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YOWIE GROUP LTD — Capital/Financing Update 2017
Feb 9, 2017
66111_rns_2017-02-09_74ba9cee-b2f6-418a-af5d-a756b0028def.pdf
Capital/Financing Update
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ABN 98 084 370 669
February 10, 2017 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000
YOWIE UPDATES YoY NET SALES growth to 85% to 90% in FISCAL 2017
Due to delays in the projected timing of shipments for new products and launches in markets previously expected to occur in Q4 of fiscal 2017 , Yowie Group Ltd (ASX: YOW, OTC ADR: YWRPY) (the “Group” or “Yowie” ) wishes to update its revenue growth target for fiscal 2017 to now be in the 85% to 90% range versus previous guidance to about double sales growth.
Highlights for the remainder of fiscal 2017 include:
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Net Sales expected to grow in the 85% to 90% range for the full year, following 70% growth in 1[st] Half. Q3 sales are tracking as expected and the lower Q4 growth will not have a material impact on other financial operating metrics.
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Yo Kai license launch moved to Q1 fiscal 2018 as product development and approval from Licensor are requiring more time to finalize
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While we remain confident that we will enter an additional market outside the US, aside from our return to Australia announced recently, we have reduced our fiscal 2017 target for such markets as we align distribution and retailer negotiations
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Manufacturing has been operating as expected following Q2 disruption
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Plans remain in place for our Pre-Easter marketing campaign to continue building brand awareness and product demand
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Importantly, sales of Yowie branded product remain on track in the US market.
Overall, we continue to make strong progress in the development of our Brand and the business in the various US retail channels and expansion into new markets. Q3 Easter driven orders are well above year ago levels and will be supported by our social media driven Pre Easter marketing campaign.
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Head Office Yowie Group Ltd Level 4, 216 St Georges Terrace Perth WA 6000 PO Box 7315, Perth WA 6850 Phone +61 8 6268 2640 Fax +61 8 6268 2699 ABN 98 084 370 669
We are refining our full year/Q4 YoY growth outlook as we gain greater visibility to the final months of fiscal 2017. The slight reduction to our outlook from about double to a narrower 85% to 90% growth rate, simply reflects timing for both the Yo Kai license and non-US expansion. Importantly, sales of Yowie branded product remain on track in the US market.
Demand for Yowie remains strong and we continue to execute against our key strategies. In recent weeks the Group achieved another significant milestone by exceeding US$30m in gross sales since inception. As we complete Q3 we will provide visibility and guidance for fiscal 2018, which we believe will be another year of strong growth for Yowie.
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 ten years. Expansion into Europe and the Middle East are key strategic priorities for a second-stage 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
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Head Office Yowie Group Ltd Level 4, 216 St Georges Terrace Perth WA 6000
PO Box 7315, Perth WA 6850 Phone +61 8 6268 2640 Fax +61 8 6268 2699 ABN 98 084 370 669