Nuremberg, 14 August 2013 – The GfK Group achieved growth in organic terms of 1.7 percent in the first half of 2013 and posted sales totaling €728.6 million. The second quarter was particularly profitable, with adjusted operating income up by 15.7 percent in organic terms. For 2013 as a whole, GfK expects organic sales growth of up to 3 percent and therefore to exceed industry growth, as well as a margin between 12.4 percent and 13 percent.
GfK continued to make every effort in driving forward its new Own the Future corporate strategy in the first half of 2013. In the quarter ended, the transformation of the Group based on the new business model, which is geared to furthering globalization and digitization, focused on the continuing set-up of global centers to increase efficiency in the future as well as the ongoing consolidation of the current heterogeneous systems environment.
Trends in the sectors
In the first six months of 2013, both sectors – Consumer Experiences and Consumer Choices – achieved a sales increase. The Consumer Experiences sector achieved a minor sales increase of 0.5 percent, returning to a positive growth rate. In view of the higher number of orders recorded at the end of the first quarter and beginning of the second quarter, better utilization of human resources contributed to higher income.
At 2.4 percent, growth in the Consumer Choices sector was considerably stronger than in Consumer Experiences. Currency effects had a negative impact of 1.5 percentage points. Organic growth in the first six months of 2013 amounted to 3.8 percent and in the second quarter to a considerable 5.2 percent. The sector’s strong performance in Retail Tracking provides a stable basis for the second half of 2013.
Regional trends
GfK achieved double-digit sales growth in organic terms in the regions CENTRAL EASTERN EUROPE/META (Middle East, Turkey and Africa) and LATIN AMERICA as well as in ASIA AND THE PACIFIC.
NORTHERN EUROPE, which recorded the highest sales overall, achieved organic sales growth of 2.0 percent in the first six months of 2013 and of as much as 5.2 percent in the second quarter of the year.
In line with expectations, growth in SOUTHERN and WESTERN EUROPE was flat. Business in NORTH AMERICA was down 3.9 percent in organic terms.
Key indicators
Compared with the first half of 2012, SALES were up by 1.2 percent in total to €728.6 million. Organic growth amounted to 1.7 percentage points. Acquisitions pushed up sales by a further percentage point, whereas currency effects impacted negatively with 1.5 percentage points.
ADJUSTED OPERATING INCOME totaled €76.4 million in the first six months of 2013, which represents a decrease of 5.9 percent on the same figure for the previous year (€81.2 million).
The GfK Group MARGIN was 10.5 percent after 11.3 percent in the first half of 2012. Viewed in isolation for the second quarter of 2013, the margin of 14.0 percent significantly exceeded the previous year’s figure of 12.7 percent.
CASH FLOW FROM OPERATING ACTIVITIES for the first six months of 2013 improved by €5.5 million to €30.7 million compared with the same period in the previous year. This was achieved through a considerable reduction in working capital of €17.4 million.
Outlook
In view of the positive trend in the second quarter of this year, the Management Board remains confident that GfK will once again outperform the market research industry this year and be in a position to gain market shares. In 2013, GfK will make every effort in driving forward the optimization of the Group’s structure and implementation of its strategy. This is likely to impact favorably on the future business trend. Provided that the economic situation will not worsen, GfK anticipates organic growth of up to 3 percent in 2013 (previous guidance: between 3 percent and 4 percent). Despite the scheduled expenses for developing new business and to cover exchange rate risks, GfK aims to achieve a profit margin (adjusted operating income in relation to sales) of 12.4 percent to 13 percent in the current financial year (previous forecast: around 13 percent).
Matthias Hartmann, CEO of GfK SE, explained: “As we expected, our sales and income were significantly up in the second quarter of 2013. In a difficult economic environment and during a major ongoing Group transformation, this has brought us a big step closer to our aim of exceeding the 2012 figures.”
The GfK Management Board had presented long-term sales and income targets in the context of the new Own the Future corporate strategy. In view of the considerable slowdown in market growth and the Group’s adapted and less extensive acquisition strategy to focus on digital business, a revision of the original forecast was resolved. GfK still aims to outperform the market by 1 to 2 percentage points in organic terms and therefore gain market shares. Irrespective of the ongoing investment in the Group transformation, the profit margin is to be increased to between 14 percent and 15 percent (end of 2015).
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 €1.51billion.
To find out more, visit www.gfk.com