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Cadbury Schweppes plc reports on financial performance for the 53 weeks ended 2 January 2005:

#  Constant currency growth excludes the impact of exchange rate movements during the period (see note 3 page 10)
##  Excluding the estimated impact of sales and profits in the 53rd week (see note 3 page 10)
*  Base business excludes the impact of acquisitions and disposals (see note 3 on page 10)
**  Both underlying profit before tax and underlying earnings per share (EPS) include associates, exclude goodwill/intangibles amortisation and exceptional items (see notes 7 and 8 on page 17 for a reconciliation to profit before tax and earnings per share)

2004 Highlights

• Results within goal ranges: base business sales +4%; operating margins +50 basis points; free cash flow generation of £265 million (£229 million at actual rates)
• Confectionery sales +6% driven by innovation and a strong holiday season performance 
• Adams' results ahead of acquisition case: double-digit growth in Trident and Dentyne
• Beverage sales +2%: strong growth in US carbonated soft drinks led by Dr Pepper and diets offset by impact of cold summer in Europe
• Fuel for Growth cost reductions successfully implemented: savings in line with plan

Todd Stitzer, Chief Executive Officer said: "2004 was a good year for Cadbury Schweppes with excellent progress in key markets, particularly the US. We successfully built sales momentum in beverages and confectionery while integrating Adams and implementing major cost reduction programmes.

"In 2005, we will build on progress made in 2004 by increasing investment in marketing, innovation and science & technology. We have good momentum and Fuel for Growth cost reductions will deliver further significant savings. While the external commercial environment remains competitive, we are confident that we have the strategy, brands and people to deliver within our goal ranges in 2005."

Basis of Preparation

53rd Week

In 2004, Cadbury Schweppes had an additional week's trading: the statutory results for 2004 are for the 53 weeks to 2 January 2005 and the statutory results for 2003 are for the 52 weeks to 28 December 2003. The extra week resulted in additional turnove53rd Weekr and operating profits for 2004 compared to 2003. In order to provide more meaningful comparisons estimates of the additional sales and profit generated in the 53rd week have been excluded from the analysis of base business. Management believes this provides the most consistent underlying 52 week like-for-like analysis. It is not possible to quantify the exact profit impact of the 53rd week and in determining the impact, management has had to exercise judgment. (See note 3, page 10)

Impact of Exchange

RatesOver 80% of the Group's sales and profits in 2004 were generated outside the United Kingdom. The impact of exchange rate movements on the Group's Profit and Loss Account and free cash flow generation are shown separately. In 2004, movements in exchange rates, primarily the US $, reduced the Group's sales by 4%; underlying pre-tax profit by 7%; underlying earnings per share by 7%; and free cash flow by 16%.

PERFORMANCE OVERVIEW

2004 was a good year for Cadbury Schweppes with progress made against the Group's goals and priorities.

We delivered results within our financial goal ranges:

• Like-for-like sales growth of 4%*
• Underlying operating margins ahead by 50* basis points
• Free cash flow generation of £265* million

(* at constant exchange rates)

These results were achieved while we integrated our largest ever acquisition (Adams), executed major cost reduction projects and experienced cost increases well above the rate of inflation. We also increased investment in our brands with our marketing to sales ratio ahead by 20 basis points.

Our Fuel for Growth initiative delivered cost benefits of around £75 million during the year, in line with expectations. This brings the cumulative gross cost savings to £100 million since the initiative started in mid-2003.

Our confectionery businesses around the world had a successful year with like-for-like sales growth of nearly 6% led by our core brands including Cadbury, Trident and Halls, and a strong year-end holiday season. We grew or maintained our share in most of our key markets.

The Adams business is exceeding our expectations, with sales and profits in 2004 higher than the acquisition case driven by strong category growth, increased innovation and marketing investment.  Markets identified as underperforming at the time of acquisition, notably Brazil and Japan, have been turned around. The cost synergies are being delivered in line with plan and we are beginning to see benefits from revenue synergies.

Our Smart Variety commercial discipline enabled the Group to leverage more effectively its brands, technologies and routes to market around the world during 2004.

