Yowie US tariffs on China will bring 'significant' impact to costs
Australian confectionery company Yowie Group has warned that newly implemented US tariffs on Chinese goods could will take a hit to its costs.
In a market update on the ASX yesterday (7 April), the group said the 54% tariff on Chinese imports to the US 'are likely to have a significant impact on Yowie's cost base".
A 10% baseline tariff for all US imports came into effect came into effect over the weekend, with the additional tariffs due to be effective for a long list of countries including China, the UK, Japan and EU, from tomorrow (9 April).
In response to the tariffs, Yowie, which markets its "surprise-inside-chocolates" in the US and Australia, said it was exploring alternative sourcing options, including potential toy manufacturing within the US.
However, it cautioned that 'there can be no certainty that such arrangements can be implemented'.
In February, Perth-based Yowie said it was re-assessing its supply chain due to planned US tariffs on imports from both Canada and China.
While the company manufactures its US-distributed products domestically, it sources the packaging and chocolate for its products from Canada and the toys for its chocolates from China.
According to its latest filing, Yowie currently spends around US$2.5m annually on toys sourced from China.
In addition to the US tariffs impact, the business also warned of a $1.9m hit to annual revenue due to a 'major customer' reducing shelf space as a result of changes in category layouts. It said the reduction in "store facings" was "effective immediately".
Yowie did not name the retailer or specify the affected market.
In its second-quarter fiscal 2025 revenues were $3m, down from $3.2m a year ago. US sales fell 33% to $2.1m, while Australian sales increased to $0.9m from $0.1m.
The ASX filing also included updates on developments related to Yowie's largest shareholder, Keybridge, which entered administration in February.
Yowie is a major creditor of Keybridge, with a debt of approximately A$6.7m.
A deed of company arrangement has been proposed by Nicholas Bolton, managing director at the investment firm and Yowie CEO since December, the group said.
Under the proposed deed, Yowie expects to receive 100 cents in the dollar within 21 days of implementation, pending creditor approval.
Separately, WAM Active—a Keybridge stakeholder—is proposing a loan to fund the repayment, although the details and funding capability remain uncertain.
Yowie said it 'will continue to assess the proposals and will update shareholders as further information becomes available'.
The business also announced several leadership changes. Leo Valle, Yowie's North America country manager, will retire at the end of the month. Meanwhile, Diesel Schwarze and Daniel Agocs have been appointed as independent non-executive directors, since 1 April.
Schwarze and Agocs bring experience in brand storytelling, logistics, manufacturing, and sales to support the company's consumer-focused growth and navigate global supply chain challenges, the company said.
Yowie added the appointments would look 'to enhance governance, in particular in relation to resolving its recovery of a very material debt from a related party, Keybridge'.
"Yowie US tariffs on China will bring 'significant' impact to costs" was originally created and published by Just Food, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
15 minutes ago
- Business Upturn
Sona BLW shares fall nearly 2% after Bernstein downgrades stock
By Aditya Bhagchandani Published on June 10, 2025, 09:24 IST Shares of Sona BLW Precision Forgings Ltd fell as much as 1.9% on Tuesday, trading at ₹514.35 as of 9:21 AM IST, down ₹7.00 from the previous close of ₹521.35. The decline follows a downgrade from brokerage firm Bernstein, which revised its rating on the stock to 'Market Perform' from 'Outperform'. The downgrade comes amid growing near-term risks that Bernstein highlighted, including tensions between U.S. President Donald Trump and tech billionaire Elon Musk, as well as ongoing trade issues between the U.S. and India. The brokerage also expressed concerns about the increasing competitiveness of Chinese OEMs in the global electric vehicle (EV) supply chain. Bernstein noted that Sona BLW has significant exposure to the U.S. market and a large portion of its order book is concentrated in EV components, making it vulnerable to geopolitical disruptions and sectoral headwinds. The stock's recent pressure comes despite its strong year-range performance between ₹380 and ₹768.65, with a market cap of ₹318.23 billion and a P/E ratio of 51.67. Sona BLW remains a key player in the EV component space, but analysts now suggest a cautious outlook amid global macro uncertainties. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Hamilton Spectator
20 minutes ago
- Hamilton Spectator
What to know about inspections of Iran's nuclear program by the IAEA ahead of a key board vote
