Cadbury reports strong sales growth
Cadbury said that revenue growth was ahead of goal ranges at 6.3% (5.4% including Europe Beverages). The company reported 6% confectionery growth.
21/02/06 Cadbury Schweppes has seen its profits top market forecasts, thanks to sales growth at a 10-year high and the disposal of European and US businesses.
Cadbury said that revenue growth was ahead of goal ranges at 6.3% (5.4% including Europe Beverages). The company reported 6% confectionery growth: Trident +21%; Halls +9%; Cadbury Dairy Milk +7% and 6% beverage growth: US carbonates outperform, driven by Dr Pepper. Adams performance strong and growing ahead of the acquisition plan.
Todd Stitzer, Chief Executive Officer said: "2005 was an excellent year with innovation driving success in both our confectionery and beverage businesses. Revenue growth at 6% is the best the Group has seen in over a decade and shows that our strategy is delivering exciting products for consumers and strong results for our shareowners."
Meanwhile Cadbury said that it has increased its shareholding in Cadbury Nigeria from 46.4% to 50.02% at a total cost of £19.7 million.
Cadbury Nigeria was incorporated in 1965 and is the market leader in sugar confectionery, gum and food beverages in Nigeria with strong market shares across all three categories. Nigeria is an important growth market for the Group within its fast-growing operations in Africa and the Middle East. The move to a majority holding will allow Cadbury Nigeria to become a key production hub for the Group in West Africa, and will enhance Cadbury Nigeria’s capabilities through better access to Group technology and expertise.
As a result of Cadbury Schweppes achieving a majority holding in Cadbury Nigeria, Cadbury Nigeria will be consolidated in the group accounts of Cadbury Schweppes, having previously been accounted for as an associate.
In the year ended 1 January 2006, Cadbury Nigeria’s net sales were £102 million. Underlying operating profit was £20 million. Its contribution to the Group’s share of results in associates was £5 million. (All numbers are pro-forma, excluding a licensed business which was terminated in November 2005).
