Cadbury capitalises on consumers’ love of comfort food
Cadbury, one of the world’s leading confectioners, has reported revenue growth of 2% in the first quarter as consumers look for cheap indulgence amid a global recession.
Revenue growth surged 11% in reported currency due to the weakness in the pound, with growth led by a “very good Easter”.
The UK and emerging markets helped the company overcome soft results in the rest of Europe and North America, the company said.
“We made further progress in the first quarter, despite cycling strong prior year comparatives,” Todd Stitzer, Cadbury’s CEO, stated. “A strong chocolate performance and good growth in emerging markets were partially offset by customer de-stocking and softer demand in North America and Europe.””Our Vision into Action plan continues to deliver growth, efficiency and capability benefits, with strong innovation and significant cost savings expected in 2009. As a result, we reconfirm our guidance to deliver revenue growth around the lower end of our 4-6% goal range and to make good progress toward our goal of mid-teens margins by 2011,” he concluded.
Their Australian performance was sound, with growth in chocolate and mainstream candy brands spurring a solid result. “Australia grew despite clearing trade inventories in preparation for the relaunch of the core Cadbury chocolate brand in the second quarter of the year,” the company reported in a statement.