1999 TRADING UPDATE
24 Nov 99
Cadbury Schweppes plc has decided henceforth to issue regular trading updates ahead of its interim and preliminary results to ensure that information provided to the investment community is widely available.
Cadbury Schweppes plc has decided henceforth to issue regular trading updates ahead of its interim and preliminary results to ensure that information provided to the investment community is widely available.
The following comments are made in respect of 1999 trading; the 1999 preliminary results will be issued on 16 February 2000.
Current Trading
The strong profit performance seen in our beverages operations has continued into the second half, driven by Dr Pepper/Seven Up in the US.
We are maintaining or growing our shares in most of our key confectionery businesses, although demand in some confectionery markets remains subdued. We anticipate a satisfactory profit outcome in the confectionery division for 1999 given our continued focus on a more profitable product mix and attention to costs.
Group underlying profit before tax, restructuring and exceptionals for the year to December 1999 is anticipated to be in line with market expectations.
Business Development
Proceeds of nearly $1bn from the sale of our soft drinks brands in over 155 countries to The Coca-Cola Company will create exceptional gains of around £400 million. These proceeds will be used to develop our business, both organically and by acquisition, and maintain our commitment to growing shareowner value.
For 1999 Cadbury Schweppes intends to take a total restructuring charge of around £75 million in order to accelerate a series of restructuring initiatives in a number of our major businesses.
In addition, Cadbury Schweppes may commence rolling on-market share purchases, the timing and extent of which will depend upon prevailing market conditions.
John Sunderland, Cadbury Schweppes' Chief Executive, commented, "During 1999 Cadbury Schweppes has created a more robust and sustainable portfolio of businesses. Our core confectionery and soft drink businesses are making sound progress. We are confident that the many initiatives within our Managing for Value programme will continue the transformation of the business."
Notes:
1.
The trading update will be followed by a conference call for analysts at 3 p.m. (GMT) today.
2.
This news release may be deemed to include forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. It should be read in conjunction with our Interim Report for the six months ended June 30, 1999, copies of which are available from Cadbury Schweppes plc, 25 Berkeley Square, London W1X 6HT.
for
further information contact:
media enquiries
Dora McCabe
Head of Group Public Relations
Tel: +44 (0)20 7830 5127
Fax: +44 (0)20 7830 5137
contact Dora McCabe
general enquiries
investor enquiries
Sally Jones
Investor Relations Director/Finance Director Global Commercial
Tel: +44 (0)20 7409 5124
Fax: +44 (0)20 7830 5157
contact Sally Jones
David Kappler
Chief Financial Officer
Tel: +44 (0)20 7409 1313
