GfK Reports Tough Year, Better 4th Quarter

GfK has reported a 4.6% decline in 2009 sales to EUR 1,164m, taking into account acquisitions and currency effects. However, for the fourth quarter, the group recorded sales of EUR 324m, compared with EUR 282m in Q3.

Adjusted operating income for Q4 amounted to EUR 57m, which exceeded both the third quarter (EUR 38.2m) and the prior year period (EUR 54.5m).

Margin during the quarter rose to 17.7%; an increase of 4.2% on the third quarter and also up on fourth quarter 2008 (16.2%).

The firm puts this down to the impact of its BISS 'fitness and efficiency' program and the cost-cutting measures taken, resulting in expenses totaling EUR 16m (prior year: EUR 5.8m), including EUR 4m in staff redundancy payments.

For the full financial year 2009, acquisitions boosted sales by 2.0%, while currency effects reduced sales by 0.6%. The downturn in sales in organic terms amounted to 6.0%.

Adjusted operating income in 2009 dropped 10.2% in organic terms to EUR 147m, compared with EUR 158.7m in 2008.

All three GfK sectors increased their sales, adjusted operating income and margin in the fourth quarter of 2009, compared to the third quarter of the year.

During 2009, the Retail and Technology sector recorded organic sales growth of 4.3%, up to EUR 326m, while increasing its margin from 27.2% in 2008 to 29.4%. The acquisition of a majority stake in Etilize and the takeover of the American contact lens panel C.L.E.A.R. from Nielsen contributed to strengthening the presence of the division in North America.

Sales were down 9.4% to EUR 709m in the Custom Research sector, which the firm attributes to certain contracts not being extended, in addition to the financial and economic crisis.

In the Media sector, sales were down 2.9% on the prior year to EUR 126m, which in North America, was the result of difficult conditions in the print market. Subsidiary GfK MRI has responded to this, with a realignment, while to meet changing customer requirements and develop new business opportunities, the sector has also launched the start-up phase for the product AdMeasure.

'On the assumption of a tangible improvement in economic conditions and a further upturn in its operating activities, GfK expects sales to increase by approximately 3% in financial year 2010,' the firm said in a statement. 'All three sectors will contribute to this with positive organic sales growth. GfK is expecting the margin, that is the ratio of adjusted operating income to sales, to rise up to 13% for 2010 as a whole.'

Separately, the Supervisory Board of GfK SE has extended the contract of Management Board member Debra Pruent, who is co-responsible for the Custom Research sector, by five years.

Web site: 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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