We saw a significant improvement in our beverage business with sales rising by 2% year-on-year. Growth would have been approximately 3% excluding the impact of a poor summer in Europe. Our US carbonated soft drinks ("CSD"), Mexican and Australian soft drink businesses produced strong results.

The integration of our North Americas beverage business into a strengthened commercial entity was successfully completed during the year, driving both top-line and margin benefits. Our CSD business outperformed the market, with sales growth of 5% during the year, led by our flagship Dr Pepper brand and our diet portfolio.  In the second half, we relaunched our Mott's and Snapple non-carbonated brands with encouraging early results.

The integration of Europe Beverages progressed to plan during the year with notable achievements being the commercial and supply chain integration of the Orangina and Schweppes businesses in France and our distribution systems in Spain.

Investment in enhancing the capabilities of the Group to generate growth focused on innovation and systems. The focus on innovation saw a significant increase in new product launches. As a result, the proportion of sales represented by innovation rose from 6% to 9%.

We continued to upgrade our systems, with a number of major implementations successfully completed in US CSD business, Ireland, Japan and South America. We also created a new back-office and logistics infrastructure in our US confectionery business.

We reinforced our reputation with our employees and communities in which we operate by aligning our rewards with our new goals and priorities; further strengthening our understanding of and response to concerns about the role of food in public health; and embedding our corporate and social responsibility policies and programmes around the world.

2005 Outlook

In 2005, we expect to deliver within our Goal ranges for sales and margin growth for the year as a whole on a 52 week basis and to see an uplift in free cash flow generation in line with our goal of generating £1.5bn of free cash flow over the 2004 - 2007 period.

We have good sales momentum across the business. In confectionery, while we expect continued good growth for the year as a whole, in the first half we will be implementing major new systems in our UK and Canadian confectionery businesses. In beverages, we expect our CSD portfolio to perform well but sustaining the outstanding growth rates we saw in 2004 will be challenging. Our non-CSD portfolio in North America and our European beverage business are expected to have a better year. 

Fuel for Growth cost savings are expected to be in the region of £100 million. Raw material costs are not expected to rise as sharply as they did in 2004. We will, however, be investing more heavily behind the long-term growth of the business, building on the successes we had last year. This increase in investment will be weighted toward the first half of the year. 

OPERATING REVIEW

Americas Beverages

Overall 2004 was a better year for our beverage business in Americas Beverages with the good momentum we saw in the early part of the year continuing throughout the second half. Like-for-like sales growth of 2% was driven by our US carbonates business, where sales were 5% ahead.

The organisational and leadership changes made in 2003 are having a positive impact on performance. The top line benefited from cross-selling by a unified sales force and higher quality, more focused brand marketing investment and innovation. Cost savings were delivered in line with plan although higher employee, system and transport costs, offset a proportion of the benefit.

We outperformed the US carbonated soft drinks market with performance once again led by Dr Pepper (volumes +3%) and our portfolio of diet brands (volumes +19%). The performance of 7 UP improved in the second half following the successful launch of 7 UP Plus. 7 UP volumes were down 4% in the second half following a 9% decline in the first half.

We saw some improvement in our core non-carbonate brands in the US in the fourth quarter, led by Mott's. Our Mexican business had another excellent year with sales ahead by 16% led by Penafiel.

The region successfully implemented three major systems related projects during the year: the roll-out of PROBE in our carbonates business; the consolidation of our non-carbonates business onto a single IT platform; and the creation of a US Shared Business Service infrastructure for both our beverage and confectionery operations.

Americas Confectionery

Our confectionery business in the Americas had an excellent year with like-for-like sales ahead by 10%. This growth was driven by the combination of buoyant markets, higher prices and by a significant step-up in innovation, mainly on core brands. Our four power brands in the region - Trident, Halls, Dentyne and the Bubbas bubblegum range - grew sales in total by 13%.

In the US and Canada, strong growth in the market coupled with share gains during the year, drove double-digit like-for-like top-line growth on gum. In Latin America, sales were 14% ahead in Mexico and up 22% in Brazil.

Margin improvements were delivered from a combination of Fuel for Growth savings, improvements in price and mix and lower trade spend. 

