Yowie Group Ltd (ASX: YOW)

Encouraging end to FY18: Yowie Group Ltd (ASX: YOW), which is known to be a global brand licensing company specializing in the development of consumer products with designs to aid learning, understanding and engagement with the natural world, witnessed a share price surge of about 28% on July 10, 2018 as it updated the market on an encouraging fourth quarter performance. The group’s revenue guidance for FY18 has been flagged to be achieved with global net sales, excluding the Walmart adjustment being above last year despite challenges that cropped up from a big US launch by a major global competitor. The group’s Q4 global net sales jumped up about 18% to $5.0 million against prior corresponding period and US Sales were up 38% to $4.8 million. The group has enhanced its US distribution across all channels with market share also going up. YOW believes that this momentum would continue in FY19. Its Australia FY18 net sales were $2.7 million, representing a rise of 44% due to a full year in the market and the ranging of Yowie in a major retailer. The group now aims to take more charge in terms of cost management and targets FY18 EBITDA, excluding non-recurring items, to be slightly better than the prior year. While the full year results are due in the week ending August 24, 2018, we maintain a “Hold” on the stock at the current price of $ 0.097, which looks to be on a rebound given soft first half performance that was accompanied by a fall of 45% this year to date.
 

Villa World Ltd (ASX: VLW)

Guidance upgrade: Villa World Ltd (ASX: VLW) witnessed a share price rise of 6.88% on July 10, 2018 as the group upgraded its full year guidance for net profit after tax from $41.6 million, to a range of about $42 million to $44 million. VLW has fallen over 23% in this year to date due to performance related challenges, however the real estate player now believes that the $2.6 million contribution from the strategic sale of an englobo parcel with product delivery and land title registrations are benefitting the group. Its sales momentum has continued with  1,678 sales recorded for the full year. In fact, the group will now carry forward significant pre-sales into FY19 and FY20. VLW aims to have FY18 dividend of at least 18.5cps fully franked and it will release its financial results for FY18 in August 2018. We maintain a “Hold” on the stock at the current price of $ 2.330.

 
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