Financial Review

Europe, Middle East and Africa (EMEA)

£ millions	2004 (52 weeks)	Base Business	Acquisitions/ Disposals	Exchange	2005
Revenue	2,228	88	(12)	29	2,333
- year-on year change		+4%	+0%	+1%	+5%
Underlying Profit from Operations	320	12	1	3	336
- year-on year change		+4%	+0%	+1%	+5%
Underlying Operating Margin	14.4%				14.4%

The 4% increase in revenues in the EMEA region was driven by our emerging market businesses in Africa and Russia, which in total grew by 11%. Developed market sales were modestly ahead reflecting the difficult retail environment in Continental Europe, particularly in France, and the planned reduction of innovation activity in the UK as we installed a major new information system.

In the UK, sales were ahead by 2%. Our overall market share rose by 10 basis points due to a focus on the Maynard and Bassett's master-brands in sugar and growth in premium chocolate. The Green and Black's organic chocolate range grew by 49%.

While Western European markets remain difficult, our focus on the growing gum and value-added sugar categories enabled our businesses in the region to register modest growth overall. We grew our gum share in most countries, with share boosted by the highly successful launch of centre-filled gum under local brand names: such as Trident Splash in Greece; Hollywood Sweet Gum in France; and Stimorol Fusion in Sweden, Switzerland and Benelux.

Revenues in Russia rose by 32% benefiting from investments in upgrading the quality of our Dirol and Stimorol brands using Adams product technology and in sales force capabilities. Strong growth in South Africa was driven by the re-launch of Cadbury Dairy Milk.

Margins were flat year-on-year largely reflecting the £20 million cost of IT implementation in the UK. Fuel for Growth cost reduction projects included the final closures of the Manchester and Chesterfield plants in the UK, and our Adams Cape Town facility in South Africa.