Core Insights - Bang & Olufsen's CEO Kristian Teär has stepped down, with Nikolaj Wendelboe appointed as interim CEO while a search for a new CEO is underway [1][2] - The company aims to maintain its strategic direction and ambition to strengthen its position as a global leader in luxury audio despite the leadership change [2] - Preliminary financial results for Q2 and H1 of FY 2025/26 have been announced, indicating a decline in revenue but an increase in gross profit and gross margin [3][6] Leadership Change - Kristian Teär's leadership was pivotal during his tenure, especially through the COVID-19 pandemic, and he has been credited with strengthening the company's financial position [2][3] - The Board of Directors has determined that new leadership is necessary to guide the company through its next phase, approximately six months into a three-year mid-term plan [2] Financial Performance - Preliminary Q2 2025/26 reported revenue was DKK 676 million, a decline of 3.2% year-on-year, with a 5.5% increase in revenue from branded channels [6] - For H1 2025/26, reported revenue was DKK 1,119 million, down 3.9% year-on-year, with a decline of 3.5% in revenue from branded channels [6] - Gross profit for Q2 increased by DKK 17 million to DKK 391 million, with a gross margin increase of 4.2 percentage points to 57.9% [6] - The EBIT margin before special items for Q2 was -5.3%, compared to 1.7% in Q2 2024/25, while for H1 it was -5.3% against -0.4% in H1 2024/25 [6] - Free cash flow was reported at DKK -33 million for Q2 and DKK -168 million for H1 [6] Financial Outlook - The FY 2025/26 outlook for EBIT margin before special items remains unchanged at -3% to 1% [5] - Revenue growth outlook in local currencies has been narrowed to 1% to 5%, down from a previous range of 1% to 8% [6] - Free cash flow outlook has also been narrowed to DKK -100 million to -50 million, previously DKK -100 million to 0 million [6]

Core Viewpoint - NNIT has updated its financial outlook for 2025 due to a slowdown in market and customer activity, leading to a suspension of its mid-term financial aspirations [1][4][5] Financial Outlook for 2025 - Organic revenue growth for 2025 is now anticipated to be around -3%, a decrease from the previous expectation of 0-5% [2] - The expected operating profit margin excluding special items is revised to around 5.5%, down from the previous low end of 7-9% [2] - Special items are now expected to be around DKK 83 million, an increase from the previous estimate of up to DKK 69 million, primarily due to an accelerated strategic process and cost-out project [2] Performance Drivers - The lower-than-expected financial performance is attributed to a temporary disruption in the US region, where several larger projects have been postponed to 2026 [3] - The US business has experienced a slowdown in new contract wins, negatively impacting revenue generation in the fourth quarter [3] - In Europe, performance remains subpar, with larger customers hesitant to enter new contracts [3] Mid-term Financial Aspirations - The mid-term financial aspirations communicated in February 2025 have been suspended due to increasing uncertainty in the macroeconomic and geopolitical environment [4][5] - The previously announced targets of annual organic revenue growth of 7 to 10% and an operating profit margin above 10% in 2027 are no longer in effect [5] Company Overview - NNIT is a leading provider of IT solutions, focusing on high complexity industries, particularly in life sciences and the public and private sectors in Denmark [6][8] - The company employs around 1,600 people across Europe, Asia, and the USA [8]

Core Viewpoint - NNIT's financial performance in Q1 2025 was impacted by increased macroeconomic and geopolitical uncertainty, leading to an adjustment in the 2025 financial outlook [1] Financial Performance Summary - Q1 2025 Group revenue was DKK 464 million, slightly up from DKK 463 million in Q1 2024, but organic growth was negative at -0.8% compared to 8.0% in Q1 2024 [3][4] - Group operating profit excluding special items was DKK 18 million, down from DKK 24 million in Q1 2024, resulting in a margin of 3.9%, compared to 5.2% in the previous year [3][4] - Special items for the Group amounted to DKK 25 million, primarily due to restructuring costs, contrasting with an income of DKK 11.3 million in Q1 2024 [3][4] Regional Performance Summary - **Region Europe**: Revenue decreased to DKK 119 million from DKK 126 million, with a regional operating profit margin of 10.0%, down from 11.2% [4] - **Region US**: Revenue decreased to DKK 87 million from DKK 93 million, but regional operating profit margin improved to 30.4% from 19.0% [4] - **Region Asia**: Revenue increased to DKK 37 million from DKK 32 million, with a regional operating profit margin of 7.6%, up from -5.3% [4] - **Region Denmark**: Revenue increased to DKK 221 million from DKK 212 million, but regional operating profit margin decreased to 15.1% from 22.6% [4] Outlook and Cost Management - Organic revenue growth is now expected to be between 0% to 5%, down from a previous forecast of 7% to 10%, due to project postponements and slower sales pipeline materialization [2] - The Group operating profit margin excluding special items is maintained at 7% to 9%, supported by significant cost-reducing initiatives, including capacity adjustments and reduced spending [2][4]