Pre-tax profit for the half-year to 30 June fell from £105m to £69m on sales up 6% at £2.3bn.
In the UK, sales rose 2%, boosted by the launch of Trident gum in February, although its share of the total confectionery market fell by 120bps due to a nut labelling recall and a decision not to take part in aggressive discounting in the grocery trade.
The group also warned its UK candy share would be adversely impacted by the floods in June which forced the temporary closure of its factory in Sheffield. Manufacturing had now resumed on a limited number of lines and production was expected to increase over the coming weeks, Cadbury said.
The group added that it was fully prepared to demerge its Americas Beverages business if debt markets conditions did not “stabilise sufficiently”. Last week, Cadbury extended the sale of the business because of volatile debt markets.
“First half revenue growth was strong, driven by investment in brands, innovation and market-place execution,” said CEO Todd Stitzer. “We expect continued growth in the second half, while margins will be impacted by the combination of growth investment and higher inputs.”