Yowie saw sales improve during the second quarter thanks to backlogged orders, though this gain did little to buoy the group’s half year result which fell 13 per cent on last year.
Quarterly sales grew 19 per cent to US$2.3 million, while EBITDA for the period narrowed to a loss of $344,000, compared to the $1.1 million loss during the same period last year despite lower sales.
“Additionally, we had over $US600k in US and Australian backlogged orders due to our manufacturing plant being shut down by government authorities with the resurgence of Covid,” Yowie said.
And, in response to consumer requests, the business will be bringing back a number of its earlier series of promotions which will launch in Q4, and will soon announce a new product.
In the US, the confectionary industry has seen consumption trends boost 9.5 per cent in the past 13 weeks, due to 10.5 per cent growth in convenience and 76.4 per cent in grocery. The business has worked to keep its shelves stocked, despite the manufacturing delays, and has seen growth in the US market.
According to Yowie, consumer takeaway, cash, and margins have all improved despite the difficult trading environment, and it is edging closer to profitable trading.
“Our team is focused on containing costs through negotiation and planning, keeping products on shelves and connecting with consumers on social media,” the business said.