VEJLE, DENMARK – Electronics manufacturer GPV reported third quarter revenue of DKK 799 million (US$121.7 million), down 4% year-over-year.

EBITDA was DKK 102 million, up 21.4% compared to the third quarter of 2020, as a result of high-capacity utilization across sites and growing demand from a broader range of customers.

“Global demand for a wide range of electronics products remains much higher than the current supply, and in the third quarter, these shortages and international logistics challenges have only increased. This has left the market situation upside down in many ways,” said GPV CEO Bo Lybæk. “This means we have spent a significant amount of our time in dialogue with customers and suppliers, while optimizing our production and inventories, so we can finalize production in the best possible way as soon as the components reach our factories. We have managed this capacity puzzle quite well so far, and that is one of the reasons why we achieved record top and bottom lines for the first three quarters of 2021 and in addition are able to raise guidance for the full year.”

In the first nine months of 2021, GPV delivered revenue of DKK 2.3 billion, an increase of 4.5% compared to the same period last year. EBITDA was DKK 254 million, growth of 33%.

GPV expects revenue for 2021 in the range of DKK 3 billion to DKK 3.1 billion. Profit is expected to be DKK 300 million to DKK 320 million, driven by a record order backlog.

“Our backlog of orders has almost doubled in the last 12 months, and this symbolizes the very special situation that both the market and we find ourselves in. The high level is partly the result of us asking our customers to extend their demand horizon and partly due to a general increase in business activity.”

GPV increased inventory levels approximately DKK 400 million.

“It hurts to call a customer and explain a delivery delay. Unfortunately, we have tried this many times recently, and although we always want to deliver on time, we are up against something bigger here. Fortunately, there is a great deal of understanding for this, as long as we do everything we possibly can.”

The company is building a new factory in Sri Lanka to replace the existing factory. Construction is due to be completed in the beginning of 2023 and will expand the factory's area 40%.

In a few months, GPV will also start construction of a new factory in Thailand, scheduled for completion in early 2023.

“Although most of our time is spent dealing with acute supply chain challenges, we are very aware not to neglect our opportunities to think and plan long term. We do not know when the situation will normalize, but we know this will happen eventually, and we have both the strength and the will to prepare for growth in the long run as well. Here, we believe we have a competitive edge.”

Ed.: DKK 1 = US$0.15

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