British confectionery and soft drinks giant Cadbury Schweppes has posted a 13.8% rise in annual pre-tax profits as cost cutting insulated it from the effects of a weaker dollar, sluggish European sales and higher raw material prices.
The company's 2004 pre-tax profits rose to £642m, boosted also by a strong performance in the US.
Cadbury - whose products include Cadbury chocolate, Bassett's Liquorice Allsorts sweets and the carbonated drink Dr Pepper - said underlying profits before tax, goodwill amortisation and exceptional items rose by 1.2% to £933m, slightly above analysts' forecasts.
The company said a cost-cutting programme slashed £75m off expenses. The measures are expected to generate annual savings of £100m this year as Cadbury closes a fifth of its 133 factories around the world and lays off 10% of its 54,000-strong workforce.
Cadbury, which earns over 80 percent of its revenues and profits outside Britain, said adverse exchange rate movements - primarily a weaker US dollar - reduced sales by 4%. Cadbury's annual sales turnover meanwhile increased by 5% to £6.7 billion.
