Moa Group narrows its FY17 loss as revenue continues to lift
Moa Group, the Marlborough-based brewer, reported a slightly narrower full year net loss as revenue lifted 26 percent and gross margin improved.
The loss was $2.4 million in the 12 months ended March 31 versus a loss of $3 million a year earlier, equal to a loss of 4.6 cents per share versus 6.2 cents per share in the prior period, the Auckland-based company said in a statement. The result was in line with guidance of between $9.5 million and $11 million. it included distribution for ParrotDog Brewery and Lewis Road Liqueur for part of the year.
Sales rose 26 percent to $10.3 million and its gross margin grew 27 percent to $3.05 million versus $2.4 million in the prior year. Earnings before tax, depreciation and amortisation showed a loss of $1.96 million versus a loss of $2.73 million in the prior year.
"Moa's growth, improving gross margins and ability to control costs gives us confidence that during FY18 Moa will reach a point where it will pass through into profitability on a monthly basis," said chief executive Geoff Ross. Moa continues to make gains in New Zealand and export markets, he said.
The company cited recent Nielsen Scantrack data that shows the Moa Brand has the number one and number two products in the 12-pack segment of craft beer in New Zealand grocery and the number one spot in the singles segment of craft beer.
Ross also noted that Moa will add its first China-based employee this year, the first step towards creating an Asian hub for Moa to support growth in China and other Asian markets like Hong Kong and Korea.