Cadbury Schweppes, the world's largest confectioner, posted just a two per cent rise in half-year profit today and said its full-year results were expected to be within its financial target ranges.
The maker of Dairy Milk chocolate, Trident sugar-free gum and Dr Pepper drinks reported first-half pretax profit before exceptionals of €476 million compared to forecasts of €526-€568 million with a consensus of €550 million.
"Although we have a number of challenging integration projects in the second half, we remain cautiously optimistic about the outcome for the full year and expect to deliver results within our goal ranges," said chief executive Mr Todd Stitzer in a results statement.
He added the integration of US-based sweets company Adams was on track and the business was performing well.
Last October, Cadbury launched its Fuel for Growth strategy to make annual savings of €601million by 2007 from job cuts and plant closures, with a third used to drive sales harder and the rest to push up profitability, while it integrates its 2003 acquisition of Adams.
The group, which markets Snapple beverages, Halls cough sweets and Dentyne gum, said half-year underlying sales rose three per cent in line with its planned target of three to five per cent. Operating profit margins also rose in line with its goals.
The half-year dividend rose four per cent to 3.8 pence a share.
Cadbury's shares have outperformed the FTSE 100 index by around 27 per cent over the last twelve months with investors anticipating rising earnings coming through by 2005. The shares closed up 0.6 per cent at 473.5p yesterday.