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Yowie shares slump after guidance slashed

Yowie Group shares have slumped to a near-five-year low after the confectionery maker slashed its full-year sales guidance and replaced its chief executive.

Shares in the ASX-listed chocolate company came out of a trading halt on Wednesday and fell as much as 36 per cent to 13.5 cents in the first half-hour of trade.

That's the lowest they have been since May 2013.

The Australian chocolate maker on Wednesday said it expects net sales to grow by 17 per cent, rather than the previously forecast 55 per cent, due to an 11.7 per cent decline in first-half North American sales.

Yowie blamed disappointing results from its Discovery World brand - which is expected to fall short of its previously estimated $US3 million ($A4.2 million) 2018 contribution.

It also expects Canada's contribution to be lower than previously forecast after the launch of its product there was delayed.

Chief executive Bert Alfonso has agreed to step down and chief operating officer Mark Schuessler - who also led the North American business - has taken over.

The Perth-based group, which sells conservation-themed toys surrounded by a chocolate shell, made a $US7.3 million ($A9.2 million) loss in the 2017 financial year due to weak sales in the United States.

The Yowie confectionary, which originally launched in Australia and New Zealand in 1995 by Cadbury and Kidcorp, was one of the most popular sweets in the domestic market until a disagreement between Cadbury and the Yowie creators led to production being halted in the early 2000s.

The Yowie Group secured the rights to the chocolates in 2012.

Yowie shares finished down seven cents, or 33 per cent, to 14 cents.

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Yowie Group (YOW)

Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 29/12/17

1 year TSR5 year TSR
569thSmart Parking-14%1%
582ndAdmedus-18%9%
706thAlexium International Group-43%43%
803rdYowie Group-80%0%
696 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

31/12/17
$0 Other
31/12/17
$0 Other
22/09/17
$132k Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

66th↑Admedus$25.6m
67th-Ding Sheng Xin Finance Co$25.5m
68th↑Yowie Group$25.3m
69th↓Smart Parking$24.7m
70th↑Alexium International Group$24.0m
234 listed industrial companies ranked by revenue.
Source: Morningstar

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