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An “outstanding” 2009 performance ahead of market expectations reinforces the confectionary company’s bullish attitude.

The ongoing saga between Cadbury and US conglomerate Kraft Foods took a further turn today, when the British confectionary company issued a second statement to describe why the hostile takeover bid by Kraft was ‘derisory’.
 
The statement cited the company’s 2009 performance, which it described as “well ahead of market expectations” thanks to fourth quarter revenue growth. Cadbury confirmed its long-term revenue growth target of 5-7% in remained on course for the year ahead, and that it would be met “through investments in key growth drivers including our emerging market businesses and innovation capabilities.”

Commenting on the 2009 performance, Todd Stitzer, Cadbury’s CEO said: “Our performance in 2009 was outstanding. We generated good revenue growth despite the weakest economic conditions in 80 years.”

Stitzer remained bullish for the company’s long term targets, including revenue growth of up to 18% by 2013.
Roger Carr, chairman of Cadbury, continued to warn shareholders away from Kraft’s hostile takeover. In a statement, Carr said: "Kraft’s Offer is even more unattractive today than it was when Kraft made its formal offer in December. Our 2009 performance is ahead of our previously upgraded expectations and we have excellent momentum going into 2010.”

"Kraft's offer is very significantly below all comparable transactions in the sector; applying any of the comparable multiples would imply a price per share far above Kraft’s offer. Over half the offer consideration is in the form of Kraft shares, exposing our shareholders to Kraft’s low growth conglomerate business model, its long history of underperformance and its track record of missed targets.”

Carr reiterated his position and added: “Don’t let Kraft steal your company with its derisory offer."