Yowie Group (ASX:YOW) currently holds about $850,000 in Chinese-made toy inventory in China or en route to the US, resulting in an unbudgeted incremental import cost of $1.2 million based on the recently increased tariff, according to a Friday Australian bourse filing.
The company sources toys from China, at a budgeted cost of $2.5 million a year and the revised tariff rate has a likely incremental impact on its annual cost base of $3.6 million bringing the total annual cost of toys to $6.1 million.
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