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

 

Moa says 2nd half trading loss narrowed

Moa says 2nd half trading loss narrowed on path to breaking even


By Paul McBeth

May 2 (BusinessDesk) - Moa Group says it narrowed its trading loss in the second half of the financial year as it works towards breaking even after seven years of red ink since the beer brewer listed.

The company said it's trading loss was $600,000 in the six months ended March 31, excluding one-off costs, such as the undisclosed bill associated with the $13 million acquisition of hospitality firm Savor Group. That implies Moa will report an annual trading loss of about $2 million, compared to a loss of $2.5 million in the March 2018 year.

Sales were up 15 percent for the year, implying revenue of $12 million compared to the $10.5 million a year earlier. The company said three of the last six months of trading were in profit.

"Moa Brewing Company continues to build toward break-even on a standalone basis, as demonstrated in recent summer months," executive chair Geoff Ross said in a statement.

The company has yet to turn a profit since its controversial listing in late 2012, when it included advertising in its investment statement and photographs of young women in skimpy outfits drinking beer. It sold shares at $1.25 apiece, raising $15 million to expand its Nelson brewery. That expansion was blocked and it outsourced production to nearby McCashin's Brewery.

The beermaker had issues with its then-distributor Treasury Wine Estates the following year, dumping them for failing to meet new targets. After several years of direct distribution, it decided more recently to team up with multi-national Constellation Brands on distribution.



Moa's latest attempt to reinvigorate the business was the acquisition of Savor for $13 million upfront in cash and shares, rising to $21.4 million if earnings targets are met.

The shares recently traded at 38 cents, matching the recent issue price to Savor's vendors.

"Moa Group acquired Savor Group on April 1 - a vertical acquisition of bars and restaurants in Auckland which will more than triple the revenues of the company, and is intended to ensure sustainable future profitability, and provide several synergies," Ross said.

The expanded beermaker and hospitality firm will give an indication of trading for the full group when it formally reports in late May.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Auckland House Price Deflation Accelerates

The decline in Auckland house prices is starting to accelerate as the number of house sales plummet, not just in Auckland but in most parts of the country. More>>

ALSO:

'Wellbeing Budget': Grant Robertson Pre-Budget Speech

There has been a fair amount of attention in the media here and internationally on this year’s budget – our country’s first Wellbeing Budget. Enough for me to be invited to the recent Spring Meetings of the World Bank and International Monetary Fund, to talk about our approach... More>>

ALSO:

New Vodafowners: Vodafone Sale To Infratil Consortium

Vodafone Group Plc has today announced the conditional sale of 100% of Vodafone New Zealand Limited to a consortium of long-term investors, New Zealand-based Infratil, and Canada-based Brookfield Asset Management. More>>

ALSO:

Ice Cream: Global Giant Buys Tip Top From Fonterra

Froneri has today agreed to acquire the iconic New Zealand ice cream business Tip Top from global dairy co-operative Fonterra with completion expected by the end of the month. More>>

ALSO: