Cadbury on track as third quater sales up
Confectionery giant Cadbury reported a 6 percent rise in third-quarter underlying sales after a 7.3 percent first-half rise and said it was on track to meet its annual sales and margin goals.
Cadbury 2007 profits dipThe London-based group which makes Dairy Milk chocolate, Trident gum and Halls cough drops also announced a further 250 job cuts, and added it expected commodity and input costs to rise between 6-8 percent in 2009 after an estimated rise of 5-6 percent for 2008.
Cadbury, which is facing a slowdown in world markets, higher cocoa prices and the threat from a new industry leader Mars-Wrigley, said its third-quarter performance meant underlying revenues for the first nine months of the year were 7 percent ahead.
The group reiterated full-year sales growth would be around the top of its medium-term 4-6 percent range while it still aims for a mid-teens percentage operating margin by 2011.
Cadbury, which spun off its North American beverage business Dr Pepper Snapple in May, lost its crown as the world's largest confectionery group when U.S.-based Mars completed its takeover of chewing gum group Wrigley earlier this month. Back in July, Cadbury warned of possible further cost cuts and job losses due an uncertain economic outlook and further rises in input costs into 2009. This came after it announced in June 2007 that it would cut 7,500 jobs worldwide and close ten plants.
Cadbury shares have dipped sharply since hitting 673 pence on Sept 9 to close at 498-3/4p on Monday, and despite sharp stock market falls the shares have underperformed the FTSE 100 by three percent and DJ Euro food and beverage industry by 8 percent.
(Reporting by David Jones; Editing by Chris Wickham)
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