[R]9:00AM New York-Cadbury Schweppes reported annual profit before tax declined 2% from £670 million to £738 million as restructuring costs and the impacts of the exchange rates offset revenues.[/R]

Annual Earnings Review

Cadbury Schweppes reported annual revenues rose 7% from £7.4 billion to £7.9 billion on 7% growth in base business revenues in the confectionery unit driven by emerging markets and 4% growth in revenues in Americas beverages.

In the fiscal year, profit before tax declined 2% to £670 million fro m £738 million reported in 2006. Underlying earnings per share were also down 4% to 30.2p from 31.6p a year ago.

Also profit from operations slumped to £787 million from £909 million.

The company also reported that annual dividend climbed 11% from 14 pence to 15.5 pence.

Business Segment Review

Confectionery Business

Annual revenues in the confectionery business edged up 7% to £5 billion from £4.8 billion a year ago as gum and emerging markets were characterized by double-digit growth.

In developed markets, revenues were up 4%, while in emerging markets revenues rose 14%.

During the year, the company acquired Intergum in Turkey and Sansei in Japan which ultimately strengthened the company’s position.

Operating profit in the division also climbed 11.9% to £497 million from £489 million last year.

Cadbury Dairy Milk revenues rose 5% on strong growth in Britain and in emerging markets.

Americas Beverages

Base revenues in the division increased 4.4% year-on-year from £2.5 billion to £2.8 billion. Acquisitions and disposals contributed 16% of revenues at £403 million.

Carbonates revenues rose 1% in the U.S. and the CSD market rose by 40 basis points notwithstanding the 2.5% volume decline in Dr Pepper and 3% drop in 7 Up.

The launch of Snapple super premium teas and juices spurred revenues in the non-CSD unit by 3%.

However, the sport beverage brand Accelerade, launched during the year, had a £30 million loss.

Operating margins also increased to 22.8% from 19.2% after the company’s contract to manufacture and distribute Glacéau was terminated after Coca Cola acquired Energy Brands.

Cadbury also acquired independent bottler SeaBev during the course of the year, a development which is expected to augment revenues in the U.S.