Cadbury endures difficult summer in Europe

Confectionery group Cadbury Schweppes today said it was expecting full-year profits to be at the lower end of expectations after a difficult summer for its European drinks business.

The company said its drinks operations in France and Spain, which include Orangina, had felt the impact of wet weather in the last few months in common with the rest of the industry.

A spokesman said its profits forecast remained in line with guidance given earlier in the year.

But he added: “The European drinks market has been weak because we have had a very poor summer, so the comparatives with last year’s hot summer are quite difficult.”

Cadbury, which makes Dairy Milk, stressed that its global confectionery businesses had continued to trade well.

The group said in a market update: “Although a significant proportion of our sales and profits are earned in the final three months of the year, we continue to expect to deliver financial results within our goal ranges, but toward the lower end.”