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YOWIE GROUP LTD — Capital/Financing Update 2016
Mar 1, 2016
66111_rns_2016-03-01_82a8e983-b147-4253-a938-5d5ab6e8967f.pdf
Capital/Financing Update
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ABN 98 084 370 669
March 2, 2016
ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000
YOWIE NEW PLANT COMMISSIONING ON SCHEDULE
In December 2015 Yowie Group Ltd (the “Company” or “Yowie” ) announced that the Company had significantly expanded its contracted manufacturing capacity in the USA by entering into a long term manufacturing agreement with New York based Madelaine Chocolate Company. The agreement allows Yowie access to high speed, high volume, automated and robotically driven manufacturing of the Yowie chocolate candy product. These production and capacity features allow Yowie the opportunity to expand its US rollout and plan for global expansion opportunities.
The Company wishes to advise that installation of manufacturing equipment tailored by the Company specifically to utilize the new Company owned capsule in the production of Yowie product is scheduled to commence on March 10, 2016, subject to timing of customs clearance. The manufacturing equipment is currently in transit to the Madelaine facility following precommissioning in Europe to minimize commissioning risk. The pre-commissioning took place under Yowie supervision and successfully utilized the new Yowie capsule.
The new production line is expected to be fully commissioned at the Madeleine facility in New York by the end of March. This timing includes an allowance for manufacturing assurance testing and trials.
Yowie has sufficient product inventory to cover the production ramp-up at Madelaine with contingency. The Angry Birds licensed product will be the first product to be manufactured from the newly commissioned line.
With the consolidation of manufacturing activities at Madeleine, Yowie can confirm that base production potential at Madeleine is 100 million units per
Head Office
Yowie Group Ltd. Level 45, 108 St Georges Terrace, Perth WA 6000
PO Box 7315, Perth WA 6850 Phone +61 8 9486 7066 Fax +61 8 9486 8066 ABN 98 084 370 669
annum. Wrapping capacity, which sits under Yowie ownership, is a matter subject to Yowie capex and views on demand. The current installation and commissioning process for our 2 Rasch wrapping machines provides market capacity of 40 million units per annum. Additional wrapping machines can be acquired as required with much higher capacities than the Rasch machines. The Madelaine layout allows for easy installation and integration of additional wrappers up to 100 million units per annum.
The new Yowie manufacturing plant and Company owned capsule have been developed as part of a long term strategic plan designed to mitigate risk and optimize Yowie performance as a sustainable company and brand well equipped to compete successfully in a competitive global market.
Yours sincerely
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Wayne Loxton Executive Chairman Yowie Group Ltd
About Yowie
Yowie Group Ltd is a global brand licensing company specializing in the development of consumer products designed to promote learning, understanding and engagement with the natural world through the adventures and exploits of six endearing Yowie characters. Educating children and adults about the environment and ecology is at the heart of the Yowie proposition.
Yowie Group employs its company-owned intellectual property rights in the outsourcing of the manufacturing and distribution of the Yowie chocolate confectionery product and in the development of a Yowie digital platform and Yowie branded licensed consumer products. The Company’s vision for the Yowie brand includes distribution of Yowie product in North America, with further expansion planned into Australia, New Zealand and throughout Asia, where the Yowie brand is known and brand equity remains strong, even with the brand not having been active in the market for around eight years. Expansion into Europe and the Middle East are key strategic priorities for further brand rollout.
Yowie Group Ltd was first listed on the Australian Securities Exchange www.asx.com.au in December 2012 under code name ‘YOW’. The Company’s registered head office is in Perth, Western Australia.
For more information on the company go to www.yowiegroup.com The Yowie consumer website can be found at www.yowieworld.com
Head Office
Yowie Group Ltd. Level 45, 108 St Georges Terrace, Perth WA 6000
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PO Box 7315, Perth WA 6850 Phone +61 8 9486 7066 Fax +61 8 9486 8066 ABN 98 084 370 669