The company, maker of Dairy Milk chocolate, said pre-tax profits for the six months to mid-June came in at �294m ($470m), down by nearly a third compared with the same period last year.

It said the decline reflected weaker sales of soft drinks, particularly in its key US market.

"Our beverage businesses have had a more difficult half, mainly due to a slow-down in the US soft drinks market," said chief executive Todd Sitzer.

Earlier this year, Cadbury Schweppes acknowledged that weak consumer spending and new product launches from rivals such as Coca Cola had hit sales in the US.

The company's performance was also affected by currency fluctuations and the cost of integrating earlier acquisitions, including US confectionery giant Adams.

Cadbury played down hopes of a rebound in the months ahead, saying profits from its American confectionary and beverages division would be flat in the second half of the year.

The firm warned in February this year that it would miss its 2003 growth targets because of a restructuring programme aimed at amalgamating its North American businesses.

'As we have said previously, 2003 is a year of transition for Cadbury Schweppes," Mr Sitzer said.