GPV kicks off 2021 with a solid performance
Danish EMS provider GPV just finished up its first quarter of 2021 and delivered record results. With a solid start to 2021 the company has set the tone for the remainder of the year.
The positive results delivered during the company's first quarter also led to GPV upgrading its full-year guidance to a revenue of DKK 2.9-3.0 billion (EUR 389.94 - 403.39 million). The positive start is however shadowed by shortage in materials giving challenges and complicating on-time-delivery to customers. GPV achieved revenues of DKK 741 million (EUR 99.64 millon) in the first quarter of 2021, a 9% increase from DKK 679 million (EUR 91.30 million) in the same quarter last year. The company is crediting the growth to customers within the semiconductor, cleantech and the instrument & industry segments where sales increased. In terms of results, the first quarter of the year also exceeded expectations. EBITDA reached DKK 76 million (EUR 10.22 million), compared with DKK 46 million (EUR 6.18 million) during the same period last year. "It is positive that we so far have weathered well through the global coronavirus pandemic. Twelve months ago, the situation was marked by great uncertainty, and now, we are able to present a record-breaking result for both 2020 overall and Q1 2021. Naturally, we are very pleased with the results, however we still have substantial challenges to overcome," says GPV’s CEO Bo Lybæk in a press release. He goes on to say significant increase in demand for components has put the company's procurement department under real pressure. The increased global demand for electronics components, as well as other materials, has led to significantly longer lead times and higher prices. The CEO describes the materials shortage as the compay's single biggest challenge at the current moment. "We receive the materials late, often with partial and unprecise deliveries which complicates on-time delivery to our customers. Everyone in the organisation works hard to handle the situation as well as possible, and for that I am very grateful," the CEO says.