Cadbury-Schweppes sees 12% rise in profits

Chocolate-to-fizzy drinks group Cadbury Schweppes today reported a 12% rise in profits, although its business in the UK turned in weaker results.

The group, which makes Dairy Milk chocolate and Dr Pepper drinks, said underlying pre-tax profits for the year to December 30 rose from £792m (€1.3m) to £886m (€1.45m) while turnover rose 21% to £5.52 billion.

Chief executive John Sunderland said 2001 had been an ‘‘excellent year’’.

In the UK and Canada, disruption caused by integrating its chocolate and sugar businesses, combined with weaker trading environments, caused weaker results.

The integration has seen Cadbury combine the infrastructure and systems of its Cadbury chocolate and Trebor Bassett sweets businesses, which have their main sites in Birmingham and Sheffield and employ around 6,500 staff in total.

The integration started around 18 months ago and ended last June.

Cadbury said the Trebor Bassett business, which it bought in 1989, had a slow start to 2001 as it focused on integration and profits were modestly down year-on-year.

However, Cadbury said it had a strong performance at Easter and Christmas, and its Dairy Milk bars increased volume and gained market share.