Yowie projects strong fiscal 2018 as it delays Canada entry
In a market update yesterday, the company said it expects group annual revenue growth for fiscal 2017 of 55%.
This will be lower than its previous guidance of 70% given in April this year and its 85% to 90% guidance in February this year, as well as its initial guidance of doubled sales growth.
Yowie said delayed entry into Canada contributed to missed targets.
The Australian novelty confectionery maker had planned to start distribution in Canada in Q4 of fiscal 2017. It now plans to launch in Q1 2018 and expects US$1m revenues in Canada the first quarter.
It also said its largest retail customer had been expected to contribute US$500k in Q4 2017 net sales by stocking Yowie’s new range Discovery World, but the launch in the retailer was pushed back to Q1 2018.
Bert Alfonso, Yowie global CEO, said: “As a young company, unfortunately any change by a customer to the timing of a planned program in any given quarter will have a significant percentage change on our business.
“However, having grown net sales from US$2m in FY15 to $12.9m in FY16 to a projected US$20m FY17, we are outpacing all other brands in the confectionery plus space by a wide margin.”
Yowie said it would communicate a date to publish its full-year 2017 results shortly.
The company said the US and international expansion are its priorities.
It plans to roll out its Series 3 range of Yowie chocolate confectionery characters in the US in fiscal 2018 and said it was making progress on Series 4, which will be co-marketed with the World Conservation Society.
The company already has national distribution in retail giant Walmart in the US.
Strong Australian launch
Yowie – which was previously sold in Australia by Cadbury in the Nineties – re-entered the market earlier this year with Yowie Group’s distribution partner Universal Candy.
Ferrero announced at the Sweets & Snacks Expo last month in Chicago it will bring Kinder Joy eggs to the US market in 2018.
Yowie said the launch has been a success with Q4 net sales of US$750k to its Australian distributor, following US$1.2m in Q3. Yowie also recently added new accounts such as KMart.
Yowie Group is headquartered in Perth and is publicly listed on the Australian Securities Exchange
The company’s largest shareholder is HSBC Custody Nominees (Australia) Limited with a 15.38% share, according to its 2016 annual report.
Yowie products for the US and Australia are produced by contract manufacturer the Madelaine Chocolate Company in the US.