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GfK Posts 5.5% Organic Growth
GfK has reported an increase in income of EUR 58.4m to EUR 1,220.4m for the year 2008, reflecting organic growth of 5.5%.
For the year, adjusted operating income rose to EUR 158.7m, while consolidated total income grew 4.0% to EUR 82.0m.
The Group's Custom Research business division generated more than half of total sales; an increase of 1.3% to EUR 782.8m. Organic growth accounted for 2.4% with acquisitions contributing 2.6% to the increase.
However, the segment generated operating income totalling EUR 56.1m, which is 15.3% down on 2007. The decrease is attributed to regional differences in the healthcare business in the US and UK and a decline in the automotive segment.
The Retail and Technology division ended 2008 successfully, having increased sales by 16.6% to EUR 304.1m. Compared with the prior year, organic growth was up 2.4% to 14.0%. The margin of 27.2% achieved by the sector was 'markedly above' the previous year's level of 25.8%.
Sales for the Media division totalled EUR 130.1m, up 4.5%r. Income was down to EUR 23.8m from EUR 25.7m the previous year. Organic growth amounted to -4.0%, while currency effects served to reduce income growth by 3.4%.
For the remaining areas of the company, sales were down EUR 0.2m to EUR 3.5m.
Higher personnel and service costs and increased rentals resulted in an income deficit running at the anticipated level of EUR 3.7m in 2008.
In a statement, the firm said that 2009 is set to be a difficult year which is likely to present the market research industry with a dual challenge: the financial and economic crisis, and increased price pressure from customers.
However, the group is confident in its outlook for the coming year: 'In this environment, with its global presence and innovative products, GfK is well positioned. The group has a stable panel business which is well protected by the very high entry barriers for competitors. At times of uncertainty concerning the future recovery of consumer confidence, market research is essential. Beyond this, GfK has a sound financial base, solid foundations and a clear corporate strategy.'
Last week, GfK announced that Christian Weller von Ahlefeld, CFO and Human Resources Director of GfK SE, will leave the company at the end of the year to devote his time to 'new professional challenges'.
Web site: www.gfk.com .
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