UK-based confectionery and soft drinks giant Cadbury Schweppes has reported higher full-year turnover and said 2004 was a good year for the company.
The company reported turnover of £6.74bn (US$12.9bn) for the 53 weeks ended 2 January, compared to £6.44bn in the previous year, which contained only 52 weeks. Profit before tax rose to £642m from £564m a year earlier.
“2004 was a good year for Cadbury Schweppes with excellent progress in key markets, particularly the US. We successfully built sales momentum in beverages and confectionery while integrating Adams and implementing major cost reduction programmes,” said chief executive Todd Stitzer.
Cadbury said its “Fuel for Growth” initiative delivered cost benefits of around £75m during the year, in line with expectations.
The company said its confectionery businesses around the world had a successful year with like-for-like sales growth of nearly 6% led by core brands including Cadbury, Trident and Halls, and a strong year-end holiday season.
“The Adams business is exceeding our expectations, with sales and profits in 2004 higher than the acquisition case driven by strong category growth, increased innovation and marketing investment,” the company said.
In 2005, Stitzer said Cadbury plans to build on progress made in 2004 by increasing investment in marketing, innovation and science and technology.
“We have good momentum and Fuel for Growth cost reductions will deliver further significant savings. While the external commercial environment remains competitive, we are confident that we have the strategy, brands and people to deliver within our goal ranges in 2005,” he added.