Confectionery and beverages group Cadbury Schweppes has reported a 10 per cent rise in half-year profits and says it is on track to meet its earnings and cash flow targets for the full year.
The group, which makes Dairy Milk chocolate and Dr Pepper and Snapple soft drinks, reported underlying pre-tax profits of £386 million for the 24 weeks to June 16th, at the top of the analyst forecast range of £372-385 million sterling.
"The business performed soundly in the first half and we are on track to meet earnings and cash flow targets for the full year," chief executive Mr John Sunderland said today.
The world's fourth-biggest chocolate maker and third-largest soft drinks group targets double-digit earnings growth and an annual free cash flow of £300 million.
Group sales rose seven per cent to £2.35 billion and the half-year dividend was increased by 4.5 per cent to 3.5 pence a share, with the group seeing a continuation of double-digit earnings per share growth, up 12 per cent at 12.9p.
Cadbury shares have outperformed the FTSE All-Share index by 28 per cent over the last 12 months but have performed in line with the DJ Euro food and beverage index. The shares closed at 425p yesterday.