Cadbury’s expects top end revenue growth

Source: Food and Drink Digital

Date :19/06/2008 09:21:50

Cadbury plc today, June 19, reported strong first half revenue momentum as it expects growth to be in the region of four to six percent.

The confectioner will see growth across all categories and double-digit growth in emerging markets, with second quarter growth higher than the seven percent like-for-like growth reported for the first quarter.

“We’re off to a strong start as a focused confectionery business and expect first half revenues above our goal range and good progress on margins,” CEO Todd Stitzer said.

Input costs

The firm has implemented price increases across the majority of its markets which are recovering significant increases in input costs. It expects commodity cost increases to remain in the five to six percent range.

Margins are also ahead, despite Cadbury’s increased investment in marketing, having benefited from positive product mix and the ‘Vision into Action’ cost reduction initiatives previously announced.

Stitzer predicted: “Despite the challenging economic outlook and further increases in input costs in the second half, we are confident of a successful outcome for 2008.”