Cadbury Schweppes' recall of seven products in June this year following a salmonella scare will cost an estimated £30m.

The confectionery giant had originally estimated costs of £20m but in a full-year trading update released this morning, admitted the cost had increased because of “higher manufacturing and facility rectification and remediation costs”.

Stronger top-line growth in emerging markets in its Europe, Middle East and Africa division had offset a weaker performance in the UK, but profits in the second half would be impacted by challenging trading in the UK, as well as costs relating to increased innovation.

The confectionery market in the UK is improving and the pre-Christmas selling season is progressing satisfactorily, it added.

It has predicted overall like-for-like revenue growth around the middle of its goal range and underlying margin broadly level with last year.

Meanwhile, Cadbury has confirmed “a significant and deliberate overstatement of the company's financial position over a number of years” in its Nigerian division. The CEO and finance director of Cadbury Nigeria have been relived of their positions and a complete review of the business has started.

“2006 has been a challenging year for Cadbury Schweppes, with very strong performances across large parts of our business largely offset by events in the UK and Nigeria,” said Todd Stitzer, CEO of Cadbury Schweppes.