GfK achieves organic growth of almost one percent in financial year 2013 and a higher margin

•   gfkAnnual sales rise of 0.8 percent in organic terms on previous year
•    Negative currency effects reduce sales by 1.3 percent in total to approx. €1,495 million
•    Adjusted operating income increased to approx. €190 million (previous year: €187.4 million)
•    Margin up to 12.7 percent (previous year: 12.4 percent)

Nuremberg, 31 January 2014 – The GfK Group achieved an increase in its margin and income in financial year 2013, as well as recording slight sales growth in organic terms. Based on the preliminary figures, sales were up by 0.8 percent in organic terms. However, the strong euro exchange rate produced an overall decrease in sales of 1.3 percent to approx. €1,495 million. Despite the currency effects, adjusted operating income rose by 1.5 percent to €190 million, producing a higher margin of 12.7 percent.

Based on the preliminary figures, the company achieved sales of around €1,495 million after a figure of €1,514.7 million in the previous year. Currency effects impacted heavily to reduce sales by 2.8 percent. In organic terms, sales growth of 0.8 percent was recorded.

Adjusted operating income was up 1.5 percent, despite negative currency effects of 4.1 percent. The organic growth rate therefore amounted to 5.4 percent. Following the margin of 12.4 percent in the previous year, the 2013 margin is set to stand at 12.7 percent. This confirms the success of the Group’s ongoing restructuring.

GfK remains on track with the implementation of its Own the Future corporate strategy for the further globalization of business and continued expansion of its digital business model. For example, two major contracts for carrying out TV research in Brazil and Saudi Arabia were signed in the past 6 weeks, both with a term of five years.

Strong sales growth in high-margin business

Organic growth resulted from the high-margin Consumer Choices sector, where sales before currency effects and acquisitions were increased by 3.7 percent. The margin was up from 23.1 percent to 23.8 percent. This continues the positive trend of previous years. The Consumer Experiences sector is currently in a phase of realignment aimed at increasing this business sector’s profitability. Although sector sales were down by 1.3 percent in organic terms following the measures taken in this context, Consumer Experiences achieved an increase in its margin from 6.5 percent to 6.7 percent.

The positive trend in the margins of both sectors resulted in a rise in the margin at Group level from 12.4 percent to 12.7 percent.

Sales in the Other business unit amounted to approximately €6 million during the reporting period (2012: €5.3 million).

Regional sales trends

The growth regions of Asia and the Pacific, Latin America and Central and Eastern Europe/META once again recorded a strong trend in business. However, the good level of organic growth in the regions Asia and the Pacific as well as Latin America was offset by negative currency effects of a similar amount. Consequently, significant total growth was recorded solely by the region Central Europe/META. In Northern Europe, sales were down by 1.1 percent in organic terms. In the countries of Southern and Western Europe that continue to be affected by crisis, the situation had eased somewhat by year-end. The decrease in sales in organic terms, which amounted to 4.4 percent after the first three quarters of the year, was mitigated to 3.6 percent for the full year. North America, another region which recorded a decline in sales of 3.6 percent at the end of the first nine months of 2013, closed the year with a strong fourth quarter and slowed the downward trend in sales, reducing it right down to only 0.3 percent for the full year.

 

Balance sheet press conference and full annual financial statements

GfK will publish its full annual financial statements and the outlook for 2014 on 12 March 2014 at 10:00hrs as part of a balance sheet press conference held in Nuremberg, Germany. From 15:00hrs onwards, the figures will be presented to analysts and investors during a conference call.

Provisional financial calendar

12 March 2014    Balance sheet press conference, Nuremberg
15 May 2014    Quarterly report as at 31 March
27 May 2014    Annual General Meeting, Nuremberg
13 August 2014    Half-year report as at 30 June
12 November 2014    Quarterly report as at 30 September

About GfK

GfK is one of the world’s largest research companies, with almost 13,000 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

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