Brewer Moa eyes possible purchases, must deliver profits
Moa Group [NZX: MOA], the loss-making Marlborough-based brewer whose share price has tripled in the past year, has told investors it is assessing the possibility of buying other businesses, but that they would have to add to earnings.
The brewer expects revenues of between $9 to $11 million in the 2017 financial year, excluding its recent deal to distribute Parrotdog. Revenue in the 2016 financial year was $8.2 million.
The company announced a $4 million capital raising last week alongside the agreement to distribute the Wellington-based craft brewer's products with its own from October. The deal is expected to boost Moa's gross margin from the second half of 2017.
In an update to investors today, the company said the business was tracking to plan, with gross margins improving, costs falling and that it was continuing to move towards breakeven.
Moa listed in 2012 at $1.25, but the shares fell well below that, trading at 30 cents on Sept. 15 last year. After a gradual rise to 54 cents in June 2016, shares rocketed to 92 cents a month later, prompting a please explain note from the NZX. Moa told the stock-exchange operator it continued to meet its continuous disclosure obligations.
Shares in Moa fell 2.1 percent to 93 cents.
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