I believe another container is on it's way. This was address during the teleconference. Supply is still a problem. If you have a look at the latest presentation, we haven't reach maximum production capacity yet.
With two wrappers at the factory, we can product 40 million units per annum or 3.333 million per month. If you have a look at the previous quarter, Yowie has produced 5.2 mil units of a possible 12 million units.
Demand is probably weaker than expected hence the lack of commitment to ramp up. If you take Australian revenue out from the 3rd qtr, net sales revenue in the US remains flat. The only thing that helped boost net sales revenue was the 5 container shipped to Australia. Share price would have dropped dramatically had the rollout to Australia not occurred last quarter.
I believe management did not predict how difficult it was to break into the US market. Slowly and surely it will gain traction. Human in general are very fickle nowadays, they move on from trends very quickly and I'm afraid we might have missed our boat but I am still hopeful.
YOW Price at posting:
40.5¢ Sentiment: Hold Disclosure: Held
