Thursday, February 21, 2008

''Bittersweet '' news for Cadbury

Few days ago Cadbury Schweppes announced its plans to increase prices due to the warning that costs are likely to go 5% higher in 2008.

The warning came up when the confectionary colossus posted pre-tax profit for 2007 much lower than 2006 due to additional charges incurred for restructuring the business.

However, after recovering from a product recall, Cadbury started growing again with the growth rate touching 5%. Moreover, sales were also boosted in the second half by the Dairy Milk advertising campaign as well as the Wispa relaunch.

Furthermore, there were rumors around cost reduction complying with the company's plans to close 15% of factories worldwide and cut about 7,800 jobs.

Let's hope the changes will bring significant revenue rise to the ''purple'' company.

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