Ann: Revenue Guidance Update and CEO Appointment, page-86

Yowie’s group net sales for the second quarter of FY18 were US$5.4 million, a 23% increase on sales in the corresponding period of FY17. Group net Sales for H1 FY18 were US$10 million, representing growth of 7.5% over the opening half of the previous year.

• North America Q2 net sales were US$4.4M; flat versus the prior corresponding period and below plan. Factors include disappointing results of the Discovery World launch, Canada coming on board late in Q1, the total chocolate category declined by 1.5% in the quarter, and Yowie had one less promotional feature with our largest US customer due to the retailer scaling back feature activity throughout the chain.

Key factors in the revised sales guidance include:

• Discovery World was expected to add US$3M to FY18’s budget but is now expected
  to fall short of this as retailers are hesitant to bring on more, lower priced offerings to the crowded set. Where Discovery World is carried, it is meeting retailers’ thresholds.
• Canada was planned for a full year of on shelf activity. With the launch deferred to October, the expected contribution for FY18 will now be lower.
• Reduced feature opportunities at Yowie’s largest US retailer.

• Mark Schuessler, Global COO and Head of Yowie North America, appointed as new Global
  CEO replacing Bert Alfonso

Mark Schuessler joined Yowie in mid-2016, leading international market development and operations initially, then the whole North American business from August 2017. Prior to joining Yowie, he was President and COO of Doumak, a US manufacturer of marshmallows with business in over 70 countries. Mark doubled Doumak’s revenues in less than five years – was originally in Finance and Sales, with companies including Procter and Gamble and Campbell Soups.

• Australia net sales for 1HFY18 were US$1.8M, beating plan by 15%.