GfK Reports Sales Decline

GfK has reported a 1.6% organic decline in sales for the first half of 2014, to EUR 697.9m, magnified to 4.2% by currency effects - but says that it is now seeing the positive effects of the 'strategic realignment' plan it has been pursuing.

During the first half of the year, adjusted operating income totalled EUR 68.6m - a 10.5% decline on the same period the previous year - while EBITDA fell by EUR 5.7m to EUR 90.1m.

By division, the firm's 'Consumer Choices' business line saw a 1.2% increase in sales in H1, while its 'Consumer Experiences' sector reported a 7.8% decrease in sales to EUR 379.2m, resulting from the ongoing 'strategic realignment of the product portfolio, a focus on high-margin core business, and the loss of a particular client contract'.

By region, Central Eastern Europe/META (Middle East, Turkey and Africa) achieved a 2.3% sales increase to EUR 63.9m, while sales dropped 6.6% to EUR 278.0m in Northern Europe, but rose 2.7% to EUR 131.9m in Southern and Western Europe. The AsiaPac region reported 2.1% sales growth to EUR 75.8m, but in Latin America currency effects drove a 12.5% decline, to EUR 27.3m.

CEO Matthias Hartmann (pictured) said that the figures for the first half of this year paint a mixed picture, having been affected by the 'weak market environment, marked currency effects and a one-off effect in the comparative figures'.

In a statement, the Board said it did not expect stronger growth in the two subsequent quarters to compensate fully for the 'subdued sales performance' in the first half of the year. As a result, the firm is anticipating annual sales for 2014 to be at the prior year level of EUR 1.49bn, or slightly lower, and it is not expecting any organic growth.

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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