Cadbury reports, strong growth in sales, margins and earnings for 2008

Since the demerger of Dr Pepper Snapple Group completed in May 2008, Cadbury has been transformed into a pure confectionery company. Also announced was a conditional agreement to sell Australia Beverages for £550m.

• Base business revenue up 7%; strong growth across emerging markets and focus brands (up 8%; Cadbury Dairy Milk up 11%, Trident up 11%, and Halls up 9%).
• Reported margins up 180 bps to 11.9%
• Recommended final dividend of 11.1p; full year dividend 16.4p, up 6%.

Todd Stitzer, Cadbury's CEO said: "In 2008, Cadbury completed its transformation into a pure-play confectionery company. Our strong revenue growth and significant improvement in operating margin demonstrate the relative resilience of our focused business model. Whilst we will not be immune from the continued weak economic environment, at this early stage in 2009, we expect to deliver revenue growth around the lower end of our 4-6% goal range and to make good progress toward our goal of mid-teens margins by 2011."

In Britain, Ireland, Middle East and Africa (BIMA), base business revenue grew to 1,579 million - up by 6.5% in 2008. In Europe, revenue was up 4% (making 879 million). America saw revenue was up 9.8% to 1,372 million. In Asia Pacific, revenue also grew 6%.

Net debt decreased to £1.9bn at the end of 2008, with another 600 million Euro bond, due to be paid off in June 2009. So all-in-all some stalwart results, compared to a dire start to 2009 for many companies.

Remember as 2008 has shown, shares and other financial assets can go up and down at frightening speed. Don't buy any, unless you know what you are doing and can afford to lose the money. Cheryl Marabese