Beer brewer Moa Group has warned its full-year 2014 loss
could reach $6 million, well above an estimated $4.5 million
provided in a research note on October 21.
The shares dropped 6c in a couple of steps after opening at
78c before climbing to 77c. They last traded at 75c, sales
volumes of 82,000.
The group issued a trading and performance update and outlook
yesterday in which chief executive Geoff Ross said Moa's
financial result for 2014 would be significantly affected by
the various adverse circumstances that developed during the
first half of the financial year.
''During the second half, the company expects to rebuild
volume in New Zealand and grow volumes in Australia, but
there will continue to be pressure on sales and manufacturing
Moa had modelled a range of projected outcomes for 2014 and
anticipated, despite a level of confidence the revised
sales-volume targets could be achieved, it would be difficult
to limit the 2014 loss to $4.5 million, he said.
The update was released ahead of the half-year result on
On August 12, Moa advised the market it expected to fall
short of its 2014 sales-volume target by about 30%, or 60,000
nine-litre equivalent cases, largely due to an anticipated
sales shortfall in the New Zealand market.
Also on August 12, Moa said it would change its New Zealand
distributor and resume its own sales initiatives for the New
Mr Ross said the group had made a good start in its October
sales, with positive feedback from the market about both the
Moa range and the resumption of direct sales activities by
Manufacturing gross profit margin would continue to be
affected by the need for contract brewing compared to the
intended model of an upgraded and expanded brewery at the
''This situation is expected to continue for some time, as
the prospect for brewery expansion at the Jacksons Rd
property remains unresolved.''
In late July, Moa was awarded resource consent to expand and
upgrade its existing brewery operations in Marlborough.
The consent was appealed by those opposed to the original
application and the cost and timing of an appeal had forced
the company to rethink its manufacturing options for the next
12 months, he said.
The company had made no decision on whether to proceed with
its originally planned brewery expansion, given the
uncertainty of an outcome on the resource consent appeal and
the reduced volumes and lower-than-projected financial
results for the year to date.