Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Moa boosts first quarter sales, expects higher margins

Moa boosts first quarter sales, expects higher margins to drive profits

By Tina Morrison

July 22 (BusinessDesk) - Moa Group, the unprofitable boutique beer maker, increased first quarter sales volumes 95 percent after moving to a more direct distribution structure in New Zealand, its largest market.

Beers sales volumes rose to 264,000 litres in the three months ended June 30, from 135,000 litres in the year earlier period, the Auckland-based company said in a statement. Moa didn't detail its first quarter sales value or profitability.

The brewer, which went public in 2012, missed its earnings targets last year and called on the financial support of its major shareholders following lower-than-expected sales that it blamed on problems with its previous distributor. Moa said it is has doubled its market share in supermarkets to 7.2 percent since changing its sales and distribution structure in October, and is now the fourth-biggest craft beer behind rival brands Monteiths, Macs and Boundary Road, which are owned by DB Breweries, Lion and Independent Liquor respectively.

The company said it expects to boost its gross margin in the current financial year, without providing a target. Last financial year the gross margin rose to 19 percent in the second half from 14 percent in the first half, it said.

"We are confident that by year end the margin the business delivers will be substantially greater," the company said. "This will considerably improve the timeframe to achieve profitability."

Moa expects to update shareholders on its capital management plans at its annual meeting on Thursday.

At the end of its financial year on March 31, the company had $4.1 million of cash reserves, down from $11.5 million a year earlier and said it was looking at a range of financing alternatives to ensure it had adequate capital resources to support its growth plans.

Pioneer Capital, which owns 24 percent of the company, and The Business Bakery, on 23 percent, provided Moa with a letter of commitment to provide financial support enabling the group to continue to operate for at least a year, according to its annual accounts.

Shares in Moa last traded at 42 cents, and have shed 66 percent the past year, the second-worst performer on the NZX All Index of 115 stocks.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news