VIENNA (AP) — Iran's nuclear program remains a top focus for inspectors from the International Atomic Energy Agency, particularly as any possible deal between Tehran and the United States over the program would likely rely on the agency long known as the United Nations' nuclear watchdog. This week, Western nations will push for a measure at the IAEA's Board of Governors censuring Iran over its noncompliance with inspectors, pushing the matter before the U.N. Security Council. Barring any deal with Washington, Iran then could face what's known as 'snapback' — the reimposition of all U.N. sanctions on it originally lifted by Tehran's 2015 nuclear deal with world powers, if one of its Western parties declares the Islamic Republic is out of compliance with it. All this sets the stage for a renewed confrontation with Iran as the Mideast remains inflamed by Israel's war on Hamas in the Gaza Strip . And the IAEA's work in any case will make the Vienna-based agency a key player. Here's more to know about the IAEA, its inspections of Iran and the deals — and dangers — at play. Atoms for peace The IAEA was created in 1957. The idea for it grew out of a 1953 speech given by U.S. President Dwight D. Eisenhower at the U.N., in which he urged the creation of an agency to monitor the world's nuclear stockpiles to ensure that 'the miraculous inventiveness of man shall not be dedicated to his death, but consecrated to his life.' Broadly speaking, the agency verifies the reported stockpiles of member nations. Those nations are divided into three categories. The vast majority are nations with so-called 'comprehensive safeguards agreements' with the IAEA, states without nuclear weapons that allow IAE monitoring over all nuclear material and activities. Then there's the 'voluntary offer agreements' with the world's original nuclear weapons states — China, France, Russia, the United Kingdom and the U.S. — typically for civilian sites. Finally, the IAEA has 'item-specific agreements' with India, Israel and Pakistan — nuclear-armed countries that haven't signed the Nuclear Nonproliferation Treaty. That treaty has countries agree not to build or obtain nuclear weapons. North Korea, which is also nuclear armed, said it has withdrawn from the treaty, though that's disputed by some experts. The collapse of Iran's 2015 nuclear deal Iran's 2015 nuclear deal with world powers, negotiated under then-President Barack Obama, allowed Iran to enrich uranium to 3.67% — enough to fuel a nuclear power plant but far below the threshold of 90% needed for weapons-grade uranium. It also drastically reduced Iran's stockpile of uranium, limited its use of centrifuges and relied on the IAEA to oversee Tehran's compliance through additional oversight. But President Donald Trump in his first term in 2018 unilaterally withdrew America from the accord , insisting it wasn't tough enough and didn't address Iran's missile program or its support for militant groups in the wider Mideast. That set in motion years of tensions, including attacks at sea and on land . Iran now enriches up to 60%, a short, technical step away from weapons-grade levels. It also has enough of a stockpile to build multiple nuclear bombs, should it choose to do so. Iran has long insisted its nuclear program is for peaceful purposes, but the IAEA, Western intelligence agencies and others say Tehran had an organized weapons program up until 2003. IAEA inspections and Iran Under the 2015 deal, Iran agreed to allow the IAEA even greater access to its nuclear program. That included permanently installing cameras and sensors at nuclear sites. Those cameras, inside of metal housings sprayed with a special blue paint that shows any attempt to tamper with it, took still images of sensitive sites. Other devices, known as online enrichment monitors, measured the uranium enrichment level at Iran's Natanz nuclear facility. The IAEA also regularly sent inspectors into Iranian sites to conduct surveys, sometimes collecting environmental samples with cotton clothes and swabs that would be tested at IAEA labs back in Austria. Others monitor Iranian sites via satellite images. In the years since Trump's 2018 decision, Iran has limited IAEA inspections and stopped the agency from accessing camera footage . It's also removed cameras . At one point, Iran accused an IAEA inspector of testing positive for explosive nitrates , something the agency disputed. The IAEA has engaged in years of negotiations with Iran to restore full access for its inspectors. While Tehran hasn't granted that, it also hasn't entirely thrown inspectors out. Analysts view this as part of Iran's wider strategy to use its nuclear program as a bargaining chip with the West. What happens next Iran and the U.S. have gone through five rounds of negotiations over a possible deal, with talks mediated by the sultanate of Oman . Iran appears poised to reject an American proposal over a deal this week, potentially as soon as Tuesday. Without a deal with the U.S., Iran's long-ailing economy could enter a freefall that could worsen the simmering unrest at home. Israel or the U.S. might carry out long-threatened airstrikes targeting Iranian nuclear facilities. Experts fear Tehran in response could decide to fully end its cooperation with the IAEA, abandon the the Nuclear Nonproliferation Treaty and rush toward a bomb. If a deal is reached — or at least a tentative understanding between the two sides — that likely will take the pressure off for an immediate military strike by the U.S. Gulf Arab states, which opposed Obama's negotiations with Iran in 2015, now welcome the talks under Trump. Any agreement would require the IAEA's inspectors to verify Iran's compliance. But Israel, which has struck at Iranian-backed militants across the region, remains a wildcard on what it could do. Last year, it carried out its first military airstrikes on Iran — and has warned it is willing to take action alone to target Tehran's program, like it has in the past in Iraq in 1981 or Syria in 2007. ___ Associated Press writer Stephanie Liechtenstein contributed to this report. ___ The Associated Press receives support for nuclear security coverage from the Carnegie Corporation of New York and Outrider Foundation . The AP is solely responsible for all content. ___ Additional AP coverage of the nuclear landscape: Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Yahoo
26 minutes ago
- Yahoo
Price wars grip China as deflation deepens, $30 for a luxury Coach bag?
