Cadbury Schweppes has admitted that its product recall last June following a salmonella scare has hit UK sales by £35m.
“We estimate that the product recall in the UK reduced revenues and underlying profit from operations by £30m-£35m and £5m-£10m respectively,” the confectionary giant said in full-year results released this morning.
It had previously estimated that the recall would cost £30m.
Pre-tax profit for the year to 31 December fell 12% to £738m, on sales up 4% at £6.628bn. Profit was hit by increased restructuring charges, the cost of the UK product recall and charges in Nigeria.
In confectionary, like-for-like sales growth was 4%, while chocolate sales increased 1%.
“In the UK as a whole, despite the poor third quarter which was impacted by the combination of the hot summer and a product recall, the confectionery market was broadly flat year-on-year,” the group said.
“We estimate that the product recall in the UK reduced revenues and underlying profit from operations by £30m-£35m and £5m-£10m respectively,” the confectionary giant said in full-year results released this morning.
It had previously estimated that the recall would cost £30m.
Pre-tax profit for the year to 31 December fell 12% to £738m, on sales up 4% at £6.628bn. Profit was hit by increased restructuring charges, the cost of the UK product recall and charges in Nigeria.
In confectionary, like-for-like sales growth was 4%, while chocolate sales increased 1%.
“In the UK as a whole, despite the poor third quarter which was impacted by the combination of the hot summer and a product recall, the confectionery market was broadly flat year-on-year,” the group said.
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