Cadbury Schweppes shrugged off takeover speculation surrounding the group today as it vowed to recover from a challenging 2006 and reinvigorate the UK chocolate market.

Ken Hanna, finance director, said the group heard rumours “every day” but was committed to pushing ahead in its current structure despite a torrid 12 months.

Market talk of a bid from Kraft Foods, Hershey and a host of private equity firms has underpinned the shares in recent weeks.

But Todd Stitzer, chief executive, said that Cadbury was in a commanding position despite last year’s salmonella scare in the UK, which cost £30 million, and last week's warning that the group may have to recall Easter eggs over a nut scare.

He added: “I think we learnt a lot of lessons in 2006. Our chocolate market share in the UK is 34 per cent, the same as at the start of last year. That’s 10 per cent more than our nearest rival Mars and double Nestle’s. I don’t see how you couldn’t be optimistic about the prospects for the business.”

Mr Stitzer said the group’s priority was to invest in a number of product launches around the world, including a host of new chocolate bars in the UK.

Among those planned are Bourneville Deeply Dark, Dairy Milk double chocolate and the relaunch of a Creme Egg bar after Easter to “reinvigorate” sales.

The company is also planning to invest further in Trident chewing gum, launched in the UK recently, and Green & Black's, its organic chocolate brand.

Full-year results today showed pre-tax profits dropped 12 per cent to £738 million in 2006 after the salmonella scare and £133 million of restructuring costs. Revenue rose 3 per cent to £6.6 billion and shareholders will pocket a dividend of 14p per share, up 8 per cent.

Mr Stitzer said that despite the tough year, three out of four of Cadbury’s operating regions performed well with underlying profits up 11 per cent in the Americas beverages business.

Volume sales of Dr Pepper, Sunkist and Canada Dry were all ahead, and 7UP volumes rose 7 per cent in the second half of the year after a reformulation and relaunch.

An accounting scandal in Nigeria led to a £15 million impairment charge. Cadbury discovered the division had significantly overstated its financial position.

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