Moa loss meets expectations
Listed brewer Moa has reported a $5.81 million loss for the year to March 31, more than triple its deficit last year.
The Blenheim-based craft brewery had revenue of $4.59m, up 87 per cent, from $2.45m in 2013.
In the second half of the year Moa managed to more than double revenues to $3.2m, from first-half sales of $1.4m.
Chief executive Geoff Ross said the second-half sales were encouraging as Moa wanted to gain momentum to become a "must stock brand with market clout" on both sides of the Tasman.
Ross said the first six months were particularly negative for the company across the board, with operating profit for the first half of the year only $195,000 but improving to $597,000 for the second half.
"However changes made have us back on the right track, with a particularly motivated and confident team in the market, getting the required results," he said.
Expenses for the year ballooned out to $6.46m, up from $2.75m.
The brewing company yesterday announced a long-term contract to continue the majority of its brewing at Nelson's Stoke family brewing site, in order to control costs.
Ross said the deal would provide efficiencies of scale to reign in costs of production and resulted from delays in its resource consent application to expand its home plant in Blenheim was held up.
The Blenheim base will be used for higher margin craft brews.
"In short this gets us the efficiencies of scale without significant capital investment," Ross said.
"The market opportunity is huge and this gives us the capacity to realise that opportunity."
The loss was within the guidance range of between $5m and $6m, incurred while the company said it was investing in growth both here and in export markets.
Shares in Moa dropped 2 cents to 58c, off the back of the result announcement, but recovered slightly and recently traded at 59c a share.