Daily Research News Online no. 21325 - Flat Six Months for GfK

Flat Six Months for GfK

August 14 2015

GfK has reported organic growth of just 0.3% in the first half of 2015. Reported sales climbed 7.1% to EUR 747.2m, but almost all this increase resulted from the weak Euro. Adjusted operating income rose 3.7% to EUR 71.2m, and CEO Matthias Hartmann sales should pick up in the second half.

Flat Six Months for GfK EBITDA, perhaps the best measure of profit, fell from EUR 55.5m to EUR 53.3m.

In geographical terms, all regions except for Northern Europe showed organic growth in the first six months, with Latin America, Asia and the Pacific the strongest.

GfK now divides its business into two major sectors, Consumer Experiences and Consumer Choices. In the former sales declined in organic terms by 0.7%, the reported figure being EUR 421.4m, 'though the company says sales decreases 'were deliberately accepted during the realignment process', with stabilisation a key aim. The share of sales from 'standardized' products has risen to 43% and more data is being collected digitally. Margin has risen by 0.4 percentage points in the 6 months, to 5.1 percent, and GfK says the division's order book 'points to a further stabilization of sales in the second half of the year'.

GfK Group: Key figures
In EUR million	Q2 2014	Q2 2015	Change in percent	H1 2014	H1 2015	Change in percent
Sales	363.0	384.8	6.0	697.9	747.2	7.1
EBITDA	55.5	53.3	-3.9	90.1	89.5	-0.7
Adjusted operating income (AOI)	45.0	43.9	-2.6	68.6	71.2	3.7
Margin in percent *	12.4	11.4	-	9.8	9.5	-
Operating income	39.0	38.4	-1.4	58.3	58.1	-0.4
EBIT	40.0	37.9	-5.3	60.2	58.7	-2.4
Other financial income / expenses	-7.9	-3.3	58.8	-12.5	-9.8	21.7
Consolidated total income	20.8	19.7	-5.4	30.8	28.9	-6.3
Cash flow from operating activities	39.3	12.4	-68.4	57.6	31.4	-45.5
Earnings per share in EUR	0.48	0.46	-4.2	0.67	0.63	-6.0
* Adjusted operating income in relation to sales

Consumer Choices fared better, with sales of EUR 324.2m representing 1.8% organic growth. Margin was down slightly but still very healthy at 18.3% (H1 2014 19.4%), with the slight fall the result of start-up costs for audience measurement contracts in Brazil and Saudi Arabia - these should contribute to sales growth in the fourth quarter. Multi-year audience measurement contract wins in Singapore, Sweden and Poland also provided a boost, and GfK reports that its television, radio and online audience measurement 'is now active on all continents'.

Hartmann comments: 'We achieved slight organic growth in the first six months and improved our adjusted operating income. We are expecting a pick-up in sales in the second half of the year, in particular from large audience measurement contracts that we have already won. We remain firm in expecting to reach our guidance this year'. GfK reiterated its guidance for the full year, expecting moderate organic growth and a margin of between 12.4 and 12.8 percent.

Web site: www.gfk.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.