Yowie reduces full year loss with profitable trading in sight
Global net sales, after the stock adjustment claim, were US$17.52 million for the year ended 30 June 2018, 10% lower than the previous corresponding period.
At the end of last year the company realised that it would not meet its previously published FY2018 growth guidance and made changes to its board and management in the new year.
At the time, shareholders were assured that the company would recover the revenue decline and match the previous year’s revenues. In a message to shareholders, non-executive chairman Louis Carroll said he was pleased to deliver on that front, while at the same time “aggressively reigning in costs across the board”.
“In this financial year, which started in July 2018, the company expects to generate positive cash from operations and trade profitably,” Carroll said.
Yowie’s results were helped by its major customer in the US, which saw a “rebound” in sales of more than 20% from the levels dropped to when a major competitor arrived in the market.
“Distribution increases in the US are continuing and our market share is growing,” Carroll said.
ANZ net sales were US$2.67 million, an increase of more than 40% over the previous corresponding period. Carroll attributed this to the support of Woolworths, which recently confirmed that it will expand its distribution of Yowie to all 950 of its stores in October.
According to Carroll, the board and management are making significant progress on all fronts.
“We still have US$19.5 million in cash and profitable trading is in sight. We strongly believe that these are grounds for the stock to be rerated.”