UK Boost Aids Cadbury Performance
A better second quarter was reported for gum and candy, particularly in the US. Growth in the UK, Pacific and key emerging markets more than offset difficult trading in Europe.
29 Jul 2009 Cadbury has reported a good first half performance with revenue growth of 4% in constant currency; up 13% in reported currency to £2.8bn. There was strong growth in chocolate, up 10%, led by excellent market share gains in the UK and very good growth in emerging markets, particularly India and South Africa. Meanwhile a better second quarter was reported for gum and candy, particularly in the US. Growth in the UK, Pacific and key emerging markets more than offset difficult trading in Europe.
Todd Stitzer, Cadbury’s CEO said: “We made good progress in the first half in challenging trading conditions. A strong chocolate performance and good growth in emerging markets more than offset a slow start in North America and continued softness in Europe. At the same time, we significantly improved our trading margin whilst maintaining our investment in marketing and product innovation.”
“Looking forward for the year as a whole, given the continuing economic uncertainty, we reconfirm our guidance to deliver revenue growth around the lower end of our 4-6% goal range. In addition, we now expect to deliver a full year margin increase of between 80-100 basis points in constant currency.”
