British chocolate and chewing gum maker Cadbury upgraded its full-year outook as it reported a 7% rise in Q3 revenue. The firm said that it doesn’t need to be taken over by a conglomerate such as Kraft to deliver results.
“We have great momentum in our business and our confectionery strategy continues to yield benefits beyond expectations,” said Cadbury chief executive, Todd Stitzer. “In the third quarter, we’ve delivered growth in every category and every business.”
Cadbury chairman, Roger Carr, added: “The strength of our operating performance continues to underpin the board’s confidence in our growth prospects and the potential for creating further, material shareholder value as a pure play standalone confectionery business.”
In a press release, Cadbury said it expected 2009 sales growth of around 5%, up from 4% previously, and its operating margin percentage to jump 135 basis points rather than its old target of 80-100 basis points. Analysts expect shares in the confectioner to open higher, which would force Kraft to consider making a winning bid.
Cadbury has repeatedly rejected Kraft’s £10.2bn cash and shares proposal made in early September, and the UK Takeover Panel has given Kraft a deadline of 9 November to come up with a firm bid or walk away for six months. Many analysts believe that Kraft will wait until it announces its own Q3 earnings on 3 November before raising its bid.
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