GfK Reports Return to Growth

GfK claims to be back on track with an increase in both Q1 sales and income. During the first quarter of 2010, the global group reported a 6.1% sales increase to EUR 280.9m from Q1 2009, up 5.2% in organic terms. Income rose 71.2% to EUR 25.3m during the period.

The firm says that these figures have outstripped those for the same quarter in 2008, before the start of the global financial and economic crisis.

GfK's recovery was apparent at the end of 2009: this February, the firm reported a 4.6% decline in overall 2009 sales to EUR 1,164m, but fourth quarter sales increased to EUR 324m from EUR 282m in Q3.

The group says the 'strong start' to 2010 is partly due to targeted growth in emerging countries, and adds that its 'sustained growth' in these regions confirms the approach of 'making acquisitions as a basis for strong organic growth'.

By sector, Custom Research generated a 4.6% increase in sales to EUR 167.2m, with organic sales growth accounting for 2.6 percentage points. After five quarters when the sector recorded sales declines in organic terms, GfK notes that Custom Research is now 'back on course for growth'.

The Retail and Technology division reported sales of EUR 79.6m, which represents an increase of EUR 7.1m and makes it the sector with the highest income level in the group. In organic terms, the sector grew 27.3% during the quarter.

In the first three months of the year, the Media sector grew by 4.3%, generating sales of EUR 32.8m, with organic sales growth of 5.9%.

This quarter, group margin climbed to 9.0%, well ahead of the prior year's margin of 5.6%. As a whole, the group's order book has already covered a total of 65.4% of the budgeted annual sales, which is up on the prior year's figure of 63.6%.

For the financial year, GfK is predicting a 3% rise in sales, with margin of up to 13% on adjusted operating income.

'As long as the economic environment continues to be spared major disruption, the Management Board believes that with the measures taken, GfK is well equipped to outperform the market research sector in terms of organic growth, also in the medium term, and to maintain at least the present level of income quality,' the firm said in a statement.

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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