Australian-listed confectioner Yowie Group says it will take a $1.9 million annual revenue hit thanks to one of its key retail partners reducing the number of store facings due to changes in the store category layout.
Yowie did not reveal the identity of the retailer – or which market it is in – noting only that it was a “major” chain.
The company also addressed the 54 per cent aggregate US tariffs imposed on Chinese goods, announced by President Trump last week. The tariffs will not significantly impact Yowie, as most of its US products are manufactured locally. However, two of its major inputs – chocolates and toys – are imported.
Yowie spends an estimated $2.5 million each year importing toys from China and is assessing alternative sourcing strategies within the US.
Changes to the Yowie board have also been made to primarily recover a A$6.7 million debt from Keybridge Capital following the proposal of a Deed of Company Arrangement that will see Yowie receive 100 cents in the dollar within 21 days of implementation.
Advertising director, Diesel Schwarze, and operational expert, Daniel Agocs, have been appointed to the Yowie board as independent non-executive directors.
Yowie also announced that the country manager of Yowie North America, Leo Valle, will retire on April 30 after eight years with the company.
