VEJLE, DENMARK -- GPV Group said revenue rose by 49% in the second quarter over last year to a record DKK 1.134 billion (US$155 million) on higher demand and high utilization at its 12 factories worldwide.

Based on the performance, the EMS company raised its full-year guidance.

Revenue at the top-10 electronics manufacturing services provider in Europe is up 43% overall for the first half, a new company record.

“We are very pleased with our significant organic growth over the past years which is driven by two elements – most importantly, higher demands from our customers and in addition, higher material costs. A part of our increasing sales comes from new customers who choose us because of our service excellence and our integrated sustainability profile. Here, we have pushed forward and will continue to push in the years to come due to our ambitious goal of a 50 per cent reduction1 of our carbon emissions from our 2020 baseline towards 2025,” said Bo Lybæk, CEO, GPV.

In terms of earnings, 2022 has also developed better than expected. For the quarter, GPV realized EBITDA of DKK 97 million compared to DKK 77 million the previous year. Total earnings for the first half were DKK 188 million, a 24% increase.

“We are still in a situation with challenging material supply and short-term decommits unfortunately defining the developments in our industry. We expect this situation to continue for at least the rest of 2022, making visibility generally low. This is one of the reasons why, during the last 12 months in close cooperation with our customers, we have doubled our commitment to working capital with around one billion Danish kroner. While this would normally be considered a negative development, however, it is an investment we have made, simply to better secure deliveries to our customers. At the same time, we have managed to make maximum use of our existing capacity and to continuously add new capacity. It has been the best recipe for navigating safely through the supply chain crisis,” said Lybæk.

In light of the results, GPV raised its full-year guidance for the second time this year and before any effect from the merger with Enics. Revenue is expected to be DKK 3.9 billion to 4.1 billion, compared to original guidance of DKK 3.5 billion to 3.7 billion. Earnings guidance is raised to DKK 330 million to DKK 360 million, from DKK 310 million to DKK 350 million.

GPV continues to work on several major capacity expansions. This includes a new mechanics factory in Thailand followed by an expansion of our existing electronics factory in Thailand and an extension of the existing electronics factory in Sri Lanka, as well as a range of capacity expansions in Europe, Asia, and Mexico. 

With the upcoming merger between GPV and Enics, the former's revenue target of DKK 7.5 billion by 2025 will be achieved earlier. Enics has seven factories in Europe and Asia and employs around 3,500 people. The company had revenue of DKK 4 billion and EBITDA of DKK 220 million in 2021. The merger will take place under a new holding company with Schouw & Co. owning 80% and the remaining 20% held by Ahlström Capital, the current owner of Enics. The new company will be headquartered at GPV’s current premises in Vejle with Lybæk leading the integration of the two companies.

“We are very excited about the upcoming merger with Enics. The planning of the integration of the two companies has begun and is progressing very well. We both have our strengths within the industrial segment, and we complement each other in terms of production technology, know-how and geographical presence. I have the utmost respect for Enics, and I approach the planning process with careful regard for best practices so that we can find the best solutions together. I am looking forward to closing so we can meet everyone in the new combined company,” said Lybæk.

The combined company will have production facilities in 13 countries spread across three continents and will be a number 2 EMS company headquartered in Europe. The merger is currently awaiting customary approvals, including from competition authorities.

1 DKK = 0.137039 USD

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