Cadbury labels 2009 sales figures “outstanding”

Posted by Daniel Palmer on 15th January 2010

UK-based confectioner Cadbury, the subject of a hostile takeover bid from Kraft, has reported their 2009 financial figures overnight, saying revenue growth and margin expansion came in “well ahead of expectations”

Full year base business revenue surged five per cent, with second half growth up six per cent. The chocolate division led the way with sales rising seven per cent while candy (5%) and gum (2%) sales were also higher.

Emerging markets were again a key contributor, with sales increasing by nine per cent, while developed markets saw more moderate two per cent growth – although the confectioner added that such markets showed considerable improvement in the second half.”Our performance in 2009 was outstanding,” proclaimed Todd Stitzer, Cadbury’s CEO. “We generated good revenue growth despite the weakest economic conditions in 80 years.

“Looking forward to 2010, we are targeting revenue growth within our 5-7% goal range, led by new product innovations across our categories and supported by incremental investment in marketing. We expect benefits from our restructuring and reconfiguration actions in 2010 to drive continued progress to achieve our targets of good mid-teens margin by 2011 and 16-18% margin by 2013.”

The Dairy Milk maker used the “outstanding” results to further their assertion that the Kraft bid is “derisory”, with Chairman Roger Carr reiterating the Board’s opinion that the current offer would be a ‘steal’ for Kraft.”The Board has great confidence in both our growth prospects and the potential for creating further, material shareholder value as a pure-play standalone confectionery business,” he told shareholders. “Don’t let Kraft steal your company with its derisory offer.”