Strong double-digit growth in trading profits at Cadbury Ireland contributed to improved 1998 profits at the Cadbury Schweppes group and boardroom predictions are for "consistent profit performance" from the Irish business in 1999.
Overall, group pre-tax profits excluding disposal gains rose 6 per cent last year to £609 million sterling (€888 million) after currency adjustments on sales up 4 per cent at £4.1 billion (€5.98 billion). Trading margins improved by 0.8 percentage points to 15.3 per cent.
Profits earned on confectionery activities, including Cadbury Ireland, rose 6 per cent to £280 million sterling before currency adjustments, despite the adverse impact of the collapse of the Russian economy which affected a number of European subsidiaries.
Chief executive Mr John Sunderland said that Cadbury Ireland recorded "strong trading profit growth" in company with the group's confectionery interests in Britain, Australia and New Zealand, that accounted for 80 per cent of total 1998 confectionery stream profits.
Cadbury Ireland maintained its share of the domestic market, helped by a good performance by Cadbury Roses, strongly marketed in Ireland through a "Roses reunites friends" media campaign. Growth in export markets benefits from Cadbury Ireland's appointment as the sole supplier of crumb, the processed raw material for making chocolate, to giant US confectionery combine Hersheys.
Ahead, Mr Sunderland said the Irish company and the group's other leading confectionery businesses had strong brands and good records of innovation underpinned by value-based management.
"We believe this combination will continue to produce consistent profit growth," he said. Total dividend payments are up 6 per cent to 19p on the 1998 outcome.
