Bacterium Blights Cadbury's 2006 Forecast

30 October 2006

LONDON: Cadbury-Schweppes shook investors last week with a warning that full year sales and profits growth would not meet expectations.

Ceo Todd Stitzer blamed this on a decline in UK confectionery sales during a long hot summer and the discovery earlier this year of thousands of salmonella-contaminated chocolate bars.

Revenue growth, said Stitzer, would be in the "middle" of its goal range - down from its June forecast of growth in the "upper" range of its 3%-5% target for 2006.

He also warned that any improvement in profit margins during the current fiscal is unlikely.

Data sourced from Financial Times Online; additional content by WARC staff