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Cadbury's ditches growth goals

30/10/2006

Cadbury Schweppes, which owns Dr Pepper and Dairy Milk, has announced that it will be dropping the margin growth targets it set in 2003.

In a statement from the world's largest confectionary group, Cadbury said they will continue to focus on growth in operating margins and for an increase in annual sales of between 3 and 5 per cent from 2007 onwards.

On the new "financial scorecard", chief executive Todd Stitzer announced that although the sales targets will remain, no specific targets are given for margin growth. Instead, Cadbury said they will, "commit to grow revenues, margins and return on invested capital over time".

In June, Cadbury recalled several brands of its chocolate bars after traces of salmonella were found in some bars. Discouraging sales over the summer are seen to be related to the exceptionally warm summer in Britain.

The sales targets are hoped to be helped by the launch of Trident chewing gum in the UK in 2007 which the company argues is the world's fastest growing brand.


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