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 N/A N/A N/A N/A N/A N/A
2019E N/A N/A N/A N/A N/A N/A

Last updated on 18/01/2018

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. On 3 January, Yowie announced Q218 sales growth of 23% and full-year sales growth estimates to 17%, from a range of 55-70%. Separately, Mark Schuessler took over as global CEO from Bert Alfonso. Our estimates are under review.

Last updated on 02/02/2018

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 02/02/2018

Key management

Louis Carroll, Chairman
Simon Andrew, Investor Relations
Mark Schuessler, Global CEO/Managing Director

Company address

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