Yowie’s shares have dropped to an almost five year low, after the Australian confectionery maker took the decision to slash their full-year sales guidance and hire a new chief executive.
On the 3rd January, shares in the ASX-listed chocolate company came out of a trading halt, and plummeted to as much as a 36% to a concerning 13.5 cents in the first half-hour of trade – the lowest Yowie have been since May 2013.
In response, Yowie claimed that they’re fully expecting net sales to grow by 17%, which is somewhat down from their previous forecast of 55%, which they’re putting down to an 11.7% decline in first-half North American sales.
Disappointing results from Yowie were blamed on its Discovery World brand, which hasn’t fared well at all and is massively expected to fall short of its once estimates $3m US ($4.2 AU) 2018 contribution.
In addition, it’s also expected that Canada’s contribution will be much lower than once thought, given that the launch of its product there had to be delayed.
Things are changing behind the scenes as well, with chief executive Bert Alfonso agreeing to step down from his role, with chief operating officer Mark Schuessler taking over in his place.
Yowie, a Perth based group, also made a $7.3m US ($9.2m AU) loss in the 2017 financial year, mainly due to weak sales in America.