UK: Cadbury sales up as further jobs are cut

By: just-food.com | 14 October 2008

Cadbury's third-quarter sales rose 6% as a result of continued double-digit growth in emerging markets, the company said today (14 October).

The confectioner, which also announced almost 600 job cuts in its UK head office and from its Australia and New Zealand operations, said sales from its emerging markets climbed 13% during the three months to 30 September.

Sales in India and South Africa rose by more than 20%, Cadbury said.

In the UK, growth of 11% benefited from a significant recovery in candy, which in the same quarter last year was impacted by floods at the company's factory in Sheffield. Key product launches included the new range of Cadbury Dairy Milk bars and the relaunch of Wispa made an impact.

CEO Todd Stitzer 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 margin targets."

Cadbury's third-quarter sales slowed from the 7% growth it saw in the first half of its fiscal year but Stitzer remained upbeat on the company's outlook.

"Despite weaker economic conditions, we expect strong profit growth for the year and reconfirm the revenue and margin guidance we gave in July," he said.

The company said it expects further cost pressures in 2009, mainly due to soaring cocoa prices. Its 2009 commodity and input costs are expected to be around 6-8% higher than 2008 and Cadbury is currently in the process of implementing price increases in most of its major markets to cover the impact of future cost rises.

Sectors: Confectionery, Emerging markets

Companies: Cadbury, Cadbury Dairy Milk