Cadbury has beaten sales forecasts and raised targets in a bumper third-quarter trading report. The figures may put pressure on US group Kraft to come up with a bigger bid to win its takeover battle.
The UK confectionery group said its underlying sales rose 7% in the July-September quarter, beating even the most optimistic forecasts, and unexpectedly increased both its sales and margin growth targets for 2009.
Cadbury said it expected 2009 sales growth of around 5%, up from 4% previously, and its operating margin percentage to jump at least 1.35 points rather than its old target of 0.8 to one point.
Chief executive Todd Stitzer gave an upbeat outlook as the group returned to more 'normal' growth rates and saw at least 5% underlying sales growth in 2010 and 2011, but made no mention of the proposed multi-billion pound bid from Kraft.
Cadbury has repeatedly rejected Kraft's £10.2 billion cash and shares proposal made in early September, and the UK Takeover Panel has given Kraft a deadline of November 9 to come up with a firm bid or walk away for six months.
