Sept. 16 (Bloomberg) -- Cadbury Plc, the U.K. confectioner which spurned a takeover approach from Kraft Foods Inc., sees acquisitions having an “important role” in its future growth, Chief Executive Officer Todd Stitzer told investors today.

Cadbury has “a considerable number of growth and market share initiatives underway,” and is assessing “bolt-on” acquisitions in emerging markets as part of that strategy, Stitzer said in a presentation posted on the company’s Web site today. He was speaking to investors at Sanford C. Bernstein & Co.’s Strategic Decisions Conference in London.

London-based Cadbury is aiming to assure investors it can improve profitability through its “Vision Into Action” cost- cutting program and grow sales through purchases. The program, which aims to lift the operating margin to a “mid-teens” percentage by 2011, is “starting to deliver,” Stitzer said.

“Given our track record of value-creating acquisitions, and our familiarity with the confectionery space, it should not come as a surprise to you when I say that we have a list of potential targets which we would work towards acquiring.”

A reduction in capital expenditure from 2010 onwards and “robust cost reductions” will “provide fuel to capitalize on new growth opportunities,” the CEO said.

“It’s an attempt to highlight that Cadbury can be the consolidator themselves, but it doesn’t sound like a big deal to block the Kraft bid is on the cards,” said Alex Sloane, an analyst at Evolution Securities Ltd. in London. “If Cadbury is to stay independent, further consolidation is inevitable.” Evolution has a “buy” rating on the shares.

‘Best Defense’

Stitzer didn’t respond to Kraft’s 9.7 billion-pound ($16 billion) takeover proposal in the presentation, saying the company is “operating under constraints.” Cadbury will not start a takeover defense unless Kraft makes a formal offer under U.K. rules, according to a person familiar with the matter.

Cadbury rose 5.2 pence, or 0.7 percent, to 793 pence in as of 11:23 a.m. in London trading. The stock climbed as high as 808 pence on Sept. 7, the day Cadbury rejected Kraft’s offer proposal, and has remained above the cash-and-stock offer price.

Speaking at the University of Toronto this week, Kraft CEO Irene Rosenfeld said she’s considering a formal bid for the U.K. candy maker, without saying whether she’ll raise the offer.

Cadbury has previously said it will consider bolt-on acquisitions that would boost growth in emerging markets or those regions where it has a smaller overall market share.

The cost-cutting program is Stitzer’s “best defense” for fending off Kraft’s approach, Ken Hanna, who was the CEO’s finance chief for five years before stepping down in March, said in an interview last week. “It would be difficult to invent something new” to base a defense on, Hanna added.

The maker of Dairy Milk and Wispa chocolate bars raised its operating margin by 1.45 percentage points to 11.5 percent in the first half of the year, excluding currency movements, beating analysts’ estimates.

To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net.

Last Updated: September 16, 2009 06:34 EDT