Nuremberg, 10 May 2013 – According to preliminary figures, GfK increased sales by almost 1 percent year-on-year to €348 million in the first quarter of 2013. Organic growth was 0.6 percent. Adjusted operating income of around €23 million (previous year: €33.5 million) and the margin of 6.6 percent (previous year: 9.7 percent) did not match the strong results for the first quarter of 2012. Business development in March this year was considerably more positive. GfK confirms its targets for the year as a whole.
Following a weak start in the first two months of the year, both income and the order situation improved significantly in March 2013. Since March, the level of incoming orders has developed well. On this basis, GfK confirms its annual targets and anticipates that the modest sales increase at the start of the year will be offset by significantly sharper growth in the subsequent quarters. For 2013 as a whole, GfK expects organic growth of between 3 percent and 4 percent, with a profit margin (adjusted operating income in relation to sales) of around 13 percent.
New corporate strategy generates growth potential
As part of the new Own the Future corporate strategy, synergy resources such as global service centers were established in the first quarter. This resulted in increased cost in the short term. However, in the medium and long term, this will make it possible to enhance the competitiveness of GfK and will improve growth potential. A uniform global CRM system will optimize client management and has already been in operation in a number of countries since the beginning of this year. Regional and local organizations have been geared to marketing new global core products. In product management, new processes have been implemented to ensure further standardization in the range of product and services. These measures will generate potential for future sales growth while also improving cost effectiveness.
In the first quarter of 2013, the Consumer Experiences sector achieved a slight sales increase of 0.6 percent on the previous year’s figure to around €207 million. Following a subdued start in January and February, the level of incoming orders rose substantially in March. However, as a result of this delay in orders received, income in the first three months of the year was down from €7.9 million to €2.4 million. The first quarter margin of the Consumer Experiences sector only amounted to 1.2 percent compared with 3.8 percent in the same period of the previous year. The margin improved considerably in March and was up 1.7 percentage points year-on-year.
In comparison with the previous year’s quarter, sales in the Consumer Choices sector rose by 1.4 percent to around €140 million. Positive momentum came from the Consumer Electronics and Audience Measurement segments. The income of the Consumer Choices sector decreased by €4.2 million to €23.0 million, compared with the same quarter in the previous year. The sector’s margin was 16.5 percent and therefore below the previous year’s figure of 19.7 percent. In addition to the delayed conclusion of major orders, which meant that those profits were not recorded in the first quarter of 2013, expenses in the development of new products also had an impact on income. The sales potential of these product innovations will only take effect over the course of the year.
As announced, detailed results on the developments in the first quarter of the year will be published on 15 May 2013.
About GfK
GfK is one of the world’s largest research companies, with more than 12,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.
To find out more, visit www.gfk.com
Provisional key dates in the financial calendar
15 May 2013 Quarterly report as at 31 March
17 May 2013 Annual General Meeting, Fürth, Germany
14 August 2013 Half-year report as at 30 June
14 November 2013 Nine-month report as at 30 September
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Ad-hoc-release
GfK confirms outlook for 2013 – adjusted operating income in the first quarter down on previous year
Nuremberg, 10 May 2013 – According to preliminary figures, GfK in-creased sales by 0.8 percent year-on-year to €348 million in the first quarter of 2013. Organic growth was 0.6 percent. Adjusted operating income amounted to around €23 million and the margin (adjusted operating income in relation to sales) was 6.6 percent. Both figures are therefore below the previous year’s values (€33.5 million and 9.7 percent, respectively).
The company anticipates that considerably stronger growth in subsequent quarters will offset the weak sales increase at the start of the year. Since March the level of incoming orders has developed well. The forecast for the year has therefore been confirmed.
For 2013, GfK expects an organic increase in sales of between 3 percent and 4 percent and a margin of around 13 percent.
The quarterly results with detailed commentary will be published on 15 May 2013.