GPV reports 14% drop in sales amid ‘rebalancing of market’
The Danish-based EMS firm generated sales of DKK 4.6 billion in H1 2024 compared to DKK 5.4 billion in the same period last year.
GPV has reported a 14% drop in sales and a decrease in earnings (EBITDA) from DKK 368 million in H1 2023 to DKK 300 million in H1 2024.
The Danish-based EMS firm generated sales of DKK 4.6 billion in H1 2024 compared to DKK 5.4 billion in the same period last year.
“As expected, rising global interest rates and a re-balancing of the market have resulted in a lower activity level in the electronics industry. At the same time, market conditions have become far more complex due to the geopolitical developments. Overall, the US out-of-China approach and the market effects following is having a significant impact on global trade,” said GPV CEO Bo Lybæk.
GPV was handling “regionalised globalisation tendencies,” he said.
“Therefore, the industry is currently in an adjustment phase, which, together with a continued outsourcing, gives us some exciting new opportunities.”
Bo Lybæk said much of the demand in the American market was now moving towards Mexico. Consequently, GPV is doubling the production area there in 2024, with the final layout expected to be completed in the first half of 2025 and key production equipment is being relocated from regions with lower demand. A similar trend is taking place in Southeast Asia, he said.
Meanwhile, the company has expanded in Slovakia with a new 11,000 sqm electronics manufacturing plant, where production is expected to start in October.
