Yowie Group Shares Go Under

Today, Yowie Group Limited [ASX:YOW] continues to fall in share value, dropping by 20.69% with the share price falling to 11.5 cents.

Their shares decreased all throughout 2017, going into 2018.

On 3 January 2018, their share price fell 35% after the company announced a downgrade.

Their first half sales were up by 7.5% last year.

US sales were underperforming at $4.4 million and Aussie sale were 15% above expected standard.

After a long list of problems, CEO Bert Alfonso resigned in January and was replaced by Mark Schuessler.

What’s causing the consistent drop?

Yowies return of assets (ROA) and return on equity (ROE), have also been on the low.

US sales have been flat all year, as they have not been able to make a stable profit in the US.

Yowie has recently experienced high competition in the US, and management expects a consistency of flat sales.

Roughly one month ago their sales guidance downgraded from 55% to 17%.

Last year they announced a loss of $7.30 million and in 2017 they had $26.88 million in the bank operating a negative cash flow of -$5.07 million from operations.

What has Yowie Group planned for the future?

Yowie Group desire to continue expanding their business outside of the US, and they are preparing to launch in Canada.

Our launch into the Canadian market is an exciting step in our expansion outside of the U.S. as the YOWIE brand begins to grow into a global presence’, stated Mark Schuessler, (Chief Operating Officer at the time), now CEO of Yowie.

They have recently announced a partnership with Wild Life Conservation Society (WCS), focusing on wildlife protection and preserving the world’s natural wild life habitats.

Yowie chocolate will soon be available in New Zealand and Australia once again.

‘Australia was a logical choice to begin our expansion outside of the US because of strong residual brand awareness and affinity for the product,’ states Bert Alfonso Yowie’s Global Chief Executive Officer.

Hopefully their plan to expand to new countries will result in a positive outcome.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: Yowie is known to be an avoidable investment, however some stocks are worth the effort in regards to investing opportunities. Sam Volkering from Money Morning offers a free report titled ‘The Four Best ASX Stocks for 2018’.

 

 


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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