AFR

A positive market update by Yowie Group in mid-March triggered a share price re-rating of 20 per cent, as well as attracting positive commentary from brokers.

The company is a global brand-licensing organisation with intellectual property rights in the outsourcing of the manufacturing and distribution of the Yowie chocolate confectionery product.

One of management's key goals is to establish a strong position in North America and its update provided in March indicated sales and distribution accounts have been signed with a range of large supermarkets and grocers, effectively resulting in its products being distributed to more than 3000 new outlets.

Wal-mart Stores, Safeway and 7-Eleven are just three of the high-profile supermarkets which have committed to distributing Yowie's products. Management also says current trials point to potential for distribution of its products to up to 31,000 stores.

The group's Florida-based manufacturing facility has the capacity to produce 20 million units per annum.
Analysts at Foster Stockbroking, which engaged in a $10 million raising for the company in January, expect Yowie to generate a maiden net profit of $4.4 million from revenues of $34.4 million in 2016-17. These metrics underpin the broker's "buy" recommendation and 12-month price target of $1.10.