GPV increases revenue and raises full-year outlook
GPV, continues its growth journey, reporting record revenue of DKK 1.15 billion (EUR 154.5 million) for the third quarter. The positive performance leads GPV to raise its guidance for 2022 once more.
The merger between GPV and Enics was completed on the third of October 2022 – as previously reported by Evertiq – which means that from Q4 2022 onwards, financials from Enics will be part of the consolidated GPV figures.
The interim report for Q3 includes only GPV figures, where sales is increasing for the third consecutive quarter. Revenue is 45% higher than in the same period of last year.
GPV delivered revenue of DKK 3.3 billion (EUR 443.6 million) for the first nine months of the year, compared to DKK 2.3 billion (EUR 309.1 million) in the same period last year. GPV’s CEO Bo Lybæk is satisfied with the company’s performance.
“First and foremost, we are pleased that demand from many of our customers has been growing, which is the main reason for the increase in revenue. Part of the improvement is also due to significant price increases for components and materials. Still, we have managed to strengthen our partnerships with existing customers while also attracting new ones,” says the CEO.
GPV’s third quarter of 2022 ended with earnings of DKK 96 million (EUR 12.9 million) (EBITDA) compared to DKK 102 million (EUR 13.7 million) in Q3 2021. The company states that increased costs of materials, freight, and energy reduced earnings, but that the result is better than expected.
After the first nine months of the year, GPV generated earnings of DKK 284 million (EUR 38.1 million) (EBITDA) compared to DKK 254 million (EUR 34.1 million) in the same period in 2021.
In general, the industry still faces challenges with lacking components and other materials, but GPV says that it has taken several initiatives to mitigate the consequences.
“Although we see signs of improvement, materials supply remains a challenge in our industry with allocations and short-term decommits. Due to the greatly increased order backlog and commitments from customers, we have increased our inventory significantly and thus our investment in working capital, which under normal circumstances would be considered a negative move. However, our aim has been to secure deliveries to our customers in the best possible way,” says Bo Lybæk in the report.
The merger has a positive impact on Q4 revenue and profit
GPV's revenue and profit for the full year will be positively impacted by the merger with Enics. The transaction was closed on 3 October 2022 and the two companies have now merged into GPV Group A/S.
Therefore, GPV has increased its expectations for the full year of 2022, the company now expects revenue of DKK 5.2-5.6 billion (EUR 699 – 752 million), compared to the previous outlook of DKK 3.9-4.1 billion (EUR 524 – 551 million) before the merger.