NEWS8 August 2016

GfK adjusts 2016 guidance following disappointing first half

Europe Financials News

GERMANY — GfK’s results for the first six months of 2016 are below prior years’ figures for the same period, with preliminary organic sales growth at -1.5%.  

The AOI margin (adjusted operating income in relation to sales) is down from 9.5% to 8.2%. Therefore, the company says, "it is no longer likely that sales growth of the group will outperform the market and that the AOI margin will considerably improve as compared to the prior year". 

In the first half of 2016, sales in the consumer experiences sector fell short of the company’s expectations, and resource and cost reduction measures were unable to fully offset the resulting AOI decline.

As a result of this, and a reduced outlook for the consumer experiences sector, GfK is to "book a goodwill impairment of approximately €139m in the second quarter". 

The half year report will be published on August 12.