Novelty candy manufacturer Yowie Group wants to focus on “fiscal responsibility” as the business manages freight delays due to global supply-chain issues and its sales rebound.
In a trading update, the business reported that while fourth-quarter net sales were down by 2 per cent at $5.56 million, full-year sales were up 24 per cent to $22.35 million.
“This has been a very successful year, especially in light of the current market environment,” said Mark Schuessler, global CEO and MD, in a stock-exchange filing. “Sales have rebounded in the US and Australian markets due to consumer cash positions, impulse purchases being strong across the confectionery category and increased retail distribution in our target grocery and convenience channels.”
The company said increased costs for marketing, legal fees, raw materials, and rising selling and distribution costs impacted the pre-tax earnings, which finished the year at $481,000, compared with a loss for the previous year of $38,600.
Gross margin for the year remained 48 per cent despite the increase in material, transportation and administrative costs.
To combat a “difficult market environment”, the company is preparing to stabilise its product supply, grow its organic sales volume and increase its retail distribution networks.
