Moa narrows first-half loss, eyes new tie-ups

Thursday 24 November 2016 12:12 PM

Moa narrows first-half loss, eyes new tie-ups

By Jonathan Underhill

Nov. 24 (BusinessDesk) - Moa Group narrowed its first-half loss after lifting sales while trimming costs, and said it expects to continue driving revenue growth while holding expenses at bay.

The loss narrowed to $1.2 million in the six months ended Sept. 30, from $1.69 million a year earlier, the Marlborough-based brewer said in a statement. Sales climbed to $3.7 million from $3.3 million, while expenses fell to $2.4 million from $2.7 million.

Moa has previously given guidance for full-year revenue of between $9 million to $11 million, from $8.2 million in the 2016 year, but the forecast doesn't include New Zealand distribution for Wellington-based craft brewer Parrotdog, which began on Oct. 1. Moa shares rose 1.3 percent to 80 cents and have increased 64 percent in the past 12 months, while the S&P/NZX 50 Index gained about 13 percent. They listed in 2012 at $1.25.

The company raised $4 million in September via a placement and rights offer, although the rights issue component of $1.26 million is recorded as an event after balance date. It had cash on hand of $3.1 million at Sept. 30, from about $1.8 million a year earlier.

Moa cited AC Nielsen Grocery data to show it ranks third in its share of the New Zealand craft beer market behind the craft-style beers of major brewers Lion and DB Breweries. In the first half, the volume of New Zealand sales rose 15 percent to 923,904 litres, while its gross margin widened.

Growth in New Zealand will accelerate through the second half helped by the launch of a new Reserve 6-pack range and as it rolls out its pale ale cans nationwide, it said.

Moa brews its premium beers at its own facility in Blenheim and outsources the rest of its production. Following the tie-up with Parrotdog, the company "can now consider partnerships and acquisitions to cement its position in the New Zealand craft beer landscape in 2017," it said today.

(BusinessDesk)

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