Moa narrows loss on better margins, bigger volumes

The company recently received its biggest single order from a customer in Australia. Photo / File Photo

Moa Group said its first-half loss narrowed after the listed beer company lifted the volume and value of sales and improved its gross margin.

The net loss was $1.7 million in the six months ended Sept. 30, an improvement on the year-earlier loss of $3.2 million, the Auckland-based company said in a statement, citing preliminary figures. Sales rose 38 percent to $3.4 million.

Moa shares rose 5.4 percent to 39 cents and have jumped 32 percent in the past three months on optimism about market gains in Australia and that its strategy overhaul in 2013 is bearing fruit. The stock had slumped about 65 percent since its November 2012 listing.

The company overhauled its business strategy in late 2013, changing to a direct distribution model, shifting focus to the New Zealand and Australian markets, and outsourcing much of its beer production to McCashin's Brewery in Nelson while making its higher-margin specialty brews at its Blenheim site. Its 2015 net loss narrowed to $5.58 million as sales climbed 33 percent.

"The bottom line performance of Moa is now demonstrating the improvements we have been working towards, with a substantial improvement in gross margin and further volume gains," said chief executive Geoff Ross. He didn't give details of margins.

The company recently received its biggest single order, from a customer in Australia, its largest export market and said it was achieving "strong rates" of growth in markets such as Brazil and China.

"As we move into the peak selling summer months, we are forecasting further improvements in our bottom line delivery," Ross said.

Moa had $1.8 million of cash as at Sept. 30 "and the directors continue to monitor this level" but the company doesn't foresee the need for more capital "as business fundamentals continue to improve," the company said.