Boomtime for the GfK Group

The GfK Group has proudly announced record-breaking financial results in its sparkling set of 2000 figures. The company’s 105 units in 40 countries globally have reported a combined total revenue up 24.3% to Euro 483 million for the year. These latest annual results represent a second year of good growth for the group.

GfK’s financials are also a clear improvement on the original forecast results. Better than expected performance meant that GfK revised their estimates up by a total of Euro 20 million. At the same time, the group’s growth in total performance amounted to nearly 25%, with 8% attributable to organic growth, 16% to the inclusion of new acquisitions, and 1% accounted for by exchange rate gains. In effect, excluding contracts with a fixed order volume, the group’s organic growth constituted some 9% in consequence.

The trend towards internationalization has moved the overseas performance from 18% of the total revenue to 63% over the last decade. In the year 2000 alone, internationalization was reflected by GfK’s 13 overseas acquisitions and increased shareholdings. The other key trend to be noted has been the growth of the group’s online research services. Online business amounted to Euro 10.3 million for 2000, and GfK is anticipating this line of research to more than double over 2001.

Dr. Klaus L. Wübbenhorst, Chief Executive Officer of the GfK Group, commented, "The GfK Group believes that it has a good chance of sustaining this five year cycle and regards total revenue of around one billion Euro as achievable for 2005. In addition to the increased volume of business, EBIT, including income from participations, will also clearly rise to more than Euro 100 million, to break through the ten per cent barrier by 2005."

The coming year is viewed with continued optimism. GfK is apparently enjoying order books running at 39% of the total performance forecast already (whereas in the previous year, this figure was 37%). Hence the group is likely to achieve a total 2001 revenue in excess of Euro 550 million, an increase of more than 15%. It should also be possible for GfK to outperform the organic growth of the sector over the year, a figure forecast at between 6-8 %.