GfK Achieves 'Sound' First Quarter Figures

GfK has described its Q1 results as 'sound', with organic growth in sales up 5.1% to EUR 268.1m and consolidated total income rising almost 21% to EUR 12.5m.

Acquisitions contributed 2.2% to growth, while currency effects arising mainly from the revaluation of the Euro against the US dollar, reduced sales by 4.7%. With these two factors, reported sales increased by 2.6%.

For the first three months, operating income was up 3.9% to EUR 20.9m, and adjusted operating income was EUR 23.0m, compared with EUR 24.8m, a figure which GfK puts down to 'seasonal effects'.

The firm says its order books at the end of April were 'excellent', with 61.8% of expected sales for the year 2008 already posted - this compares with 60.6% a year ago.

Since the beginning of this year, the GfK Group has refocused its organizational structure on the three sectors of Custom Research, Retail and Technology, and Media. All sectors achieved organic growth in sales compared with the same period in the prior year.

Compared with Q1 2007, the Custom Research sector saw organic sales growth of 2.6%, with the acquisitions ofBlue Moon in Australia and Bilesim International in Turkey boosting growth by a further 2.7%. Currency effects reduced sales by 5.4%, and income amounted to EUR 5.6m representing a decrease of EUR 3.2m on the same quarter the prior year.

Retail & Technology achieved a sales increase of 11.4% to EUR 63.5m, generated exclusively by organic sales growth. Acquisitions made a 2.0% contribution to sales growth, while currency effects reduced sales by 2.1%.Income rose 13.3% to EUR 12.7m. At 20.0%, the division managed the highest margin of all the sectors.

The Media team achieved 8.0% organic growth in sales, although currency effects reduced sales by 5.8%, with the division consequently achieving an increase in sales totalling 2.2% to EUR 30.2m. Income was EUR 5.4m, which was almost at the prior year's level of EUR 5.6m.

GfK also achieved significant double-digit growth in organic terms in Central and Eastern Europe, Latin America as well as Asia and the Pacific.

Given the current merger discussions with TNS the firm says it is not confirming, restating or updating the sector targets or certain other forward-looking statements published in its 2007 Annual Report.

However, on the strength of its portfolio, GfK is confident that it will perform well, even in the face of the slowdown in the global economy, and expects to increase sales in the financial year by more than 5.5% on an organic basis.

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.