GPV: "we are pleased with our 2023 results"
Danish EMS provider GPV grew its revenues to DKK 10.4 billion (EUR 1.39 billion) in 2023 and achieved an operating profit (EBITDA) of DKK 743 million (EUR 99.68 million).
The EMS provider says that the positive performance was achieved in part due to a successful integration process following the combination with former Enics.
GPV has increased its revenue eightfold in the last five years, reaching DKK 10.4 billion in 2023. The long-term strong growth stems both from acquisitions and organic expansion.
Revenue for Q4, 2023 was DKK 2.5 billion (EUR 335.3 million), while earnings stood at DKK 178 million (EUR 23.87 million). Q4 revenue and earnings are a few percent below the same quarter in 2022, however, the company says that the activity level at the end of 2023 was still higher than expected.
“2023 is the first full financial year of consolidating the Swiss-headquartered Enics, and this is the main reason why we increased our revenue from DKK 5.9 billion in 2022 to DKK 10.4 billion in 2023. Furthermore, higher material prices affected revenue positively and margins negatively. Despite the positive results, we saw a gradual decline in activity levels in the global electronics industry through second half of 2023. This trend was largely due to a normalisation, or market rebalancing, after some busy and challenging years in the supply chain and in logistics due to the impact of the coronavirus pandemic,” says GPV CEO Bo Lybæk, and he continues in a press release.
Bo Lybæk continues to say that due to effective control and high-capacity utilisation at the company's factories, GPV managed to maximise deliveries to customers.
"Our growth in the period outpaced demand, partly due to the fact that we began 2023 with an overdue order backlog caused by the shortage of components and partly because of general high demand from customers. With the exception of one factory, we have reduced this backlog across all our factories.”
The reported EBITDA for 2023 was DKK 743 million EUR 99.68 million), an increase of 60% compared to 2022. The result was negatively impacted by integration costs including expected costs for the closure of GPV’s factory in Malaysia.
“Overall, we are pleased with our 2023 results, and I would like to take this opportunity to thank all our employees for their good work during the year. The combination with Enics took its toll on everyone, but I am proud to say that we have achieved all the expected benefits from the combination in 2023,” continues Bo Lybæk.
GPV is looking into a 2024 that is significantly different from 2023. In general, customers have become more cautious due to a desire to adapt to the market situation, including reducing inventories across the value chain.
Bo Lybæk says that the company expect to see a lower activity level in 2024, particularly in the first half.
"Forecasting the latter half of 2024 is more difficult. Nevertheless, we expect the level of activity to recover at some point, but the magnitude of this recovery remains uncertain”, says Bo Lybæk.
