Yowie Group says the recent tariff changes and a key customer significantly reducing its order means the company had to revise its FY25 forecast.
A major client has reduced its ordering due to changes in store layout, that Yowie said would likely impact its revenue by $3.16 million (US$1.9m), based off historical sales figures with the customer.
The confectioner has not escaped the US tariff roll-out, despite its US distributed products being manufactured in the US.
Its two material inputs - chocolate and toys - are imported. The company spends around $4.16 million sourcing toys in China.
“The announced 54 per cent aggregate tariff on Chinese goods entering the USA are likely to have a significant impact on Yowie’s cost base,” the company said.
It added that it was looking into alternatives, including manufacturing options within the US, but said there was no certainty that could be implemented.
Keybridge Capital load update
In February, the group called in its loan facility with its major shareholder, Keybridge Capital, which went into voluntary administration soon after.
Yowie said a deed of company arrangement had been proposed by Keybridge’s managing director (and Yowie CEO) Nicholas Bolton, under which Yowie would receive 100 cents in the dollar within 21 days of implementation, subject to creditor approval. Separately, WAM Active is proposing to fund creditors of Keybridge by way of a loan, but details are yet to follow.
Yowie said it will continue to assess the proposals and will update shareholders as further information becomes available.
