UK: Acquisitions fuel Cadbury-Schweppes growth
The UK's confectionary and soft drinks group Cadbury Schweppes Plc is set to see a 10% rise in 2001 profits next week, analysts have predicted.
The growth is put down to acquisitions such as Snapple and Orangina, as growth in its two core businesses is largely expected to be flat.
Late last year Cadbury said it would meet its double-digit underlying earnings growth target in 2001, after reporting a 11% rise in underlying earnings in the first half of the year.
And earnings growth should continue into this year as the value of the acquisitions is fully realised.
But analysts warn the US carbonated drinks unit, Dr Pepper/Seven Up, faces a declining market and growing competition, particularly from Coca-Cola Co and PepsiCo Inc.
Analysts at Schroder Salomon Smith Barney said that Cadbury's "Managing for Value" strategy to improve efficiency has helped the group exceed its 10% earnings growth target since 1997, but that earnings will soon start to slow, Reuters reported today.
It is expected the group will report underlying pre-tax profits for 2001 of £860-875m after up from £792m in 2000. The results are released on Wednesday February 13.
Cadbury Schweppes has agreed to sell its European beverages business....
PepsiCo has refused to comment on reports linking the company with a bid for Cadbury Schweppes' soft drink business....
The European arm of drinks group Cadbury Schweppes is expected to be sold next month for around GBP1.1bn ($1.9bn), according to press reports....
UK-based soft drinks to sweets group Cadbury Schweppes has issued a trading update ahead of an investor seminar to be held in Dallas, Texas on 10 and 11 October....
Cadbury Schweppes is moving ever closer to selling off its European soft drinks business, according to German press reports....
Rumours are circling that Cadbury Schweppes' soft drinks business may be merged with Britvic....
Cadbury Schweppes Americas brand Mott's has announced a new line of fortified beverages....
AG Barr has agreed a new long-term contract with Cadbury Schweppes for the production, marketing and sale of the Orangina brand....
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