In the US, the transition off Pfizer shared services was delivered on time and within budget. SAP was installed in a number of Adams markets in South America allowing us to consolidate back offices. The sales forces were reorganised in the US, Canada and Brazil.

Europe, Middle East and Africa (EMEA)

The region had a good year with sales up 4% on a like-for-like basis. Sales momentum built during the year with a strong Christmas resulting in second half sales growth of nearly 7% of which 1% came from the recovery from a hot summer in 2003. This good performance was broadly based - markets and categories.

Growth in chocolate was driven by Cadbury in the UK and South Africa, Poulain in France and Wedel in Poland. Growth in sugar was driven by Halls around the region and Kent in Turkey. Growth in gum was driven by Hollywood in France, Trident in Spain and Dirol in Russia.

In the UK, we maintained share in a market which grew by 3.5% in value terms (Source: Nielsen), a good result given that the business was cycling the highly successful relaunch of our Cadbury Dairy Milk brand in the fourth quarter of 2003. We had a strong fourth quarter driven by a good Christmas and successful new product launches, notably Cadbury Snaps and Cadbury Flake variants.

In France and Spain, gum share continued to grow on the back of new product introductions and increased marketing spend. In France, market shares in chocolate and sugar benefited from multi-category activities with our major customers.  While Ireland's sales were down year-on-year, the second half was much improved.

We saw continued strong top-line growth in our developing markets within the region with sales ahead by 10%. In Russia, performance of the business improved following a restructuring and management changes.

Europe Beverages

2004 was not an easy year for our Europe Beverages region. The markets were weak due to the impact of poor summer weather on demand in the third quarter, notably in France, and intense price pressure in Germany. We lost share in our three key markets of France, Spain and Germany.

Despite the reduction in sales, margins benefited from Fuel for Growth cost savings and an improved supply chain performance in Spain and France.

In the second half a number of organisational and management changes were made designed to upgrade our capabilities in our main markets and stream-line decision-making. We are beginning to see some early impact of these changes.

Asia Pacific

We continued to see good sales momentum with like-for-like growth of 6% during the year. The contribution from acquisitions includes the Adams' business in China which was acquired in March 2004. The business made a small loss during the year.

Our beverage business in Australia had a very good year with sales up by 12% and market shares well ahead. The business benefited from the creation of a powerful integrated confectionery and beverage sales force early in the year.

Sales growth in chocolate was driven by continued momentum in our Australian business and by recovery in India. In gum and medicated, performance was strong in the Adams' markets of Thailand and Japan. Halls grew strongly in India where it is being distributed through Cadbury India's strong distribution system.

Margins were lower year-on-year due to the combination of adverse mix and increased investment in China, India and regional capabilities. 

Adams

The performance of the Adams business is exceeding our expectations with sales and profits in 2004 ahead of the acquisition plan. In 2004 the business generated sales of £1,170 million and profits of £155 million, increases of 12% and 45% respectively versus 2003 at constant exchange rates. The performance was driven by strong category growth, increased innovation and marketing investment.  Markets identified as underperforming at the time of acquisition, notably Brazil and Japan, have been turned around. The cost synergies are being delivered in line with plan and we are beginning to see benefits from revenue synergies.

Fuel for Growth

In 2004, Fuel for Growth projects generated £75 million of gross savings, in line with expectations. Savings were principally generated from projects associated with the integration of Adams and from the integration of our North Americas Beverages businesses.

The cumulative savings since the initiative began in mid-2003 are £100 million compared to expected total cost savings of £400 million by 2007. We expect to achieve cost savings of around £100 million per annum over each of the next three years. We now anticipate that the investment required to deliver the £400 million of cost savings will be £800 million, £100 million less than originally forecast.

FINANCIAL REVIEW

Sales at £6.7 billion were 5% higher than last year, and 9% above prior year at constant exchange rates. Acquisitions, net of disposals, contributed 4% to revenue growth. The most significant contributor to growth from acquisitions was Adams. The base business grew sales at 5% (at constant currency) of which an estimated 1% was due to the 53rd week of trading.

Marketing expenditure during the year was £740 million, an increase of 5% over last year and an increase of 11% at constant exchange rates.  This represents a marketing to sales ratio of 11.0%, a 20 basis point increase over prior year at constant exchange rates.

