Yowie sales decline announcement raises ASX eyebrows
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Iconic Aussie chocolate maker Yowie downgraded its sales growth last week but has been pinged today for not revealing the information sooner.
The ASX issued an aware query to the company, questioning when they first became aware of the decline, down from 55 to 17 per cent.
Shares in the company dropped 33 per cent on the news last Wednesday, but Yowie (ASX:YOW) maintain they upheld their continuous disclosure obligations, detailing the turn of events from December 28 when the review was first suggested.
“The board became aware that there was an actual 11.7 per cent shortfall in North American net sales compared to the prior corresponding half year period after the end of the half year on 31 December 2017 and whilst the company was in a trading halt,” they wrote in their response.
“…The board is of the view that the information was disclosed promptly and without delay.”
Shares in the company slipped from 22c before the trading halt to as low as 14c, but sprung back to 18c on Monday.
Chief Bert Alfonso stepped down after the results were released last week, with Mark Schuessler to take his place.
They say the drop in sales growth was due to problems in North America.
“North America Q2 net sales were US$4.4M; flat versus the prior corresponding period and below plan,” they told the market last Wednesday.
“Factors include disappointing results of the Discovery World launch, Canada coming on board late in Q1, the total chocolate category declined by 1.5 per cent in the quarter, and Yowie had one less promotional feature with our largest US customer due to the retailer scaling back feature activity throughout the chain.”