Cadbury Reports 6% Sales Increase, Plans to Cut Jobs (Update4)

[UpInArms]

Source: Bloomberg

Oct. 14 (Bloomberg) -- Cadbury Plc, the world's largest candy maker, reported higher third-quarter revenue after adding new varieties of Dairy Milk chocolate in the U.K., and said it will eliminate 580 jobs to cut costs and help meet profitability goals.

Sales rose 6 percent, excluding acquisitions and disposals, in the three months ended Sept. 30, the London-based company said today in a statement. That compared with the first half's 7 percent growth and beat Dresdner Kleinwort's 5 percent estimate.

Cadbury said it expects ``strong profit growth'' this year. U.K. revenue rose 11 percent in the third quarter, helped by the reintroduction of Wispa chocolate bars and a recovery in candy sales after flooding closed a factory last year. The confectioner plans to abandon its four-region operating structure with the loss of about 250 jobs and will eliminate 330 positions over two years at its Australian chocolate manufacturing unit.

``Third-quarter trading is strong,'' analyst Rob Mann at Collins Stewart in London said in a note, adding that growth in Britain was ``especially encouraging.'' ``The reorganizations announced this morning and the willingness to sacrifice senior managers bode well for the vigor with which the measures will be pursued.'' Collins Stewart has a ``buy'' rating on the stock.

<snip>

The 250 jobs being cut as a result of the reorganization include ``a number of senior managers'' and will lead to ``significant cost savings'' from 2009, Stitzer said today.

Read more: http://www.bloomberg.com/apps/news?pid=20601102&sid=akU5DGf3FJ6g&refer=uk

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I hope that everyone around the world stops buying their product because it is obvious that they will only fire more people when they continue to make money, we might as well give them a reason for layoffs - lower sales

[OhioChick]

1. I don't like candy/chocolate, anyway.

I do agree with what you stated. If they're going to cut jobs....give them a reason to.

K&R

[MonteLukast]

6. And make sure it's a GOOD reason.

I'm sure they can make up any number of bullshit reasons... my intuition is telling me that there's an expensive retreat at a Swiss spa in order for the entire executive suite, and Cadbury can't afford both that and jobs.

I'm gonna miss me my Cadbury Mini Eggs at Easter though... :cry:

[OhioChick]

10. Those Easter Eggs make me cringe...

Aren't they the ones with chocolate surrounding what appears to be an egg yolk inside? :puke:

[MonteLukast]

12. Yeah, those are creepy.

Just like that "buck-buck-buck"-ing rabbit. *cringe*

That's why I stick to the non-creepy ones; the ones in a nice little sugar shell.

[marmar]

2. I will, but it will hurt - I love DairyMilk bars.......

but how come the ones in Britain taste better than the ones in the U.S.?

[nosillies]

3. I believe non-pasteurized milk makes the difference n/t

[MonteLukast]

7. So that's it? I always did think the British Cadburys tasted like honey or salt.

I adore salted caramels, for example. I love that extra depth of flavor.

[CountAllVotes]

4. lack of melamine?

:sarcasm:

[MonteLukast]

9. Hmmm. Maybe try Scharffen Bergers?

They seem to be the closest in flavor to Cadburys.

[metapunditedgy]

13. bought by Hershey's... the Wal-Mart of chocolate... n/t

[MonteLukast]

14. Not necessarily

Hershey's a big company that functions like a Small-Mart, according to one of my favorite books. (Though I do wonder if they recently got new leadership that is more TINA*-like, in the light of some of their latest business decisions.)

*TINA = There Is No Alternative, the preferred model of large, multinational, faceless corporations, also known as "only the big boxes survive"

[Psephos]

15. Let's hear it for the singulairity

I'm off-topic for everyone but you, ML.

[kentauros]

17. There's always ricemilk chocolate bars

:)

They are quite good, actually. Here's the brand and link:

Terra Nostra Chocolate - Ricemilk Choco Bar

[drmeow]

5. Let's hear it for a Cadbury boycott! n/t

[OwnedByFerrets]

8. F*ck profitability and production increases at the cost of

workers jobs and free time.

[Lautremont]

11. I was going to name my butler Cadbury, but now I'm thinking twice.

[Purveyor]

16. Melamine Contamination In Cadbury Chocolates Made In China

While the European Union and its 27 member nations have taken steps to ban or limit milk products from China, now British candy maker Cadbury says it’s recalling 11 different types of Chinese-made chocolates found to contain the plastic component, melamine.

Cadbury says the only goods affected are those made in the Beijing factory and not the chocolates produced in the UK or elsewhere.

Suppliers may have added melamine to the chocolates which have been distributed to Taiwan, Hong Kong and Australia.

http://www.injuryboard.com/national-news/Melamine-Contamination-In-Cadbury-Chocolates-Made-In-China.aspx?googleid=248390

[JCMach1]

18. Exactly, they USED to be good... Quality has gone way down

in recent years.

[MrsBrady]

19. sales were up -- does this mean that more people ate those melamine chocolates from china? n/t

[depakid]

20. LOL. There's actually another explanation

During hard times, sales of things like chocolate, alcohol and tobacco tend to rise.

[boilinmad]

21. There's just never enough money..

....for the almighty share-holder.

[Dont_Bogart_the_Pretzel]

22. Interesting, as expensive as Cadbury is,

the more the layoffs (all over), the less Cadbury will sell. Then they won't make any profits.