Cadbury’s sales growth boosts fight to defeat Kraft’s takeover bid

Oct 21 2009 by Jon Griffin, Birmingham Mail

TAKEOVER target Cadbury came out fighting again today with another hammer blow to suitors Kraft after reporting an “excellent” quarter of trading.

The Dairy Milk maker, which last month rejected a £10.2 billion proposal from Philadelphia and Oreos firm Kraft, reported seven per cent growth in sales, up from two per cent and six per cent in the previous two quarters.

Cadbury chairman Roger Carr said the third quarter performance reaffirmed its confidence in remaining a “stand-alone confectionery business”.

The chocolate maker said revenues for the full year were now expected to be “around the middle” of its four per cent to six per cent range.

Kraft is widely speculated to be working on an improved approach. The City takeover authority ordered it either to make a firm offer or not to bid for Cadbury by 5pm on November 9.

Reports last month suggested Kraft was working on an £11 billion hostile bid for the chocolate giant. Cadbury slammed the initial proposal as “fundamentally” undervaluing the business and for being of “uncertain value” for its shareholders.

In a show of financial strength today, Todd Stitzer, Cadbury’s chief executive, said: “We have great momentum in our business and our confectionery strategy continues to yield benefits beyond expectations.”

But the figures revealed price increases were offsetting a three per cent fall in sales volumes in the three months to September 30.

In the UK, revenues grew ten per cent.