Central costs rose by £6 million or 5% to £133 million reflecting higher depreciation costs in respect of our investment in IT systems. 

Underlying operating profit excluding associates (operating profit before goodwill/intangibles amortisation and exceptional items) was up 6%. At constant currency the growth was 12%. The 53rd week contributed an estimated £11 million or 1% of underlying operating profit.

Underlying operating margins rose from 16.3% to 16.5%.  Excluding the impact of exchange rate movements, underlying operating margins rose by 50 basis points. The dilution of margins due to exchange rate movements reflects the impact on overall Group margins of the weaker dollar on the translation of our carbonates business in the US.

Income from associates at £44 million was £7 million lower than in 2003, with the year-on-year reduction mainly reflecting adverse exchange rate movements, primarily the US dollar and Nigerian Naira.

The Group charge for operating exceptionals of £171 million was £53 million lower than last year. Operating exceptionals in respect of business restructuring was £140 million compared with £184 million last year. In 2004, all of the restructuring relates to our Fuel for Growth cost reduction initiative. In 2003, £162 million of our restructuring costs was related to Fuel for Growth projects.   Operating exceptionals in respect of asset impairments were £31 million compared with £40 million in 2003. The charges in 2004 and 2003 relate to our PROBE information systems. In 2005, we expect operating exceptionals to be around £100 million reflecting the restructuring activities associated with our ongoing Fuel for Growth cost reduction initiative.

Goodwill/intangibles amortisation at £139 million was £10 million higher than last year, reflecting a full year charge for the acquisition of Adams.

The interest charge was significantly higher at £226 million compared to £181 million in 2003. This reflects the cost of financing the Adams acquisition for a 12 month period compared to 9 months in 2003, and the lengthening of our borrowing profile as we moved the balance of our debt from shorter-term bank debt and commercial paper into longer-term bonds. The estimated charge for the 53rd week was £4 million.

Underlying profit before tax (profit before tax and goodwill/intangibles amortisation and exceptional items) rose by 1% to £933 million and by 8% at constant exchange rates. The 53rd week contributed an estimated £7 million to underlying profit before tax.

Reported profit before tax rose by 14% to £642 million reflecting lower restructuring costs. The underlying tax charge was 26.8% as against 27.5%. We expect the underlying tax rate in 2005 to be 28% with the increase mainly due to a change in the geographical mix of profit generation. The estimated contribution to reported profit before tax from the 53rd week was £7 million.

Underlying earnings per share (earnings before goodwill/intangibles amortisation and exceptional items) at 32.6 pence were 2% ahead of last year. At constant exchange rates, underlying earnings per share were up 9%. The 53rd week contributed an estimated 0.3 pence to earnings or 1%.

Basic earnings per share (after goodwill/intangibles amortisation and exceptional items) rose by 17% to 21.3 pence principally reflecting the reduction in exceptional items (driven by business restructuring). The 53rd week contributed an estimated 0.3 pence to basic earnings per share.

Capital Spend
Net capital spend was £259 million, a £26 million decrease on prior year. Gross capital spend was £285 million, a decrease of £17 million on 2003.

Cash Flow
The Group generated free cash flow (after dividend payments) of £229 million, an increase of £57 million compared to 2003.  Exchange rate movements reduced the Group's free cash flow by £36 million. The improvement in free cash flow reflects the increase in profits and lower capital spend. At the year end the Group's net debt stood at £3.9 billion, a £341 million reduction on 2003.

Dividends
The Board has proposed a final dividend of 8.70 pence, up from 8.35 pence in 2003, an increase of 4%. This will be paid on 27 May 2005 to Ordinary Shareholders on the Register at the close of business on 29 April 2005.

IFRS
We estimate that the impact of adopting IFRS on the 2004 reported results, will be a reduction in underlying profit before tax (profit before tax, goodwill/intangibles amortisation and exceptional items) of approximately 5%, principally reflecting the incremental share awards charge under IFRS 2 and higher pension costs under IAS 19. The estimated impact on underlying earnings per share (earnings before goodwill/intangibles amortisation and exceptional items) is around 6% reflecting uncertainty of tax deductability of share awards in overseas territories. These estimates exclude the mark-to-market effect of IAS 39 on financial instruments which we are not required to apply to the 2004 restated results and will not be included in underlying earnings per share.  

