GfK Reports Q3 Sales Decline

GfK has reported a 4% drop in sales to EUR 361.4m during the third quarter 2013, from EUR 376.7m in Q3 2012, driven by what the firm describes as the 'considerable impact' of negative currency exchange effects. Like-for-like, sales were down by around 1.5%.

Adjusted operating income climbed 12.5% to EUR 49.9m from EUR 44.3m in the third quarter last year, and EBITDA was up 9% to EUR 55.0m. By business sector, the Consumer Choices division recorded a 6.9% fall in sales to EUR 206.3m (Q3 2012: EUR 221.5m), while sales in the Consumer Experiences division fell 0.3% to EUR 153.8m.

For the first nine months of 2013, group total sales dropped 0.6% to EUR 1.090 billion from EUR 1,096 billion in the prior year period. In organic terms, revenues rose slightly - up 0.9%, compared with a figure of +1.7% in half-year results in August.

Regionally, Northern European sales fell 0.9% to EUR 441.6m, while in many countries in the Southern and Western Europe region, including Greece, Portugal and France, GfK said the busi-ness climate had been difficult, contributing to a 4.3% drop in sales in the region to EUR 199.6m.

Business in the Central Eastern Europe/META (Middle East, Turkey and Africa) region developed 'positively', with a sales increase of 6.9% to EUR 92.6m, despite negative currency effects. This growth was supported by the positive development of business in Russia.

The Latin American region also achieved 'significant growth', with sales up 5.4% to EUR 48.1m, while conversely in North America the business trend was 'weaker, with sales down 2% to EUR 192.9m. In Asia Pacific, GfK companies achieved a 1.4% increase in sales to EUR 115.0m.

For the final quarter of the year, Hartmann said the level of incoming orders 'remains satisfactory', with 96% of the annual sales required to achieve the forecast already posted or in the order book at the end of September. He added that provided that the economic situation does not worsen, the firm still anticipates organic growth of up to 3% in 2013.

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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