Cadbury Schweppes has reported a 2% drop in full-year underlying pre-tax profit to £915m on revenue up 7% at £7.97bn.

In Britain, Cadbury Schweppes said revenues increased 5% for the year to 31 December, boosted by a good recovery in chocolate following last year's product recall.

Revenues in the second half of the year also benefited from the relaunch of Wispa in October and its drum-playing gorilla advertising campaign for Cadbury Dairy Milk, Cadbury added.

The demerger of its confectionery business and US soft drinks division was continuing, with completion expected in the second-quarter of the year.

Cadbury Schweppes also confirmed deputy chairman Roger Carr would replace Sir John Sunderland as chairman of Cadbury. Wayne Saunders will chair the US soft drinks business Dr Pepper Snapple Group.

“Although the economic outlook for 2008 remains uncertain, we are encouraged by the good trading momentum we have seen in the new year and our continued progress on cost reduction initiatives,” said CEO Todd Stitzer. “We expect meaningful margin progression in 2008.”