Yowie Group (YOW)

Business description

Yowie Group is engaged in brand development of the Yowie chocolate confectionery product, digital platform, and licensed consumer products. Its brand vision includes distribution in North America, Australia and Canada, with further expansion planned.

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 13.1 (6.6) (6.7) (40.5) N/A N/A
2017A 19.9 (7.5) (7.9) (33.9) N/A N/A
2018E 31.8 (0.5) (0.9) (4.0) N/A N/A
2019E 42.1 1.6 1.2 4.8 4.3 N/A

Last updated on 01/11/2017

Investment summary

In FY17, Yowie grew total revenue by 52% after significantly increased marketing activities. The company added to its distribution channels, grew US market share, increased gross margin, raised brand awareness through social media and launched in Australia. In FY18, management expects to grow confectionery net sales by 55%-70% and reach positive EBITDA (before share-based compensation). We have reduced our FY18 forecast from pre-tax profit US$5.8m to a loss of US$0.9m, but expect this to develop to a profit of US$1.2m in FY19.

Last updated on 02/11/2017

Industry outlook

Chocolate is a benchmark consumer product, with over half of US consumers eating it at least once a week. US consumer confidence is at a historically strong level of 120.3 at October 2017 (Reuters). The major manufacturers benefit from brand loyalty, strong shelf positioning and large marketing budgets provide a competitive edge. However, there is potential for smaller brands to take share if they can establish individual appeal and prominent store placement.

Last updated on 02/11/2017

Key management

Trevor Allen, Chairman
Simon Andrew, Investor Relations
Bert Alfonso, Global CEO/Managing Director

Company address

Level 4
216 St Georges Terrace
Perth
WA 6000
Australia
+61 (0) 8 9486 7066
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