Yowie has been forced to suffer a $741,000 hit to its bottom line after its board discovered its assets were incorrectly valued. The Aussie chocolate maker’s assets were found to be worth more than its $A16.9 million market capitalisation.
Updating investors in a post to the ASX this morning, Yowie’s non-executive chairman Louis Carroll said the move to write-down the group’s assets was required under Australian Accounting Standards.
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. Yowie Group’s board blamed competition in the confectionary space for the company’s latest woes.