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Solid Growth for GfK

March 1 2007

Healthy preliminary figures indicate that GfK Group's 2006 organic growth of 5.4% was again ahead of the estimated industry average of 4-5%. Declining sales in Japan meant overall Asia Pacific growth was nil, but the firm's operations in Central and Eastern Europe continue to boom.

Healthy preliminary figures indicate that GfK Group's 2006 organic growth of 5.4% was again ahead of the estimated industry average of 4-5%. Tough times in Japan meant overall Asia Pacific growth was nil, but the firm's operations in Central and Eastern Europe continue to boom.

The Group has achieved its sales target in full and the margin is on the upside of the target range of 13.3% to 13.6%, which in itself was upgraded in mid-November 2006.

Sales passed the EUR 1 billion mark, increasing by 18.7%, from EUR 937.3m in 2005 to EUR 1,112m. Operating income has increased 20%, to EUR 150m and the Group now employs 7,903 staff, up 388 or 5.2% from last year.

Growth from acquisitions was 14%, with the purchase of NOP World coming in June 2005 and therefore having only a partial effect on the previous year's figures. A 9% increase in the dividend per share is proposed, to EUR 0.36.

Strong performances were notable in certain divisions:

  • Retail and Technology – increased sales by 8.9% and recorded the highest organic growth of 8.4%
  • Healthcare experienced organic growth of 8.3% and sales were up 23.9% from EUR 107.3 million to EUR 133 million.
Others took most of their growth from acquisition – the Media division's organic growth accounted for only 1.6%, but overall sales were up 21.7% from EUR 96.2m to EUR 117m.

Sales were good across all regions in 2006, with organic growth highest in Central and Eastern Europe, up 20.9%

[table]

In Central and Eastern Europe, organic growth was 20.9%, once again the highest of all the regions. GfK now achieves 6% of Group sales in this region.

GfK in America recorded the highest growth rate of all regions, mainly from acquisitions. In addition to the former NOP World companies, this included Merc in Mexico and KleimanSygnos in Argentina. Organic sales growth amounted to 3.5%.

In Asia and the Pacific, a sales increase of just 0.5% was logged, alongside organic growth of only 1.4%; the result of weaker business in Japan. The organic growth rate, excluding business in Japan, stood at a respectable 8.3%.

GfK is currently forecasting overall organic growth in sales of more than 5% in 2007, and adjusted operating income exceeding 13.5%.

The firm will publish its full financial statements on 4 April 2007. Its homepage is at www.gfk.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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