By Liangping Gao and Casey Hall BEIJING/SHANGHAI (Reuters) -Chinese energy sector worker Mandy Li likes to treat herself to a luxury brand handbag once in a while. But since her state-owned employer cut her wage by 10% and the properties her family owns lost half their value, she only buys second-hand ones. "I'm cutting down on large expenditures," said 28-year-old Li, while browsing for items in Beijing's Super Zhuanzhuan second-hand luxury items store that opened in May. "The economy is definitely in a downturn," she said, adding: "My family's wealth has shrunk by a lot" due to the property crisis China has been grappling with since 2021. As deflationary pressures mount in the world's second-largest economy, consumer behaviour is changing in ways that could lead to further downward pressure on prices, raising concerns that deflation could become entrenched, posing more headaches for China's policymakers. Data showed on Monday that consumer prices fell 0.1% in May from a year earlier, with price wars raging in a number of sectors, from autos to e-commerce to coffee amid concerns about oversupply and sluggish household demand. "We still think persistent overcapacity will keep China in deflation both this year and next," Capital Economics said in a research note. New businesses are seeking success by targeting penny-pinchers, from restaurants selling 3 yuan ($0.40) breakfast menus to supermarkets offering flash sales four times a day. But this trend is worrying economists who see price wars as ultimately unsustainable as losing firms may have to close and people may lose their jobs, fuelling further deflation. Consumer price sensitivities' have accelerated growth in the Chinese second-hand luxury market since the pandemic, with annual growth rates surpassing 20% in 2023, according to an industry report by Zhiyan Consulting from last year. But that growth has also led to a spike in the volumes of such items available for sale - which is noticeable in the level of discounts on offer. Some new stores, including Super Zhuanzhuan, are offering items at discounts of up to 90% of their original price, compared with industry standards of 30-40% in recent years. Discounts of 70% or more are also now common on large second-hand platforms, such as Xianyu, Feiyu, Ponhu and Plum. "In the current economic environment we are seeing more existing luxury consumers shifting to the second-hand market," said Lisa Zhang, an expert with Daxue Consulting, a market research and strategy firm focusing on China. But sellers "have more discounts and it's due to more competition." At Super Zhuanzhuan, a green, carryall Christie handbag model by Coach, which its first owner bought for 3,260 yuan ($454) can be re-purchased for 219 yuan ($30). A 2,200 yuan Givenchy G Cube necklace can be found for 187 yuan. "Year-to-year, it's like 20% growth in the number of sellers, but the buyers' numbers are pretty much stable," said the founder of another second-hand luxury business in China, asking for anonymity to speak candidly about the state of the industry. "The middle class - their salary has really decreased. The economy is the number one reason we're seeing these trends." He said big cities such as Shanghai and Beijing have enough buyers to accommodate new market entrants, but elsewhere in China there isn't any room for more. "I would expect the majority of the stores which have recently opened up will actually close," he said. University professor Riley Chang was browsing through Super Zhuanzhuan not because she wanted to buy anything new - she hasn't spent money on big brands since the pandemic - but because she wanted to see what the market was if she sold any of her own possessions. She wasn't happy with what she saw. "I've been to several major second-hand luxury stores in Beijing and Shanghai and they all try to push your price as low as possible," said Chang. ($1 = 7.1833 Chinese yuan renminbi)
