Cadbury's Sales, Net Profit Jump

LONDON -- Confectioner Cadbury PLC beat expectations Wednesday for first-half sales and said its net profit rose sharply, helped by the disposal of its Australia Beverages business to Asahi Breweries of Japan.

The U.K.-based maker of Cadbury chocolate and Trident gum said net profit for the first half rose to £313 million from £113 million a year earlier.

Sales rose 13% to £2.77 billion. Stripping out disposals, acquisitions and the effect of the weak pound, sales were up 4% -- ahead of analysts' expectations of a 3.3% rise.

Chocolate, which accounted for 45% of company revenue in the first half, and bagged candies had been expected to benefit from people enjoying themselves at home rather going out during the recession, Cadbury said.

The company's net was helped by a £234 million pound contribution resulting from the demerger of its Americas Beverages business in May 2008 and the disposal of its Australia Beverages business to Asahi Breweries of Japan in April.

Cadbury increased its margin target for the full year, as a strong performance in emerging markets and its chocolate division more than offset slow sales in North America and Europe.

"A strong chocolate performance and good growth in emerging markets more than offset a slow start in North America and continued softness in Europe," said Chief Executive Todd Stitzer.

Mr. Stitzer said sales for the year would still be at the lower end of the group's 4% to 6% long-term goal range. Its full-year margin, however, is now expected to increase between 0.8 and one percentage point, up from a previous forecast of a 0.7 to 0.8 percentage-point increase.

Food industry consultant James Amoroso described the figures as an "excellent set of results." He welcomed the raising of the margin guidance and said there is scope for the targets to be beaten. link....