© GPV Electronics Production | November 11, 2019
GPV's revenues soars 130%
Danish EMS provider, GPV Group, announces that the company generated revenues of DKK 2.2 billion in the first nine months of 2019, a 130% year-on-year improvement driven by the acquisition of Swiss company CCS at the end of 2018.
Revenue grew from DKK 322 million (EUR 43.09 million) in Q3 2018 to DKK 741 million (EUR 99.1 million) in Q3 2019, bringing revenue for the year up to 30 September to DKK 2.17 billion (EUR 290.4 million) from DKK 903 million (EUR 120.84 million) in the 9 months 2018 period. “Obviously, the acquisition of CCS, which was completed by the end of 2018, and the following integration process have taken up a lot of time across our organisation over the past nine months. We began the integration in January 2019 when all units were renamed globally to reflect the GPV brand and every day since then we’ve been busy taking the best of both worlds,” says GPV’s CEO Bo Lybæk, in a press release. “The entire process has been as expected, only the integration costs have been lower than we had budgeted for. In fact, GPV and CCS have proven to be a perfect match – both in-house and in our customer-facing operations.” EBITDA rose from DKK 37 million (EUR 4.95 million) in Q3 2018 to DKK 56 million in Q3 2019, bringing earnings for the nine-month period to DKK 143 million (EUR 19.13 million). “Our largest production unit is located in Bangkok, Thailand, and here we have seen a 12 percent strengthen of the Thai baht in just 12 months. That has squeezed our contribution margin on products manufactured in Thailand, because local costs became relatively more expensive relative to the currencies we primarily invoice our customers in. Furthermore, demand from a handful of our largest customers has weakened, particularly here in the third quarter, mainly due to the geopolitical uncertainty arising from the US-China trade war,” Bo Lybæk continues. He adds that a trade agreement between the USA and China will likely eliminate some market concerns, but that it will be difficult to reverse the downward trend of global activity in the short term.