 Last year's salmonella scare forced one million bars to be recalled |
Confectionery giant Cadbury Schweppes has said it is starting 2007 with optimism as it plans new investment to drive sales. The news came as it reported a 9% rise in underlying profits to �931m for 2006, at the low end of expectations.
After the impact of a restructuring plan, last year's salmonella scare and the sale of its European drinks unit are included, profit fell to �738m.
Cadbury said revenue growth at its confectionary business slowed to 4%.
That was down from 6% growth in 2005, with the slowdown following "difficult trading" in the UK.
Investment
In June last year, the firm was forced to take more than a million chocolate bars off UK shelves following a salmonella outbreak at one of its plants - a move that cost it �30m.
Other costs included a �15m charge for a "significant overstatement" of finances at its 50%-owned subsidiary Cadbury Nigeria, and �133m of costs related to a continuing restructuring programme.
Cadbury said it would invest this year to revive UK chocolate sales and launch its global gum brand Trident into Britain.
In the US, the company is also planning to expand the Stride gum brand and launch a new sports drink Accelerade.
However, shares in Cadbury slipped as analysts said the investment plans could hit short-term profits. In morning trade, Cadbury's shares were down 6.5 pence at 570p.
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