Cadbury chief executive Todd Stitzer said today (14 January) that the UK confectioner had had an “outstanding year” as the Dairy Milk maker put more flesh on its 2009 accounts.
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The company, owner of Trident gum and Halls candy, said its ongoing Vision Into Action restructuring programme had boosted underlying operating margins by 160 basis points on a constant-currency basis.
The group said annual revenues rose 5% after sales climbed 6% during the second half in 2009 when the firm saw a “significant improvement” from its business in the US and Canada.
Chocolate sales in the UK, India and South Africa drove a 7% rise in revenues from a division that accounts for 46% of Cadbury’s total turnover.
Gum sales, which generate a third of Cadbury’s revenues, rose 2% as the launch of Trident Layers helped the company’s business in the US recover after a weak first quarter.
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By GlobalDataCandy sales, meanwhile, were up 5% due to “significantly improved performances” from Halls candy and Eclairs.
“Our performance in 2009 was outstanding. We generated good revenue growth despite the weakest economic conditions in 80 years,” Stitzer said.
The Cadbury boss, currently fighting off a hostile takeover from Kraft Foods, said the company’s “restructuring and reconfiguration” would continue to help the business meet its target of “good mid-teens margin by 2011 and 16-18% margin by 2013”.
“Looking forward to 2010, we are targeting revenue growth within our 5-7% goal range, led by new product innovations across our categories and supported by incremental investment in marketing,” Stitzer said.
