Yowie has been forced into a $US500,000 ($A741,000) impairment after the Aussie chocolate maker’s assets were found to be worth more than its $A16.9 million market capitalisation.
The beleaguered confectionary company said it had reviewed its operations after triggering impairment indicators under Australian accounting standards, necessitating a $US499,228 writedown, largely against plant and equipment.
Yowie last month said it had cut its net loss for the year to June 30 by 3.8 per cent to $US5 million, but it has now widened from $US5.2 million to $US5.5 million.
The company’s $2.8 million earnings loss was already worse than it had flagged in July, with the result weighed down by an 18 per cent revenue plunge to $US14.4 million, which Yowie attributed to the bigger marketing spend of rival Kinder Surprise.
Kinder returned to US shelves in December 2017 after a 50-year absence, which has heaped pressure on Yowie’s own 2012 revival and setback-riddled relaunch in the US.
Yowie’s treats rose to prominence in Australia in the late 1990s thanks to the collection of small plastic wildlife figurines contained within.
But the product disappeared from shelves in 2005 when then-owner Cadbury Schweppes fell out with brand creators – author Bryce Courtenay and advertising identity Geoff Pike – and ceased production.
The Perth-based company has stumbled through a series of poor financial results and diminishing sales since hitting the shelves again, fending off a number of takeover tilts and repeatedly pledging to turn things around.
In July, Aurora Capital abandoned its planned takeover instead called for Yowie to be wound up if management could not plot a convincing near-term turnaround strategy.
Yowie’s ASX-listed shares were last worth 7.8 cents, a fraction of the near 15-year high of $1.25 in 2015.