Cadbury profits rise after UK boost

Sweet-toothed consumers in the UK and a fall in advertising costs helped Dairy Milk owner Cadbury report a rise in half-year profits today.

Revenues rose 4% on a constant currency basis after growth in the UK and emerging markets offset difficult trading conditions in Europe.

Margins were also higher due to ongoing cost cuts and the impact of the advertising recession on the company’s marketing costs, which fell to 10.7% as a percentage of sales – against 11.6% a year earlier.

Cadbury reported underlying profits before tax of £262m (€303m) for the six months to June, an increase of 11% at constant currency rates on a year earlier.

Chief executive Todd Stitzer said: “We made good progress in the first half in challenging trading conditions.”