Yowie US tariffs on China will bring “significant” impact to costs

Australian confectionery institution Yowie Group has warned that recently implemented US tariffs connected Chinese goods could volition instrumentality a deed to its costs.

In a marketplace update connected the ASX yesterday (7 April), the radical said the 54% tariff connected Chinese imports to the US “are apt to person a important interaction connected Yowie's outgo base".

A 10% baseline tariff for each US imports came into effect came into effect implicit the weekend, with the further tariffs owed to beryllium effectual for a agelong database of countries including China, the UK, Japan and EU, from time (9 April).

In effect to the tariffs, Yowie, which markets its "surprise-inside-chocolates" successful the US and Australia, said it was exploring alternate sourcing options, including imaginable artifact manufacturing wrong the US.

However, it cautioned that “there tin beryllium nary certainty that specified arrangements tin beryllium implemented”.

In February, Perth-based Yowie said it was re-assessing its proviso concatenation owed to planned US tariffs connected imports from some Canada and China.

While the institution manufactures its US-distributed products domestically, it sources the packaging and cocoa for its products from Canada and the toys for its chocolates from China.

According to its latest filing, Yowie presently spends astir US$2.5m annually connected toys sourced from China.

In summation to the US tariffs impact, the concern besides warned of a $1.9m deed to yearly gross owed to a “major customer” reducing support abstraction arsenic a effect of changes successful class layouts. It said the simplification successful "store facings" was "effective immediately".

Yowie did not sanction the retailer oregon specify the affected market.

In its second-quarter fiscal 2025 revenues were $3m, down from $3.2m a twelvemonth ago. US income fell 33% to $2.1m, portion Australian income accrued to $0.9m from $0.1m.

The ASX filing besides included updates connected developments related to Yowie’s largest shareholder, Keybridge, which entered medication successful February.

Yowie is simply a large creditor of Keybridge, with a indebtedness of astir A$6.7m.

A deed of institution statement has been projected by Nicholas Bolton, managing manager astatine the concern steadfast and Yowie CEO since December, the radical said.

Under the projected deed, Yowie expects to person 100 cents successful the dollar wrong 21 days of implementation, pending creditor approval.

Separately, WAM Active—a Keybridge stakeholder—is proposing a indebtedness to money the repayment, though the details and backing capableness stay uncertain.

Yowie said it “will proceed to measure the proposals and volition update shareholders arsenic further accusation becomes available”.