Good start for Cadbury despite tough market

Sweets and drinks maker Cadbury Schweppes said it had made a good start to the year today, despite a tough UK market and the impact of rising oil prices.

London-based Cadbury said revenues growth in 2006 was running at near the top end of its expectations and that the majority of its businesses had performed well since the start of the year.

However, it said revenues and profits at its UK business Cadbury Trebor Bassett had been impacted by a weak market and increased levels of discounting required to clear excess stock following the introduction of a new IT system.

Cadbury has three manufacturing outlets in Ireland - in Coolock, Dun Laoghaire and Kerry. Cadbury Ireland employs about 1,600 people.

Cadbury said there were signs of improvement in the UK in recent weeks, helped by a number of new product launches. Organic chocolate brand Green & Black’s continued to perform strongly with further increases in distribution following its acquisition by Cadbury in May 2005.

Chief executive Todd Stitzer said the company as a whole expected further growth in margins this year, but warned that the improvement may not meet its own targets because of continuing rises in oil costs.

He added: “Overall, we have made a good start to 2006. Most of our key businesses are showing healthy growth and we have made further share gains in a number of markets.”