Currencies and Acquisitions Boost GfK Figures

GfK has reported 'a significant sales increase' of 9.8% to EUR 1,096.8m in the first nine months of 2012, with much of the rise however due to currency effects and acquisitions. Q3 revenue was up 11.3% to EUR 376.7m. EBITDA fell 18.5% to EUR 50.6m.

The group notes that the Latin America and Asia / Pacific regions saw double-digit organic sales growth (10.1% and 16.0% respectively over the 9 months), and said organic growth in North America and Southern and Western Europe was also higher in the third quarter (5.7% and 5.3%) - it has not given headline figures for overall organic growth. The reduced margin reflects expenses for product innovation and the development of new markets, says GfK, which cites major new contracts for a telecoms supplier in China and for Microsoft globally as successes for its new 'Own the Future' strategy.

Reductions in 9-monthly adjusted operating income (to EUR 125.8m, down 3.9%) and margin (down from 13.1% to 11.5%) resulted from 'additional costs of EUR 11.1 million for expanding and securing business' - in particular new technological systems like the Network Intelligence Solution (NIS) project in the Consumer Choices sector, and the setting up of a presence in Korea and a panel in Turkey for the Consumer Experiences sector.

In August, the firm reported a 9.1% increase in sales to EUR 720.1m for the first half of 2012, with just 1.7% organic growth (a healthy 4.2% in its Consumer Choices business off-set by a flat performance from Consumer Experiences).

CEO Matthias Hartmann notes: 'Our strategic focus on the requirements of clients with global activities is proving a success. We expand in countries that represent the future for our clients and this enables us to substantially increase sales and build up our market position in these growth markets.'

In terms of general outlook, GfK says the 'risks relating to the economic environment have increased in the course of this year' with the Euro crisis continuing and the USA facing turbulent tax policy decisions, plus signs of a slowdown in emerging markets too - this has made research clients 'less inclined to commission new orders'.

For the full financial year 2012 the group forecasts sales of c.EUR 1.5bn, 9% up on 2011's EUR 1.37bn.

Web site: www.gfk.com .