Britain's Cadbury Schweppes said 2007 confectionery sales and margins would be higher than expected due to a recovery in its UK chocolate business and strong growth in US chewing gum.
The company predicted confectionery sales growth will be above its medium-term target of 4 to 6 per cent for 2007, while operating margins will see a modest rise after the group had previously expected flat margins for the year.
Chief executive Todd Stitzer said the recovery in growth was led by the relaunch of its Wispa bar and its advertising featuring a drum-playing gorilla, and was helped by growth in Trident gum.
Trading also benefited from a weak 2006 comparison due to hot summer weather and a salmonella-related product recall.
US gum operations, including Trident and Stride, pushed market share to nearly 35 per cent compared with 27 per cent before Cadbury bought the business in 2003.