GPV raises its guidance for 2020 following strong 3Q

Denmark's largest electronics manufacturer has experienced growing demand in select customer segments in Q3 2020. Revenue grew to DKK 836 million (EUR 112.14 million) in Q3, which is an increase of 13% compared to the same period last year where GPV realised a revenue of DKK 741 million (EUR 99.4 million). In the same period, earnings (EBITDA) increased by 50% – from DKK 56 million (EUR 7.51 million) in Q3 last year to DKK 84 million (EUR 11.27 million) this year: "As stated in our Q2 reporting three months ago, we made it well through H1 despite the global coronavirus pandemic. However, we did not expect Q3 to turn out as well as it has. We have experienced both increasing and decreasing demand within our different customer segments but overall, we have managed to lift revenue by 13 percent and earnings by 50 percent. Given the circumstances, we are satisfied with the results," says CEO Bo Lybaek in a press release. The recent growth is particularly due to a three-figure million order from a ventilator manufacturer. Most of the order was delivered and invoiced in Q3 which has had a significant impact on both the top- and bottom-line: "Skills, dedicated work as well as a bit of luck have been factors in getting and delivering the order relatively fast. It is an order, however, which is a result of the coronavirus crisis and an unusual demand for ventilators. Therefore, we do not expect similar orders in the future," Bo Lybaek says and continues. "From my perspective, we got the order due to our good reputation with the customer and in the industry where we excel in high-mix/low-medium volume production. In other words, we are more agile than the largest companies in the industry while at the same time having greater capacity than the small or medium-sized companies who are not able to lift an order of this size so quickly." Bo Lybaek adds that GPV’s four main market segments have developed very differently in 2020. MedTech is growing, while the Transport segment has been declining. Here, GPV is delivering to the construction equipment industry which has been affected by a drop in demand. In the Instruments & Industry segment, which is the biggest segment for the company, some of the customers are doing well while others are struggling. The same goes for the Cleantech segment in which some of the customers are hesitant to invest while others are growing rapidly due to the global climate movement. Following the strong performance in Q3, GPV raises its guidance for the 2020 full year. Revenue is now expected to be at the same level as 2019 which was DKK 2.8-2.9 billion (EUR 375 - 389 million) against the previous guidance of DKK 2.7 billion (EUR 362 million).