Cadbury Schweppes said underlying results for the full year would be broadly in line with the first half but currency movements would shave 2% off earnings.

Chief executive Todd Stitzer said Cadbury Trebor Bassett in the UK was having a strong fourth quarter in the run-up to Christmas following the relaunch of its Dairy Milk range.

In the US, improved share trends in carbonated drinks have been led by Dr Pepper. But Cadbury said performance of its drinks business Stateside was hit by an industry-wide slowdown and by changes to the distribution arrangements for 7-Up.

Cadbury expects to spend £500m in 2003 on its 'Fuel for Growth' initiative to reduce supply chain, commercial and administrative costs.