Confectionery group Cadbury Schweppes says it is set for its strongest sales growth for a decade.
The maker of Dairy Milk chocolate and Dr Pepper drinks said it was on track to hit the top of its sales growth target of 3 to 5 per cent for 2005 but added it was still unlikely to meet its profit margin goal.
"We are looking forward to reporting our best sales growth for a decade," said chief executive Todd Stitzer after the group issued a trading statement ahead of the full 2005 result due in February.
The company has planned investments in Poland, Mexico and Turkey.
Mr Stitzer declined to give a specific forecast for the group's sales growth this year, but analysts estimated growth around 5.7 per cent, as well as a 25 basis point rise in 2005 operating margins, below its annual target for a 50 to 75 basis point increase.
The group gave a warning on margins in early October after costs rose strongly in the second half, particularly in the United States, due to higher oil prices, hurricane-related disruption and a rise in glass bottle prices after a major supplier filed for bankruptcy protection.
Mr Stitzer said cost pressures would still be very challenging into 2006, but he hoped to offset this with further cost cutting under its Fuel for Growth programme and with price rises.
Cadbury shares were down 0.2 percent at 551 pence by 8.30am, compared with a 0.1 per cent rise in the DJ Stoxx European food and beverage index.