Cadbury issued a mixed trading update this morning (16 December), revealing that its businesses in the UK, Ireland, the Middle East and Africa had enjoyed growth but that its operations in North America had seen growth “soften”.
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The UK-based confectionery giant said the business was performing “in line with expectations” despite weakening economic conditions in the fourth quarter of its fiscal year.
The company insisted it expects “strong profit growth” for its financial year and reaffirmed the guidance it gave in July, when it forecast sales growth at the “top end” of its 4-6% target and margin growth “in line with current market consensus”.
Chief executive Todd Stitzer said: “Looking forward, despite forecasting a 6-8% rise in input costs for 2009 and weakening economic conditions, we remain committed to delivering mid-teen margins by 2011 and making further progress towards that goal in 2009.”
Cadbury said its Britain, Ireland, the Middle East and Africa division had “continued to grow well”. Its European business had seen a “steady performance”, while growth had been “strong” in South America.
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By GlobalDataHowever, in North America, there had been a “softening” in growth, Cadbury said.
Cadbury said its emerging markets in Asia-Pacific had “continued to perform well” and had offset weaker trading in Australia.
The company, which earlier this year split its North American confectionery and beverage operations in two, had at the time decided to keep its drinks business in Australia.
It said today, however, that it would look to sell of its beverage operation in Australia.
“The separation of the integrated beverage and confectionery businesses in Australia is now well advanced and we will update the market on further developments in due course,” the company said.
Shares in Cadbury dipped 0.9% to 552p at 09:36 GMT this morning.
The company is set to issue its full-year results on 25 February.
