Cadbury profit rises 28%
Cadbury posts 28 per cent profit rise
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Wednesday, 30, Jul 2008 10:59
Cadbury's pre-tax profit jumped 28 per cent in the first half on strong sales in emerging markets.
The Dairy Milk maker's rise to £143 million beat market expectations and shares rose one per cent by 08:50 BST on the announcement.
Revenues in emerging markets were ahead by 13 per cent with India up 25 per cent; South Africa 16 per cent and South America 15 per cent.
Southern Europe and France saw a slowdown, but other developed countries experienced growth, Cadbury said.
Roger Carr, Cadbury's chairman, said: "Against a background of more challenging economic conditions, we will take whatever measures are necessary in costs, prices, organisation structure and business portfolio to underpin and deliver the performance commitments we have made for 2008 and beyond."
The company said it was confident of a successful year, with revenue growth at the top end of its four to six per cent forecast.
"Despite difficult economic conditions, we are committed to deliver mid-teens margins by 2011," Todd Stitzer, Cadbury's chief executive, added.
However, the company is expecting commodity costs to continue upwards, which it will try to offset with cost-cutting.
The company is the world's largest confectionery group, although it will take second place after Mars completes its takeover of Wrigley.
The interim dividend has increased by six per cent to 5.3p.