DAIRY Milk maker Cadbury said yesterday that higher prices left it on course to beat targets for the first six months of the year.
The group, which rebranded from Cadbury Schweppes earlier this month after spinning off its drinks arm, has been upping its prices to combat soaring commodity costs this year.
Cadbury, the world's second-largest confectionery firm, said interim re
venues growth was on track to be above management goals of between 4 per cent to 6 per cent. Cadbury shares rose 5 per cent as investors cheered the upbeat performance.
The group has sought to push through higher prices to combat 5 per cent to 6 per cent rises in commodity costs, but to the detriment of its market share.
Cadbury revealed that it had lost ground to rivals over Easter after holding back price cuts, although it still banked a 3 per cent rise in first-quarter UK revenues.
The firm added that the sales growth was being driven by a recent concerted marketing push, led by last year's cult hit advertisement featuring a gorilla drumming to Phil Collins' In the Air Tonight song and more recently an ad showing racing airport trucks.
It is also in the middle of a cost-cutting programme, with plans unveiled last June to axe 7,800 jobs and close 15 per cent of its factories worldwide. The proposals included axing 500 jobs at the company's historic site at Keynsham, near Bristol.
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