Report and Accounts
The Report and Accounts will be mailed to Shareowners on 11 April 2005. The Annual General Meeting is on 19 May 2005. 

Press Release Schedules

2004 Prelim Results Press Release Schedules

1. About Cadbury Schweppes

Cadbury Schweppes is a major international Group which manufactures, markets and distributes branded beverages and confectionery products around the world.  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 50,000 people and is a leading world-wide confectionery concern.  It is number one in sugar and functional confectionery, a strong number two in gum and the world's third largest soft drinks group.

2. Cadbury Schweppes' Financial Goal Ranges

In pursuit of the Group's goal of superior shareowner returns, three external financial performance goal ranges have been set for the 2004-2007 period.  These are:
- Turnover growth of between 3% and 5% per annum excluding the impact of acquisitions at constant currency
- Underlying operating margin growth (before goodwill/intangibles amortisation, exceptional items and IFRS adjustments) of between 50 and 75 basis points per annum at constant currency
- Free cash flow (as explained on page 17 of our Report & Accounts and Form 20-F) totalling £1.5 billion at constant currency over the four year period. Cadbury Schweppes' definition of free cash flow is after the payment of dividends.

3. Basis of Preparation

53rd Week

In 2004, Cadbury Schweppes had an additional week's trading: the statutory results for 2004 are for the 53 weeks to 2 January 2005 and the statutory results for 2003 are for the 52 weeks to 28 December 2003. The extra week resulted in additional turnover and operating profits for 2004 compared to 2003. In order to provide more meaningful comparisons, the additional sales and profit generated in the 53rd week have been estimated.  The additional turnover realised due to the 53rd week has been calculated from the Group's underlying reporting systems for those extra shipping days within the final week of the year. Management believes this provides the most consistent underlying 52 week like-for-like analysis. It is not possible to quantify the exact profit impact of the 53rd week and in determining the impact, management has had to exercise judgment. Operating costs have been allocated on a reasonable and consistent basis across the Group. These costs include direct costs allocated as a determinable gross margin percentage consistent with base business, costs separately identifiable as relating to the 53rd week and indirect costs pro-rated with additional days of sales. Interest has been adjusted for on a pro-rated basis. These adjustments have been tax effected at the Group's underlying effective tax rate for the year.

Impact of Exchange Rates

Over 80% of the Group's sales and profits in 2004 were generated outside the United Kingdom. Constant currency growth was calculated by applying the 2003 exchange rates to the 2004 reported results for the base business (excluding acquisitions).

Acquisitions

The contribution from acquisitions during the period equates to the first twelve month's 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.

The most significant acquisition during 2003 and 2004 which has impacted the year-on-year  comparatives, is the Adams confectionery business, which was completed in March 2003.

2004 Prelim Results Press Release Schedules

Forward Looking Statements

This material may be deemed to include forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.  These forward-looking statements are only predictions and you should not rely unduly on them.  Actual results might differ materially from those projected in any such forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by the forward-looking statements.  In evaluating forward-looking statements, which are generally identifiable by use of the words "may", "will", "should", "expect", "anticipate", "estimate", "believe", "intend" or "project" or the negative of these words or other variations on these words or comparable terminology, you should consider various factors including the risks outlined in our Form 20-F filed with the SEC.  Although we believe the expectations reflected in forward-looking statements are reasonable we cannot guarantee future results, levels of activity, performance or achievements.  This materials should be viewed in conjunction with our periodic interim and annual reports and registration statements filed with the Securities and Exchange Commission, copies of which are available from Cadbury Schweppes plc, 25 Berkeley Square, London W1J 6HB, UK.

A presentation on the results will be webcast live on this website at 09.30 a.m.  Copies of the slides accompanying the presentation will be available on the website on 23 February from 11 am.

The analyst conference call will be audio webcast live and archived on this website.

High-resolution photographs are available to the media free of charge from 1.30 p.m. today at www.newscast.co.uk +44  (0)20 7608 1000.