UK confectionery and soft drinks giant Cadbury Schweppes has said that it is unlikely to meet its profit margin goal for 2005.

"We continue to experience strong sales momentum across the group and expect revenue growth for the year to be around the top end of our goal range," said Todd Stitzer, CEO of Cadbury Schweppes, in a trading update.

"Despite intensifying cost pressures and significant growth-related investment, we expect a further improvement in margin in 2005, although we are unlikely to make sufficient progress to be within our margin goal range this year. We are making good progress on cash flow, and expect to see a significant increase this year," Stitzer added.

The company said it has continued to see good sales momentum across the group's confectionery businesses driven by innovation and market-place execution.

"Cost pressures have intensified in the second half, particularly in the US. Oil price increases and hurricane-related disruption have resulted in higher transport and PET resin costs. In addition, severe financial difficulties experienced by an important supplier to our beverage business in the US have led to significant price increases for glass bottles," the company said.