Slow Start to 2006 for Cadbury Schweppes

The chairman of the world’s largest confectionery company Cadbury Schweppes, John Sunderland revealed at the company’s AGM that from a trading perspective, the company has had a relatively slow start in the first quarter of 2006, particularly in Europe. “We are now seeing increased momentum in our gum and beverage businesses and Easter was satisfactory in our key chocolate markets. Input costs remain challenging, particularly given the further rise in oil prices. We will update the market on current year trading at our interim update on 7 June," he commented.
"2005 was another successful year for Cadbury Schweppes. We achieved our highest rate of revenue growth for a decade, with all of our major businesses making a significant contribution. Increased innovation and improved market-place execution drove this performance and we saw share gains in the majority of our key markets. I am pleased to report that the Adams business, the largest acquisition in our history, has been integrated ahead of schedule and performance is exceeding our expectations”, he said at the meeting.
"We continue to focus on ensuring our business portfolio is optimally positioned for growth and returns in terms of both category and geographic participation. Over the last year, we have sold a number of businesses and are redeploying the capital into businesses and markets which we believe will generate superior growth and returns”, he noted.
Cadbury Schweppes successfully sold its Europe Beverages business earlier this year for £1.3 billion, a price which exceeded the market s expectations. The sale of other smaller businesses netted the company around £40 million. Sunderland said they expect to raise between £300 and £350 million over the next two years through the disposal of other small businesses and surplus properties.