Cadbury confirms strong start to 2008
In a trading update, chocolate-maker Cadbury - which demerged from its Dr Pepper Snapple Group beverages business last month – said it had enjoyed strong first half revenue and expected its growth for the period to be above the 6% that was at the top of its goal range. Higher prices were recovering increases in input costs and benefits were emerging from cost savings initiatives.
CEO Todd Stitzer: 'We're off to a strong start as a focused confectionery business and expect first half revenues above our goal range and good progress on margins. These results will demonstrate the strength of our total confectionery platform, the benefits of the significant investments made in recent years and the potential of our business. Despite the challenging economic outlook and further increases in input costs in the second half, we are confident of a successful outcome for 2008.”
The company said margins in the first half would benefit from previously announced downsizing of central and regional functions and outsourcing non-core activities.
In Britain some less profitable promotions has been more than offset by good growth in core brands, including Cadbury Dairy Milk, Cadbury added.
