NEWS31 January 2014

GfK sales dip 1.3% on strong euro exchange rate

Europe Financials News

GERMANY — GfK’s 2013 sales fell 1.3% to €1.495bn as a strong euro exchange rate cancelled out organic growth of 0.8%.

However, adjusted operating income and margin both increased – the former up 1.5% to €190m and the later rising to 12.7% from 12.4% – despite negative currency effects of 4.1%.

Looking at the business by sector, GfK said: “Organic growth resulted from the high-margin Consumer Choices sector, where sales before currency effects and acquisitions increased by 3.7%. The margin was up from 23.1% to 23.8%.”

Consumer Experiences sales declined 1.3% in organic terms, the company said. Although this part of the business “is currently in a phase of realignment aimed at increasing this business sector’s profitability”, GfK noted that its margin increased from 6.5% to 6.7%.

Sales fell across northern, southern and western Europe, while revenues were largely flat in Latin America, North America and Asia Pacific. Only the central and eastern Europe and Middle East, Turkey and Africa region recorded substantial growth, of 4.6%.

Detailed results will be published on 12 March. Pictured is GfK CEO Matthias Hartmann.

@RESEARCH LIVE

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