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Cadbury Schweppes plc reports on financial performance for the 6 months ended 30 June 2007. In accordance with IFRS 5, Americas Beverages is classified as a discontinued operation. Discontinued operations in 2006 also include the profit on the sale of Europe Beverages. Revenue, Profit from Operations and Profit before Tax for the 6 months to 30 June 2006 and 2007 disclosed below exclude Americas Beverages.

First Half 2007 Highlights

• Revenue growth +6%: continued double-digit growth in gum and emerging markets
• Focus brands +9% with Trident +27% and Halls +7%
• Underlying base business margins -30bps: reflecting continued investment in growth
• Dividend up 22% at 5.0p
• Exchange movements reduced revenues by 5% and underlying earnings by 10%
• Americas Beverages trading in line with expectations
  (except where stated all movements are at constant exchange rates)

Todd Stitzer, Chief Executive Officer said: "First half revenue growth was strong driven by investment in brands, innovation and market-place execution.  We expect continued good revenue growth in the second half, while margins will be impacted by the combination of growth investment and higher input costs. Our team remains focused on delivering the unexploited potential of our portfolio."

1 Cadbury Schweppes believes that underlying profit from operations, underlying profit before tax, underlying earnings and underlying earnings per share provide additional information on underlying trends to shareholders. The term underlying is not a defined term under IFRS, and may not be comparable with similarly titled profit measurements reported by other companies. It is not intended to be a substitute for, or superior to, IFRS measurements of profit. A full reconciliation between underlying and reported measures is included in the segmental analysis on pages 17 and 18 of our full 2007 interim results press release.

2 From 2007, ongoing business improvement costs of approximately 0.5% of revenue are included within underlying profit from operations. In 2006, there were no ongoing business improvement costs as all restructuring costs were incurred as part of the Fuel for Growth programme and as such were reported outside of underlying profit from operations.

3 Constant currency growth excludes the impact of exchange rate movements during the period (see note 3: Basis of Preparation page 12 of our full 2007 interim results press release)

Basis of Preparation

Further explanation of the basis of preparation is included in Note 3: Basis of Preparation on page 12 of our full 2007 interim results press release. A summary is set out below:

• On 15 March 2007, the Group announced the intention to separate the Americas Beverages business. The status of the separation project at 30 June 2007 meets the IFRS 5 "Non-current assets held for sale and discontinued operations" criteria requiring the business to be classified as a discontinued operation. The prior period has been re-presented on a consistent basis.
  
• From 2007, ongoing business improvement costs of approximately 0.5% of revenue are included within underlying profit from operations. In 2006, all restructuring was reported outside of underlying operating profit.

Comments on the Group and regional performances in the commentaries on pages 2 to 7 of the of our full 2007 interim results press release are made on the continuing business, excluding discontinued operations. Comments on movements in revenues, underlying profit from operations and margins are made on a constant exchange rate basis. In the first half of 2007, movements in exchange rates, primarily the US Dollar, the Australian Dollar and the South African Rand reduced Revenue by 5%, Underlying Profit before Tax by 11% and Underlying EPS by 10%.

• DOWNLOAD OUR FULL 2007 INTERIM RESULTS PRESS RELEASE
  
• CLICK HERE TO VIEW OUR 2007 INTERIM RESULTS WEBCAST

1. About Cadbury Schweppes

Cadbury Schweppes is the world's largest confectionery company and has strong regional beverages businesses in North America and Australia. With origins stretching back over 200 years, today Cadbury Schweppes' products - which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the world.  The Group employs over 70,000 people. 

2. About Cadbury

On 19 June, 2007, we announced a new strategy for our ongoing confectionery business post the separation of Americas Beverages.  Our goal is to leverage our scale and advantaged positions to maximise growth and returns by:

• Driving growth through a concentration on "fewer, faster, bigger, better" participation and innovation, supported by our global category structure introduced last year;
• Driving cost and efficiency gains to increase margins; and
• Continuing to invest in capabilities to support our growth and efficiency agendas.
  

Our Financial Scorecard

Our ambition to maintain revenue growth while improving margins and returns is reflected in our new financial scorecard for the 2008 to 2011 period:

• Annual organic revenue growth of 4-6%
• Total confectionery share gain
• Mid teens trading margin by 2011
• Strong dividend growth
• Efficient balance sheet
• Growth in return on invested capital

Commercial Strategy: Focus on Top Markets, Brands and Customers

To help drive further revenue growth, under a new category management structure, we are focusing our resources on a fewer number of markets, brands and customers:

• Our 12 focus markets include the UK, US, Australia, Mexico, Brazil, India and Russia.  Together, these markets represent around 70% of our total revenues and are forecast to account for over 60% of expected category growth over the next five years.
• Our 13 focus brands, include our biggest brands such as Cadbury Dairy Milk, Trident, Halls, Dentyne and Flake and our newer fast growing brands, Green & Black's and The Natural Confectionery Company. Together, our 13 focus brands account for over 50% of our confectionery revenues and have above average revenue growth and operating returns.
• Our 10 focus customers comprise 7 top retailers (including WalMart, Tesco, Carrefour and Lidl) and 3 trade channels (impulse in developed markets; traditional trade in emerging markets; and international travel retail). Together, these customers account for over 50% of our revenues.

3. Basis of Preparation

Impact of Exchange Rates

Over 80% of the Group's sales and profits are generated outside the United Kingdom. Constant currency growth was calculated by applying the 2006 average exchange rates for the half year to the 2007 reported results for the base business (excluding acquisitions).

Acquisitions and Disposals

The contribution from acquisitions and disposals during the period equates to the first twelve months' impact of businesses acquired or disposed of in the current and prior year. Once an acquisition or disposal has lapped its acquisition date then it is included within the base business results.