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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news