- Yowie Group (YOW) has recorded a massive slump in its April sales due to COVID-19
- Month-on-month net sales in April dropped by 52 per cent from US$857,000 in March to US$408,000 in April
- The Yowie Group said the backend of March showed a huge drop in retail foot traffic, which the company says came about as parents were unable to bring their children shopping, impacting impulse sales
- However, Yowie says the global sales will continue to be impacted as the pandemic has caused uncertainty
- On marker close, Yowie remains steady, trading for 3.8¢ each
Yowie Group (YOW) has recorded a massive slump in its April sales due to COVID-19.
The full ongoing effect of COVID-19 on the business remains uncertain. However, current indications suggest global sales will continue to be materially impacted by the virus.
The March quarter trend for the company and the uncertainty of the market confirms the December quarter update that predicted the group would fall short of its financial year 2019 revenue, in turn affecting the earnings before interest, taxes, depreciation, and amortisation (EBITDA).
This trend has continued for the fourth quarter, with month-on-month net sales in April falling by 52 per cent from US$857,000 in March to US$408,000 in April.
The Yowie Group said the backend of March showed a huge drop in retail foot traffic, which the company says came about as parents were unable to bring their children shopping, impacting impulse sales.
During this time, cash reserves have increased from US$10.55 million to US$11.06 million.
“This improved cash position is due to a combination of current high inventory levels as a result of preparing for temporary manufacturing shutdown and further salary and cost reductions,” the company said.
As Yowie navigates the challenges brought on by increased competition from major confectionary companies and COVID-19, the company is also seeking a strategic partnership.
On market close, Yowie remains steady, trading for 3.8 cents each.