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Moa narrows full-year loss, lifts volumes

The loss was $2.9 million in the 12 months ended March 31.

Jonathan Underhill
Thu, 28 Apr 2016

Moa Group [NZX: MOA] narrowed its full-year loss after the beer company increased sale volumes and cut operating costs.

The loss was $2.9 million in the 12 months ended March 31, from a loss of about $5.6 million in 2015, the Auckland-based company said in a statement. Sales rose 35% to $8.2 million.

Moa shares have rebounded since late August, trading recently at 66 cents, after a 12-month gain of 78%, but short of its early 2013 highs of $1.16. The stock was listed at $1.25 in late 2012.

The company changed its strategy in late 2013 to a direct distribution model, shifting focus to the New Zealand and Australian markets and outsourcing much of its production to McCashin's Brewery in Nelson to focus on higher-margin beers at its Blenheim site.

The company has grown sales and continues to lead the category, while improving margin and decreasing operating costs, said chief executive Geoff Ross.

"Much of the improvements made to operating costs only took effect in the second half of the year. So we look forward to the benefit of these for the full 2017 year," he says.

The volume of beer sold rose 43% to 2.5 million litres while operating costs fell 28% to $4.8 million, the company said.

Several months of the second half of 2015 "were positive in building cash despite growth and the company building stock for the coming year," Mr Ross says.

"Cash at the end of the financial year was $1.5 million, down from $1.8 million at the half year. The directors continue to monitor the company's cash position and are comfortable with the capital structure at this stage."

Moa expects to add South Korea to export markets including Australia, China, Brazil and Singapore. Expansion in Australia, its biggest export market, had been "considerable."


Jonathan Underhill
Thu, 28 Apr 2016
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Moa narrows full-year loss, lifts volumes