Moa narrows 1H loss, reiterates break-even target

Thursday 29th November 2018

Brewer Moa Group reported a slightly narrower first-half loss on improved sales and reduced administration and marketing costs.

The firm is aiming to break-even at the operating level in the current six months. Today it reported a $1.4 million loss for the half-year through September, compared with a $1.5 million loss a year earlier.

Net revenue, after excluding excise, was marginally higher at $4.6 million, reflecting the end of a distribution deal with Parrot Dog late last year.

Including excise but excluding Parrot Dog sales a year earlier, Moa said revenue was 21 percent higher at $6.19 million.

Losses before interest, tax, depreciation and amortisation narrowed to almost $1.2 million from almost $1.3 million a year earlier.

Executive chair Geoff Ross said the firm continues to work at being break-even for the final half of the March financial year and said summer trading to date had been “broadly in line with expectations.”

“Myself and the board are optimistic with the strategic direction of the business and the success we are having in the New Zealand market. Our role is clear, which is to continue to build strong top line, with a real focus to drive towards profitability, and find creative solutions for building scale through partnerships like we have secured with Constellation Brands in New Zealand.”

Auckland-based Moa was founded in 2003. It has reported losses consistently since listing in November 2012 after an initial public offering at $1.25 a share that raised $15 million.

The shares last traded at 43 cents and are down about 10 percent this year.

Today’s accounts show the firm, which raised a net $2.6 million through a June share placement, had a net cash outflow from operations of $2.65 million in the period, up from $1.45 million a year earlier.

Cash at the end of September was $793,000, from $1.5 million a year earlier and $987,000 at the end of March.

New Zealand revenue, including excise, increased to $5.7 million during the six months, from $5.3 million a year earlier. The operating loss was barely changed at $1.1 million.

Export revenue in the period fell to $473,000, down almost 10 percent from a year earlier, although losses narrowed to $60,000 from $177,000 a year earlier.

(BusinessDesk)

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