Cadbury warns of rising costs
Cadbury Schweppes today said it would look to increase prices after warning that commodity costs were likely to be 5% to 6% higher in 2008.
The warning came as the confectionery giant posted pre-tax profits of £670m (€888m) for last year, down on £738m (€978m) seen in 2006 after it booked additional charges for restructuring the business.
Cadbury’s business in the UK grew revenues by 5% – broadly in line with the overall confectionery market – after the company recovered from a product recall and the impact of a hot summer in 2006. Sales were boosted in the second half by the relaunch of Wispa and an advertising campaign for Cadbury Dairy Milk.
