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Last Updated: Thursday, 6 October 2005, 14:13 GMT 15:13 UK
Cadbury to miss profit forecasts
Dairy Milk bars
Cadbury is the world's biggest confectionary firm
Shares in Cadbury Schweppes have fallen by nearly 5% after the company warned it was unlikely to meet its profit margin forecasts this year.

The world's largest confectionary firm, maker of Dairy Milk, Trident gum and Dr Pepper, said costs had risen in the second half due to higher oil prices.

"We are unlikely to make sufficient progress to be within our margin goal range this year," the company said.

However, it said revenue growth would be around the top end of forecasts.

At its first-half results announced in July, Cadbury was confident of hitting its annual sales and margin targets, but rising fuel costs and the impact of Hurricane Katrina have jeopardised profit margins in the second half.

The company employs over 50,000 people and has manufacturing operations in more than 35 countries.

Cadbury shares have risen just over 20% so far this year, valuing the group at about 12bn $21.23bn).

Shares in the group were down 29 pence, 4.93%, to 557.5 on Thursday.


SEE ALSO:
Cadbury enjoys 'strong' trading
26 Jul 05 |  Business
Cadbury boosted by upbeat outlook
23 Feb 05 |  Business
Cold weather cools Cadbury sales
24 Sep 04 |  Business


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