Cadbury Schweppes today reported a six per cent rise in annual profits but warned that 2003 profits at its US soft drinks unit DPSU are unlikely to exceed 2002.
The confectionery and soft drinks group, which makes Dairy Milk chocolate and Dr Pepper fizzy drinks, said underlying pre-tax profits were €1.41 billion for the 52 weeks to December 29th, 2002, compared to analysts forecasts of €1.39-1.43 billion.
Cadbury agreed to buy US sweets group Adams last December for $4.2 billion, a move which will add Halls medicated sweets and Trident sugar-free gum to its portfolio and make it the world's largest confectionery group. It said this deal was due to completed by end of March.
Chief Executive Mr John Sunderland said the amalgamation of its North American beverage operations bringing its carbonated unit Dr Pepper/Seven Up (DPSU) together with juice division Mott's and non-carbonated unit Snapple would be disruptive in 2003.
"We anticipate a further sound performance from our beverage operations. The exception will be Dr Pepper/Seven Up where franchise transfers, notably of 7 Up, are expected to be disruptive to volume in this year of transition. Profits at DPSU are therefore unlikely to exceed those in 2002," he said.
"The year has started satisfactorily despite the broader economic uncertainty," he added on general trading on 2003.
Cadbury hit its financial targets of underlying double digit earning growth in 2002 for the sixth year running, despite slowing US soft drink growth, high cocoa prices and dollar weakness.