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Categories: Corporate Results

Cadbury Sees Strong First-Half, Shares Rise

Source: Reuters
15/05/2008

London, May 15 - British confectioner Cadbury Plc said on Thursday its first-half sales growth was expected to be above 6 percent, while its trading margin would rise 1.5 percentage points, sending its shares higher.

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The maker of Dairy Milk chocolate, Trident gum and Halls cough drops, which demerged its North American Dr Pepper Snapple Inc soft drinks business earlier this month, said first-half growth in confectionery sales would beat its 4-6 percent target range.

"Following the demerger, I am very pleased to confirm that the new company is off to a strong start, with revenues in the first half expected to be above the top end of our goal range and trading margins around 150 basis points ahead," Chairman John Sunderland said in a trading statement.

In April, the group said its first-quarter sales grew 7 percent as it held to its previous forecast that 2008 sales would be at the upper end of its 4-6 percent range and it expected "meaningful" progress in trading margins from 2007's 9.8 percent level.

Cadbury's shares had risen 4.5 percent to 676 pence by 0900 GMT, the biggest riser in the FTSE 100 index.



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