UK: Cadbury Schweppes issues trading update
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.
The company said it expected revenue growth for the year to be at the top end of its forecast range but warned that margin growth was unlikely be within its margin goal range for the year.
The company said its US carbonated soft drink share has been resilient and the performance of the non-carbonated business has shown further improvement in spite of increased competition.
Cadbury Schweppes said it only anticipated a minor impact from the effect of the recent hurricanes in the US. But it added that cost pressures have intensified in the second half, particularly in the US. Oil price increases and hurricane-related disruption had resulted in higher transport and bottle/PET resin costs, the company said.
The company's CEO Todd Stitzer said: "We continue to experience strong sales momentum across the group and expect revenue growth for the year to be around the top end of our goal range. Despite intensifying cost pressures and significant growth-related investment, we expect a further improvement in margin in 2005, although we are unlikely to make sufficient progress to be within our margin goal range this year. We are making good progress on cash flow, and expect to see a significant increase this year."
Stitzer will be among those addressing the investor seminar in Dallas. Other speakers will include chief financial officer Ken Hanna and key members of the company's US beverage and confectionery teams. The seminar will also include a management presentation from the Dr Pepper/Seven Up Bottling Group Inc. and a visit to its Irving plant.
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