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Drinks and confectionery giant Cadbury Schweppes has reported a nine per cent drop in profit before tax to £670 million in its final results for 2007, as restructuring costs and an unfavourable exchange rate hit the bottom line.

Earnings per share were 19.4p, against a strong 2006 comparative of 56.4p, reflecting the profit from the disposal of its European, South African and Syrian beverage businesses.

But the company said it is confident of future earnings and is raising the final dividend by six per cent to 10.5p, bringing the total dividend for the year to 15.5p.

The group is coming to the end of a restructuring programme that will this year see it demerge into Cadbury and Dr Pepper Snapple Group, Inc (DPSG).

Cadbury Schweppes said current market conditions have made it difficult to raise new debt to finance the separation and as a result, there will be no capital return to shareholders on completion.

The company also named the chairmen of the new companies.

Roger Carr, currently deputy chairman, will be appointed chairman of Cadbury, while Wayne Sanders, former president and CEO of Kimberly-Clark, will be appointed chairman of Dr Pepper Snapple Group.

Todd Stitzer, Cadbury Schweppes chief executive, said: "As the business prepares for demerger, we believe the initiatives taken in recent years to invest in core brands, reduce costs and strengthen its route to market gives the business a strong platform for its future success as an independent company."

Over 2008, the company said it would raise prices to offset higher commodity costs and expected revenue growth in both its confectionery and drinks businesses.