Cadbury beats revenues target

Cadbury today said “good growth” from core brands including Dairy Milk had given it an edge over the rest of the UK confectionery market.

The company added that price rises in order to recoup higher costs and strong demand in emerging markets meant overall revenues for the first half of this year were likely to exceed the 4%-to-6% target previously set by the firm.

Cadbury shares opened more than 2% higher following the trading update.

In its domestic market, Cadbury said revenues growth was likely to be ahead of the wider confectionery market, which is 2% stronger so far this year.

It said: “The exit from some less profitable promotions has been more than offset by good growth in core brands, including Cadbury Dairy Milk.”

Cadbury is now focused on chocolate, sweets and gum after spinning off its drinks arm and dropping Schweppes from its name.

Chief executive Todd Stitzer said the new-look company had got off to a strong start, although he warned Cadbury will be up against stronger comparatives in the second half of the financial year.

He said: “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 like-for-like sales growth in the second quarter of the year was likely to be modestly higher than the 7% growth reported for the first quarter.

Prices rises have been implemented across the majority of its markets, following “significant” increases in commodity costs.

Cadbury revealed in May that it had lost ground to rivals over Easter after holding back seasonal price cuts, although it banked a 3% rise in first quarter UK revenues despite the hit.

Cadbury said at the time that sales growth was being driven by a recent concerted marketing push, led by last year’s advertisement featuring a gorilla drumming to Phil Collins and more recently an ad showing racing airport trucks.

Mr Stitzer also reported good progress on margins today, despite a further increase in marketing investment.

More in this Section

Oil price falls as virus fears hit hardOil price falls as virus fears hit hard

Harcourt posts profit of €23m and reduces debtHarcourt posts profit of €23m and reduces debt

Cork Chamber wants a Minister for CitiesCork Chamber wants a Minister for Cities

Budget hotel operator EasyHotel to open Dublin property next yearBudget hotel operator EasyHotel to open Dublin property next year


Lifestyle

Food news with Joe McNameeThe Menu: Upcoming food highlights

THE health properties of tea have long been advertised. “It maketh the body active and lusty” a 1660 promotion suggested. However, before you dunk your teabag into a mug of steaming water, spare a thought for the environment. Some have polypropylene to help to seal them and it doesn’t decompose.Storm in a teacup: Top 8 loose-leaf teas

Bestselling author Isabel Allende talks to Rowena Walsh about life, grief, and why it’s never too late to fall in loveIsabel Allende: It's never too late to fall in love

Cliffs of Moher Retreat owner Michelle Moroney has written a book on finding self-worth and stepping back from our 24/7 lives. She talks to Marjorie Brennan about the need to unwindMichelle Moroney highlights the need to take stock of our lives

More From The Irish Examiner