GfK Reports First Quarter Sales and Income Decline

GfK has reported a 2.4% drop in first quarter group sales to EUR 352m, while the profit measure EBITDA fell 34.3% to EUR 29.4m.

Adjusted operating income fell around a third from EUR 32.1m to EUR 21.6m. In organic terms, consolidated sales were down 2.7% - positive currency effects of 1.5% more than balanced the 1.1% negative impact of acquisitions and divestments.

By sector, the Consumer Choice division reported a 4.1% decline in sales to EUR 162.9m from EUR 169.9m in Q1 2016; and an organic sales decline of 2.7%. Sales in the Consumer Experiences sector fell 0.8% to EUR 189.0m, from EUR 190.5m a year earlier. In a 'challenging market environment' in ad hoc business, the company reported an organic decline in sales of -2.7%.

Regionally, Latin America was worst hit with an 8.4% decline in sales to EUR 15.7m, sales fell 7.1% to EUR 123.8m in Northern Europe, and by 4.3% to 69.2m in North America. However, sales were up in Central & Eastern Europe; Asia and the Pacific; and Southern and Western Europe (9.7% to EUR 31.9m, 4.4% to EUR 47.3m, and 1.2% to EUR 64.1m respectively).

In a statement, the company said: 'GfK is assuming that 2017 will continue to be characterized by a challenging competitive environment. The subdued start to the first three months means that developments in both sales and adjusted operating income fell short of expectations. If GfK does not successfully reverse this development, this could lead to a year-on-year decline in both sales and adjusted operating income'.

The group, which is led by CEO Peter Feld (pictured) is online at: www.gfk.com .