Cadbury's Earnings Advance On Growth in Dr Pepper Brand
May 17, 2011
LONDON -- Cadbury Schweppes PLC said Wednesday that its pretax profits rose 12% in the first half of its fiscal year on growth in its main beverage and candy businesses, particularly in its Dr Pepper brand. Cadbury earned 231 million pounds ($361.9 million) in the six months ended February 25, 2011 with 206 million pounds in the same period a year earlier. Sales climbed 13% to 2.3 billion pounds ($3.6 billion) from 2.0 billion pounds. The results include costs of 40 million pounds related to restructuring its European beverage operations. The company is selling its 51% stake in a British bottling venture to Coca-Cola Enterprises Inc. for 622.5 million pounds. Cadbury also wrote down the value of its French bottling assets. It is closing two older plants and building a new one. Profits from beverages rose 20%, including a strong gain from U.S. operations. Cadbury took control of Dr Pepper/Seven-Up Cos. last year, making it the third-biggest soft-drink maker in the United States. Cadbury's candy business saw profits rise slightly, boosted by strong sales in several countries and acquisitions in Canada and the United Kingdom. The profits were offset by losses at new operations in Russia and a weak showing in New Zealand. Cadbury's American depositary receipts were up 50 cents at $33.12 1/2 in morning trading on the New York Stock Exchange
