© GPV Electronics Production | March 06, 2020
GPV jumps up a league with 2019 revenues
Danish EMS provider, GPV, reported revenues of DKK 2.86 billion (EUR 375 million) for 2019. The acquisition of Swiss CCS more than doubled the size of the company, propelling GPV into a completely different European league.
The company more than doubled its revenues in 2019 to DKK 2.86 billion (EUR 375 million) from DKK 1.22 billion (EUR 163.2 million) in 2018. Representing a 134% increase, the reported revenue is more than DKK 100 million (EUR 13.3) higher than forecast. The increase in revenue was predominantly driven by Swiss electronics manufacturer CCS, acquired in late December 2018 and which was included in the 2019 financial statements for the first time. “In late 2017, we adopted a new growth strategy that would see us doubling our revenue within five years from DKK 1.15 billion at the time. The acquisition of CCS and the performance we’re reporting for 2019 today show that we’ve reached that goal ahead of time. This is not least due to the successful integration of GPV and CCS, which began on 7 January 2019 when all units were renamed GPV globally. Obviously, this was a high priority project for us throughout 2019,” says CEO Bo Lybæk in the company’s annual report. GPV reported EBITDA of DKK 196 million (EUR 26.2 million) for 2019, up from DKK 114 million (EUR 15.2) in 2018. Bo Lybæk points to the fact that the US-China trade war had a negative impact on the company’s figures, as some major customers became reluctant to place orders, but that sentiment was replaced by more optimistic views during the fourth quarter. “With the integration competed, GPV has a very special position in what we call HMLM (high-mix/low-medium) volume production. It means that we are as flexible as some of the smaller manufacturers, but also as capable in terms of high-volume orders and cost efficiency as some of our largest peers. We’ve consolidated this position and made the ‘New GPV’ even stronger, in part thanks to the highly successful integration in 2019,” says Lybæk. During the year the EMS provider launched an ambitious investment programme to implement further automation and efficiency improvements at its factory sites in Denmark, Switzerland, Thailand, Mexico, Germany, Austria, Slovakia, Sri Lanka and China. GPV has recently invested in a 2,300 square metre high-ceiling warehouse at the electronics factory in Thailand, and a comprehensive project planned for 2020 will extend and modernise the electronics site in Sri Lanka to cover 10,000 square metre. The extension is scheduled for completion in 2021. Having already reached its 2022 targets in 2019, GPV is currently implementing a new, updated business strategy. The new strategy envisions very strong growth as the company works towards its next target, which is to generate annual revenue of DKK 4 billion (EUR 535 million). “We believe that staying focused on delivering solid earnings is crucial to continuing our growth journey,” Lybæk concludes.