VEJLE, DENMARK – GPV reported revenue of DKK 1.5 billion (US$238.4 million) in the first half of 2021, up 11% year-over-year.

EBITDA was DKK 152 million, an increase of 40.7%. GPV experienced record orders during the period.

“Early 2021, we experienced a strong increase in demand,” said CEO Bo Lybæk. “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 organization, and it’s now more crucial than ever to secure that procurement, production, sales, and delivery work closely together.”

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 coordinate how to distribute the scarce resources of materials and capacity as optimally as possible.

GPV is also 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.”

Increasing demand in the first half was driven by Instruments & Industry, CleanTech, and Transport. GPV implemented two new full SMT lines and two new THT lines at its Thai electronics site. Meanwhile, capacity at existing SMT lines in Slovakia, Sri Lanka, and Mexico has been expanded.

GPV has initiated the construction of a bigger factory in Sri Lanka as a replacement for the existing electronics factory, to be completed at the end of 2022. Early 2022, GPV also begins construction on a new mechanics site in Thailand, which will be completed in the beginning of 2023.

“Due to our long-term growth strategy, we have continuously scheduled capacity expansions. This now results in great advantages where more companies wish to invest in new SMT lines. The first lines have already been set into operation, and the next have been ordered. It has been a strategic move to invest, as we did not want equipment blocking to keep us from meeting the high demand from our customers, and I strongly believe this will continue to give us an advantage in the long run.”

There has been a resurgence of Covid-19 cases in many parts of Southeast Asia, which risks further worsening and prolonging the challenges, but production is not affected.

“We’re monitoring the situation closely and are in close dialogue both with our sites and individual customers. Everyone is aware of the situation, so we try to be transparent to make it easier for us to react as quickly as possible. All things considered, I’m optimistic and believe we’ll come out stronger from this unique situation that we and the rest of the industry have been put in.”

The company maintains sales guidance at DKK 2.9 billion to DKK 3 billion for 2021, raising EBITDA guidance to DKK 260 million to DKK 300 million.

Ed.: DKK 1 = US$0.16

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