VEJLE, DENMARK – GPV reported first half revenue fell 5% year-over-year, with net profit increasing 23% to a record DKK 108 million (US$17.2 million).

Revenue dipped in most business segments, according to reports, offset in part by higher sales to the medical and semicon industries.

Second quarter EBITDA grew 48% to a record DKK 62 million ($9.9 million). During the period, the EMS company reduced operating costs and improved capacity utilization in some product lines.

“Developments in the first half, and especially in the second quarter, created uncertainty in the global economy and challenged most businesses,” said CEO Bo Lybæk. “We have experienced a modest drop in revenue of 5% compared to the same period last year, which we consider a satisfactory performance under the prevailing circumstances.”

A few of GPV’s EMS facilities have been fully or partially closed because of the Covid-19 lockdown in China and other countries. The firm says no staff members have been infected with the coronavirus.

“Reducing costs is a strategic focus for our company and includes continuous alignment to market requirements. The margins in the electronics industry are low, and it is thus decisive for us to maintain our competitive edge in the global market.”

GPV will introduce a new manufacturing execution system during the second half of 2020, to be rolled out at all sites.

The EMS firm recently won six large orders from existing and new customers.

“It goes without saying we are monitoring the situation closely and are ready to adjust our operations accordingly. We have a good overview of the ongoing third quarter, but the visibility becomes lower when we extend our outlook to the fourth quarter and 2021,” Lybæk said.

GPV restated its full-year guidance of revenue of DKK 2.7 billion (US$430.7 million) and EBITDA of DKK 230 million.

Ed.: DKK 1 = US$0.16

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