Cadbury Schweppes, the chocolate-to-fizzy drinks group, has reported a 12 per cent rise in profits, although its business in the UK turned in weaker results.

The group, which makes Dairy Milk chocolate and Dr Pepper drinks, said underlying pre-tax profits for the year to December 30 rose from £792m to £886m and turnover rose 21 per cent to £5.52bn.

Chief executive John Sunderland said 2001 had been an "excellent year".

In the UK and Canada, disruption caused by integrating its chocolate and sugar businesses, combined with weaker trading environments, caused weaker results.

The integration has seen Cadbury combine the infrastructure and systems of its Cadbury chocolate and Trebor Bassett sweets businesses, which have their main sites in Birmingham and Sheffield and employ about 6,500 staff.

The integration began about 18 months ago and ended last June.

Cadbury said the Trebor Bassett business, which it bought in 1989, had a slow start to 2001 as it focused on integration, and profits were modestly down year-on-year.

However, Cadbury said it had a strong performance at Easter and Christmas, and its Dairy Milk bars increased volume and gained market share.

Mr Sunderland said he was encouraged that, in the UK, performance had strengthened through the year, with core chocolate volumes growing two per cent in the final quarter.

Chief operating officer John Brock said of the UK: "What we have seen is a significant pick-up in business - we ended the year with an excellent Christmas."

Chocolate selections such as Milk Tray and Roses did exceptionally well, and Cadbury's Dairy Milk chocolate had a "very solid" second half-year.

But the group had experienced a difficult trading environment, he said, adding that in the UK the confectionery market overall last year was broadly flat. However, following the confectionery integration, more products were to be launched.