: Above 10%.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NNIT AS (STU:5NN) achieved a solid organic growth of 6% for the full year 2024, aligning with their latest outlook.
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The company reported a strong customer satisfaction score of 4.5 out of 5, the highest ever, indicating robust customer relationships.
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NNIT AS (STU:5NN) successfully integrated several acquired companies into its operations faster than planned, streamlining its system landscape.
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The public segment in Denmark experienced close to 30% growth, with significant contract wins contributing to this success.
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The company has set ambitious financial aspirations for 2027, targeting an organic growth of 7% to 10% and a profit margin above 10%.
Negative Points
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NNIT AS (STU:5NN) faced challenges in 2024, including a slower recovery in the data migration business and cautious customer behavior.
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The company experienced a moderate market slowdown in Europe and continued challenges in Asia, particularly in China.
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Profitability in Europe was below last year's level due to low utilization of personnel.
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Special items for 2024 were higher than initially planned, totaling DKK69 million, impacting financial performance.
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The company anticipates a lower performance in Q1 2025, with gradual improvements expected throughout the year.
Q & A Highlights
Q: Regarding special items, is the restructuring cost expected to be below DKK20 million or DKK50 million in 2025? A: It is expected to be below the restructuring cost of 2024, which was DKK50 million. (Carsten Ringius, CFO)
Q: What is the sustainable gross margin in the US going forward? A: We expect the gross margin to be above 40% for the US business going into 2025, higher than the beginning of the year. (Carsten Ringius, CFO)
Q: Can you provide comments on free cash flow and depreciation and amortization for 2025? A: Significant project activities in 2024 impacted cash flow, including IT separation and ERP platform investments, totaling over DKK100 million. These activities will not be repeated in 2025, improving cash flow. (Carsten Ringius, CFO)