Cadbury, the UK confectionery group that is a takeover target for US food group Kraft, on Wednesday increased its full-year financial targets on the back of stronger revenue growth but said declines in sales volumes had worsened.

Cadbury reported sales revenue growth of 7 per cent for the third quarter, compared to growth of 4 per cent in the first half, as the company raised prices and sold more products with high profit margins, like sugar-free gum.

However, sales volumes, which were down 1-2 per cent in the first half, fell 3 per cent in the quarter.