Cadbury Schweppes reported strong growth in first-half sales and promised to hit margin targets for the full year despite growing pressure from Coca- Cola and PepsiCo, boosting its shares.

The world's largest confectioner - which employs 1,600 people in Ireland, said on Tuesday that sales rose 6 per cent to £3.1 billion (€4.5 billion), beating its own 3-5 per cent sales growth target. Investment bank Credit Suisse First Boston said its organic growth was the best showing by Cadbury in a decade, driven by a 13.6 per cent rise in US confectionery sales.

Products such as Cadbury Dairy Milk - in its centenary year - led the way with a 9 per cent rise, while sales of Trident gum and Halls cough sweets, acquired after the firm bought US firm Adams in 2003, grew 15 and 17 per cent, respectively.

Chief financial officer Ken Hanna said although underlying operating margins had only risen 10 basis points in the half, Cadbury still expected to meet its target of a 50-75 point increase in margins for the full year.

"We flagged in February that we expected first-half margins to be lower than our goal ranges, but we'd make the full year, and we are still saying that today," Mr Hanna said, adding that Cadbury usually booked 60 per cent of sales in the second half.

Chief executive Todd Stitzer said Cadbury was likely to continue to face a tough operating environment, while the price of oil remained high, and competition in the US drinks market, where it sells 7UP, Schnapple, Hawaiian Punch, had intensified.

Rivals Coca-Cola and PepsiCo have both said they will invest more in marketing in the second half of the year, he said.

"Although the external environment is likely to remain challenging, we will continue to increase investment behind long-term growth and expect to deliver within our goal ranges for the full year," Mr Stitzer said in a statement. The half-year dividend rose 5 per cent to 4 pence a share.