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Nikkei Financial - Strong Sales Rise Boosts Cadbury

"Nikkei Financial" - UK confectioner Cadbury has reported higher-than expected sales for the third quarter of the year, raising pressure on would-be US suitor Kraft.

FOR IMMEDIATE RELEASE

PRLog (Press Release) - Oct 26, 2009 -
It also raised its forecast for revenue this year to "around the middle" of its previous guidance of 4-6% growth.  Last month, Cadbury rejected a takeover approach from Kraft, which had valued the company at £10.2bn ($16.3bn).

The UK's Takeover Panel has given Kraft until November to make a formal offer. The confectioner's shares rose 0.9% to 808 pence in London. Kraft's original approach was worth 745p per Cadbury share.

Cadbury said sales rose 7% in the quarter from the prior year, excluding the impact of currency fluctuations.

Analysts at Nikkei Financial had been expected growth of about 5%.

Nikkei Financial indicated that sales in the UK and the Republic of Ireland rose by almost 10%, while candy and gum sales increased due to higher demand in North America and continental Europe.

"We have great momentum in our business and our confectionery strategy continues to yield benefits beyond expectations," said Cadbury chief executive Todd Stitzer in a conference Nikkei Financial attended.

Cadbury has said that the original Kraft offer "fundamentally undervalued" the firm and that it would prefer to remain independent.

The increase in Cadbury's share price has raised speculation that Kraft will come back with a higher offer. If it does not make an offer, Kraft will be blocked from making a bid for Cadbury for six months.

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Last Updated:Oct 26, 2009
Shortcut:http://prlog.org/10388851
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