London, July 31 - Britain's confectionery group Cadbury Plc is to review its costs which could lead to more job losses and factory closures in an uncertain economic outlook and as commodity costs rise.
"Dealing with the macro environment is scary. We are dealing with cocoa prices up 30-40 percent and oil up 50 percent from a year ago," Chief Executive Todd Stitzer told a group half-year results briefing on Wednesday.
He said the review would take "some months" and hopes to announce more details at its October trading update and then more at a December update, but would not rule out further jobs and factories going after he announced big cuts in June 2007.
Last year, Cadbury announced a 15 percent cut in both its workforce and factories involving 7,500 employees and 10-12 factories in the period up to 2011.
"The world out there is uglier and we have to adapt," Stitzer said.
Analysts said despite the poor economic outlook and higher commodity costs, Cadbury is determined to keep control on costs and maintain its current focus on improving underlying sales growth and operating profit margins.
"We are planning for 2009 to be tough, I hope I'm wrong," said Cadbury's Finance Director Ken Hanna at the briefing.