Financial Information and Sales Data of Cadbury : Report
Added on - 22 Jul 2020
CADBURYFinanacial information and sales data of organisationBack in 2010, Kraft’s £11.5 billion hostile takeoverof Cadbury sparked controversy. But some werewon over by the American company’s “sincerebelief” it would reverse a decision by Cadbury toclose a key factory at Somerdale, near Bristol.Within weeks of the takeover going through, Kraftannounced it was going to close the factory. Fourhundred jobs were lost.Cadbury rose 3 pence, or 0.5%, to 628 pence inLondon trading. The stock has declined 8.5% in2008 and 21% from its record peak in May 2007,when investors expected a sale of the US beverageunit to a private-equity firm.''The group has been passing on higher commoditycosts through strong price increases,'' Ian Kellett, ananalyst at Numis Securities with an ''add'' rating onthe shares, said in a research report. ''We see noreason for trading to soften.''Cadbury, which spun off its US soft-drink unit inMay, will report 80 million pounds of restructuringcharges in the first half, and expects to report asimilar amount in the second half. Currencymovements will boost sales and operating profit byabout 7% in the first half.Todd Stitzer was on feisty form on Wednesday. Wavingbars of Wispa and Cadbury Dairy Milk chocolate in theair, the Cadbury chief executive took pains to stress thatthe former weighed 10g less than the latter. Thedifference between a chocolate bar weighing 39g and oneweighing 49g was of great concern to Mr Stitzer as heattempted to assuage concerns over a 3 per cent drop inCadbury’s sales volumes in the third quarter. AlthoughCadbury’s quarterly revenue growth and full-yearfinancial forecasts were better than expected, analystsquestioned aspects of the company’s financial update,with some suggesting that a strong quarter did notnecessarily indicate strong trading in 2010. Kraft isexpected to seize upon weaknesses in the update as itconsiders raising its offer for Cadbury. The groupreported 7 per cent revenue growth, mostly derived fromraising prices and changing the mix of products, such asselling higher margin sugar-free gum. Analystsexpressed concerns about the drop, which extended the1-2 per cent slide in the first half.