Cadbury sees strong third quarter

| October 21, 2009 | 0 Comments

The maker of Dairy Milk chocolate, Cadbury, has exceeded analysts expectations in the third quarter after reporting a 7% rise compared with the same period a year ago.

Analysts had been expected growth of around 4% and the news sent shares up 0.9% to 808p in the British confectionery giant.

Cadbury chief executive, Todd Stitzer, said: “We have great momentum in our business and our confectionery strategy continues to yield benefits beyond expectations.”

Last month, US food giant Kraft, which is renowned for brands such as Kenco coffee, Oreo biscuits, Terry’s Chocolate Orange and Toblerone, approached Cadbury with an informal offer, which the UK confectioner later rejected.

Roger Carr, chairman of Cadbury, described its US rival’s £10.2 billion takeover offer as an “unappealing” and “unattractive prospect”.

Kraft’s original approach was worth 745p per Cadbury share. However, analysts believe that today’s news might entice Kraft back with a higher offer.

The UK’s Takeover Panel has given Kraft until 9 November to make a formal offer.

As well as Dairy Milk, Cadbury also owns the Green & Black’s chocolate brand, Halls lozenges, Trident and Dentyne gum brands and liquorice allsorts maker Bassett’s.

Tags: Cadbury, Kraft,

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