Confectionery company Yowie recorded a ($1.07 million) loss in 3Q24 due to cost overruns with its Easter production and the planned shutdown of the Ernest Hillier factory for major upgrades. Group net sales for the quarter was $7.8 million, up 42 per cent on the prior corresponding period (pcp).
Easter sales in Australia was positive, with group net sales largely buoyed by its performance. Q3 Australia revenue was $3.93 million, up 258 per cent pcp due to Easter timing.
Earnings Before Interest and Taxes Depreciation and Amortisation (EBITDA) loss for the region was ($708,000), a blow-out from ($44,000) pcp due to plant upgrades and cost overruns.
“While freight and promotional claim costs exceeded initial estimates, with corrected planning these initiatives position us for long-term growth,” Yowie said.
The Australian Easter range had 10 SKUs across Yowie, Bluey, AFL, and NRL, which was made at various contract manufacturers and its Ernest Hillier site. Distribution was through major supermarkets, Metcash, and 7Eleven.
Post Easter, the Ernest Hillier facility went into a planned 60-day shutdown to allow for several upgrades to improve food safety, employee safety and operating standards.
“There will also be significant improvements to the sites capabilities in the areas of chocolate moulding, panning, enrobing, bagging and jar filling line. The Ernest Hillier brand and range is currently under review with a focus on rejuvenating the brand proposition and offering to market,” Yowie said.
In the US, net revenue was down 11 per cent pcp to $3.91 million but accounted for 50 per cent of the group’s net sales. EBITDA was ($367,000), stable on pcp.
“Work continues to be focused on renewing the go-to market strategy which includes finding new channels and markets, improving retail sales programs and enhancing the sales tools with its national sales broker network. Further work is also being done to assess ways to improve the reliability and cost efficiency of production,” the company said.
