Giesecke+Devrient Announces 2020 Annual Results

Giesecke+Devrient (G+D) said it achieved sales of €2.31 billion, almost on a par with the previous year. 

G+D was able to boost its operating result by 13% to €153 million. 

A 6% growth in incoming orders to a total of €2.4 billion demonstrates the growing demand for G+D’s safety-related products and solutions.

G+D, like many other companies, faced considerable challenges in the past financial year due to the COVID-19 pandemic. 

The company said it also continued to advance key strategic initiatives in its business portfolio around security in the core areas of payment, connectivity, identities and digital infrastructures.

Among other things, G+D said it invests in the innovation of a digital currency for central banks, thus addressing a topic crucial to the future of payment transactions at an early stage. 

Around 80% of the world’s central banks are working on the introduction of a digital currency or Central Bank Digital Currency (CBDC), according to G+D who said it is already carrying out the first pilot projects in this area with central banks.

As a result, group revenue in the 2020 financial year reached €2.31 billion, only 5% below the previous year’s level. The continuing travel restrictions had a particular impact – especially with regard to the handling of major projects and the service business.

The company’s operating result also showed positive developments. At €153 million, the result from operating activities was 13% higher than in the previous year. Earnings before interest and taxes (EBIT) remained at the high level of the previous year at €131 million. The net profit for the year amounted to €43 million.

G+D was able to increase its order intake by 6% to €2.4 billion. 

At €1.6 billion, the order backlog in 2020 is also above the previous year’s high level of €1.5 billion.

In 2020, the technology group acquired stakes in the Swiss software company Netcetera and the crypto-asset company Metaco. 

Overall, the investment volume of €131 million matches that of the previous year.

For 2021, G+D plans to closely match the revenue and earnings level of the reporting year. 

With a solid order backlog, G+D is starting the current financial year in a very good position. However, the forecast for 2021 remains subject to uncertainty due to the ongoing global pandemic.

“Even in light of crisis, we have proved to be a reliable partner for our customers. In a challenging financial year 2020, we managed the impact of the global Corona pandemic on our business very well while keeping our sights on further growth,” said Ralf Wintergerst, chairman of the Management Board and group CEO of Giesecke+Devrient. “Last year, we set the right development targets for G+D and invested heavily in our digital portfolio. In particular, we were able to successfully further expand the future fields of digital payment and encryption technology.”