Cadbury Schweppes has warned that "strong progress" from its drinks business in the Americas is being hit by costs in the UK and Nigeria.

The UK-based group said today (12 December) that trading is in line with expectations but added that events in its domestic market and Nigeria are weighing on its performance.

Cadbury Schweppes CEO Todd Stitzer said: "2006 has been a challenging year for Cadbury Schweppes with very strong performances across large parts of our business partly offset by events in the UK and Nigeria."

He added: "Although these have taken the edge off another year of strategic and operating progress for the group, our performance in 2006 will be in line with previous guidance."

In the last year, Cadbury has seen its confectionery business hit with salmonella contamination in the UK, while its business in Nigeria had faced a probe into accounting irregularities.

The company said costs from the UK salmonella outbreak would rise from an original estimate of GBP20m (US$39.2m) to GBP30m.

Cadbury also said it expects its business in Nigeria to record a loss this year of GBP5-10m. The company will also absorb one-off exceptional charges of GBP20-25m due to the profit and balance sheet overstatements the Nigeria business has recorded in previous years.

Nevertheless, Cadbury said its beverage business in the Americas has gained share in the carbonates segment thanks to "good performances" from key brands, including Dr. Pepper and 7 Up.