UK: Cadbury Schweppes expects to meet targets
The UK-based so Cadbury Schweppes CEO, John Sunderland, said today that the company expects to achieve its financial targets for the full year 2002. He commented that second half results had been satisfactory overall, adding that the group expects to meet its financial targets for underlying earnings growth and free cash flow for the full year 2002.
A strong performance in Britain and Ireland was backed up by a good showing in continental Europe, Africa, India and the Middle East. However this is expected to be offset by lower profits in the Americas due to the difficult economic environment in Argentina and a subdued trading performance in North America.
Cadbury Schweppes earns around 80% of its profits from businesses outside the UK. And, the strengthening of sterling against a number of currencies, mainly the US dollar, is expected to negatively impact earnings by around 4% in 2002, the company said in a statement to the media.
In the drinks division, North American was said to be satisfactory, with like-for-like volume results in the second half benefiting from stronger performances from a number of key brands including Dr Pepper and Snapple. However, the on-going changes in the company's distribution set-up for certain soft drinks brands, primarily 7 UP and Hawaiian Punch, are adversely impacting volumes and, as predicted at the interim results, will leave overall like-for-like volumes flat for the region in the second half.
Profits for the year are expected to benefit from contributions from acquisitions and continued generation of supply chain efficiencies.
European Beverages were also described as satisfactory, thanks to cost reductions and the intgration of acquisitions.
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