Cadbury Reports Excellent Third Quarter in 2009

The Highlights

• Third quarter revenue growth of 7% in constant currency
• Excellent growth in Britain & Ireland (up 10%) and emerging markets (South America up 18%, Asia and Middle East and Africa up 14%)
• Year to date underlying operating margin growth of over 180 bps underpinned by a strong third quarter
• Improved momentum increases our confidence in good revenue growth in 2010 and 2011

Todd Stitzer, Cadbury’s CEO said: “We have great momentum in our business and our confectionery strategy continues to yield benefits beyond expectations. In the third quarter we have delivered growth in every category and every business. At the same time, we have maintained our investments in innovation and marketing to reinforce our commitment to delivering future growth.

As a result, despite lapping strong fourth quarter comparatives from 2008, we are increasing our guidance for revenue growth to be around the middle of our 4-6% goal range for the year as a whole and our underlying operating margin improvement to be at least 135bps in constant currency in 2009.”*

Roger Carr, Chairman of Cadbury, added: “The strength of our operating performance continues to underpin the Board's confidence in both our growth prospects and the potential for creating further, material shareholder value as a pure play standalone confectionery business".

Except where stated, all percentages and comments on movements in revenue and margins relate to the group’s continuing operations, are calculated using constant currency and exclude the impact of acquisitions and disposals. Underlying operating margin is calculated as underlying profit from operations as a percentage of revenue.

* This statement includes a profit forecast (the “Profit Forecast”) for the purpose of Rule 28 of the City Code. As such, it is a requirement that this statement be reported on by the Company’s reporting accountants and financial advisers in accordance with Rule 28 of the City Code. The bases and assumptions behind the guidance statements can be requested by contacting jo.johnson@srg.co.uk. The reports of the reporting accountant and financial advisers can also be located via the same channel. The reporting accountant and financial advisers have given and not withdrawn their consent to publication.