LONDON (AP) — Cadbury PLC, the world's biggest candy maker, gave investors a pleasant surprise yesterday by forecasting target-beating sales in the first half and improving profit margins on the back of price rises and cost cuts.

Cadbury shares jumped 4.3 percent to 674.5 pence ($13.10) after the unexpected trading statement from the maker of Dairy Milk chocolate, Trident gum and Halls cough drops, which followed the company's first board meeting since it spun off its US drinks business.

"Following the demerger, I am very pleased to confirm that the new company is off to a strong start with revenues in the first half expected to be above the top end of our goal range and trading margins around 150 basis points ahead," chairman John Sunderland said.

"This performance reflects the combination of increased marketing investment, higher pricing and successful early execution of our cost reduction initiatives," Sunderland said.

Cadbury has announced plans to close 15 percent of its confectionary factories by 2011, cutting around 7,500 jobs, and shift its headquarters to London's outskirts to cut costs amid rising input charges thanks to surging dairy and cocoa prices.

The newly solo company has come under further pressure due to the $23 billion takeover by Mars Inc. of Wm. Wrigley Jr. Co. announced earlier this month.

That deal — bringing together brands including Snickers, M&Ms, Juicy Fruit, Orbit, Extra and Big Red — will create a company that will leapfrog Cadbury to be the world's largest confectionary business.

Cadbury currently has 10.1 percent of the market. The combined Mars-Wrigley would have 14.1 percent.