Cadbury in profits boost

Cadbury, the West Midlands-based chocolate maker, has played a key role in boosting profits for its new owner, Kraft.

The Dairy Milk maker, with its home in Bournville, Birmingham, helped revenues surge more than 34 per cent in the last three months to £7.75 billion. Without the Cadbury performance it would have been two per cent.

Kraft revealed that its £11.7 billion takeover of West Midlands-based Cadbury had helped it post higher-than expected profits.

It was despite a decline in its own North American sales in the three months.

Cadbury accounted for 90% of the 25% rise in Kraft's revenue to £7.75 billion, boosting earnings by 13% to £590.1 million.

The American group, whose other brands include Maxwell House coffee and Oreo cookies, said net revenues from Kraft Foods slipped 1.9% in North America due to weak consumer conditions and aggressive promotional activity by rivals.

Cadbury, whose brands include Dairy Milk and Green & Blacks, saw revenue growth in the region of 7.5% over the same period after successful new launches for gum brands Trident and Dentyne.