Cadbury Worried About Economy

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REC

Thursday Jul 31
Plans to restructure and sell £300m business
Cadbury’s chief executive, Todd Stitzer, is considering reshaping it’s board and selling its Australian drinks brand to meet profit targets.

Stitzer, who previously played down speculation that the Australian business, which accounts for 6% of the group sales, would be sold now confirms that Cadbury are looking “more carefully” at its portfolio.

Ken Hanna, chief financial officer, said rises in commodity costs over the past year, such as cocoa (37 per cent increase), milk (26 per cent increase) and sugar (29 per cent increase) had been a “stronger challenge” than the company had expected.

However, despite this, Cadbury reported a 28 per cent rise in pre-tax profits to £143 million, and said that it sees no signs that sales are slowing in emerging markets, which now account for aproximately a third of their total revenue.

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