© GPV Electronics Production | August 13, 2021
GPV delivers record results and order intake
Record high demand from customers led to double-digit growth in both revenue and earnings in H1 2021 for Danish EMS provider GPV.
The electronics industry and other industries continue to struggle with the global shortage of materials which has also challenged GPV. at the same time GPV has experienced a record order intake and is investing significantly in expanding capacity to meet the growing demand. The electronics manufacturer recorded revenue of DKK 1.50 billion (EUR 201.67 million) in H1 2021 against DKK 1.35 billion (EUR 181.51 million) in the same period last year which amounts to an increase of 11%. Adding to the positive results, total earnings (EBITDA) reached DKK 152 million (EUR 20.43 million) compared with DKK 108 million (EUR 14.52 million) last year. “Early 2021, we experienced a strong increase in demand. This development continued well into the second quarter, and we’ve now delivered our best first half-yearly financial report ever. We’re naturally very pleased with the results, and I would like to thank all our employees for their skilled and motivated efforts. The material supply situation has been difficult to manage and still is. On a daily basis, we have to stir, adjust, and coordinate with all our sites across the organisation, and it’s now more crucial than ever to secure that procurement, production, sales, and delivery work closely together,” says CEO Bo Lybæk in the report. GPV has launched several initiatives to mitigate the effects of the current global shortage of materials and the ensuing logistical challenges. On a weekly basis, executive management meets with the local management teams at the group’s largest sites to support and facilitate steering, share knowledge, and to coordinate how to distribute the scarce resources of materials and capacity as optimally as possible. The company is also successfully supporting the redesign of products. If a product cannot be produced due to a lack of materials, GPV helps with the redesign and production of a customer’s products or introduces alternative components in close collaboration with customers. ”We’re currently in a situation where our customers are often forced to think about redesigning specific components because of the material supply situation. When that happens, we help them redesign or find full-fledged alternatives and available components so we can secure production. In short, when we reduce one of our customers’ current biggest challenges, this reflects positively on us in terms of goodwill and growth,” explains the CEO. In light of the positive development, GPV still expects full-year 2021 revenue in the DKK 2.9-3.0 billion range and raises its EBITDA guidance to the DKK 260-300 million range.