Strong performance prompts GPV to once again raise its outlook for 2023
Danish-based EMS provider GPV, once again raises its outlook for 2023. In the second quarter of 2023, the company achieved record revenue of DKK 2.7 billion (EUR 362.3 million) and EBITDA of DKK 189 million (EUR 25.3 million).
Combined with a more positive outlook for the remainder of the year, this has prompted an upgrade of GPV’s expectations for the full year.
The Danish electronics manufacturer is now targeting revenue in the range of DKK 9.9–10.3 billion (EUR 1.32–1.38 billion), up from the previously expected DKK 8.8–9.2 billion (EUR 1.18–1.23 billion). At the same time, expectation for full-year earnings (EBITDA) is raised from DKK 590–640 million (EUR 79.17–85.88 million) to the DKK 650–700 million (EUR 87.22–93.93 million) range.
“We are on a positive journey, and first and foremost, I would like to thank my many colleagues for their dedication and commitment, which I see every day at our sites and offices around the world. The combination with Enics, which has now been in effect for three quarters, is progressing as planned, and in June 2023, we launched a common organisational structure. We continue to see strong demand with customers supporting the green transition, and this is an important driver in the current positive development,” says CEO of GPV Bo Lybæk in a press release.
GPV realised revenue of DKK 2.7 billion (EUR 362.3 million) in Q2 2023, bringing the total revenue for the first half of the year to DKK 5.4 billion (724.6 million). This is an increase of 151% compared with the first half of 2022. Earnings (EBITDA) in Q2 2023 amounted to DKK 189 million (EUR 25.3 million) and DKK 368 million (EUR 49.3 million) overall for the first half-year. This is a 95% increase over the first half of 2022.
“Both revenue and earnings are developing satisfactorily, but we still struggle with high component prices among other post corona effects. The high prices on input materials have a positive impact on the top line but challenges the bottom line. In general, however, we see improvements in the availability of electronics components,” says Bo Lybæk.
The company explains that the continued shortage of components is the primary reason why GPV still has an above-normal working capital. Reducing the working capital is a focal point, but securing supply to customers also weighs heavily, and therefore the company will still be using a large the part of the working capital to build up inventories.
Another focal point before, during and after the combination with Enics is a significant expansion of production capacity. In the first half of 2023, GPV commissioned a new mechanics factory in Thailand and a new electronics factory building in Sri Lanka. In Mexico, the total area will double to 8,200 square metres by the end of 2023, and in Slovakia, GPV is preparing a new electronics site covering 11,000 square metres which is expected to be operational in Q1 2024:
In addition to the above-mentioned factory expansions, GPV has invested in capacity expansions at its factories in Estonia, Sweden, and Finland, which specialise in different branches of the EMS industry.