Cadbury sales melted by heatwave

Cadbury Schweppes has signalled it still faces sticky trading conditions after confectionery sales suffered in the Europe-wide heatwave.

The chocolate-to-soft drinks maker stuck by earlier forecasts that trading in its financial year to the end of December would be similar to the first half.

In July, Cadbury said pre-tax profits in the six month period fell 5% amid weak trading conditions, particularly in the US drinks market.

That sector remained weak, Cadbury said in a statement today, as it also confirmed fears that hot weather in Europe had had "some adverse impact".

Shares in Cadbury were almost 3% or 9.75p lower at 378p following the update.

Chief executive Todd Stitzer has already warned that 2003 would be a year of transition for Cadbury following the acquisition of confectionery group Adams for £2.7bn (€3.9m) in March.

Following the deal, Cadbury said that plans to refinance $6.1bn (€8.8bn) of bank facilities remained on course, with at least $1.6bn (€2.3bn) expected to be refinanced in 2003.

Cadbury's brands include Dr Pepper, Snapple, Trebor and Bassett. With the addition of Adams and its brands Halls, Trident, Dentyne and Bubbas bubble gum, the company now employs 55,000 people worldwide.