Cadbury reports good performance

Third quarter results reveal that revenues in Europe were 4% up. And the company expects strong profit growth to continue for the rest of the year…

Overall, gum performed well in difficult market conditions, driven by market share gains in France, northern Europe and Russia. Integration of the recent Intergum acquisition in Turkey has progressed well with major changes in route to market activities now starting to benefit market share. The overall rate of growth in Europe was held back by the market slow down.
In Britain, Ireland, the Middle East and Africa (BIMA) revenues grew by 10% despite lapping strong prior year comparatives. Performance reflected strongly in Britain and emerging markets, particularly in South Africa where revenue growth was 22%. In Britain, growth of 11% benefited from a candy boom, which in the same quarter last year was adversely affected by floods in the Sheffield factory. Key product launches included Cadbury Dairy Milk bars – Cranberry & Granola and Apricot Crumble – and the relaunch of Wispa.
A single state-of-the-art science and technology centre focussing on gum and candy will be established in Switzerland. Organisational changes and management structure will streamline the business. The four regional operational structure will be replaced by seven business units which will report directly to Todd Stitzer, CEO. The global chocolate, gum and candy categories will be strengthened for development.
Todd Stitzer, chief executive officer, said,“The good third quarter performance was in line with our expectations. Our new streamlined organisation, together with additional cost reduction initiatives, will increase the focus on implementing our strategic plans and underpin delivery of our main targets. Despite weaker economic conditions, we expect strong profit growth for the year and reconfirm the revenue and margin guidance we gave in July.