Moa Group chief executive Geoff Ross (left) and founder
Josh Scott. Photo by Peter McIntosh.
Craft beer brewer Moa Group has more than doubled its
sales volume during the past year and is set for another
production boost, having aligned itself with Nelson's
For the financial year to March, Moa increased sales volumes
from 40,000 cases in the first six months to 96,300 but
expansion costs are mounting and capital-raising could be on
Revenue for the year was $4.6 million, and Moa posted a
before-tax loss of $5.8 million, as expected, compared with a
$1.9 million loss the year before.
Moa's production target for the year was met, at 136,000
cases, or 3.67 million bottles.
Chief executive Geoff Ross said the before-tax loss was
within earlier guidance of between $5 million and $6 million,
as Moa invested for growth in domestic and export markets.
''There is a race on to become the dominant craft [beer]
player, with data confirming we are now moving the fastest,''
Following a high of $1.25 in July-August last year, Moa
shares plunged then trailed down to a year-low of 50c in
Yesterday's trading was slightly down, around 60c.
Craigs Investment Partners broker Peter McIntyre said while
the McCashin's deal had solved ''one riddle'' of boosting
production, Moa's revenue growth was overshadowed by
expansion costs of $6.5 million.
Moa chairman Grant Baker said cash reserves were $4.1 million
and major shareholders had committed to provide financial
support for it to continue its growth plans.
''The company is looking at a range of financing alternatives
and timing and we will keep the market abreast of plans as
soon as they are finalised,'' Mr Baker said.
Mr McIntyre said Moa might seek to secure further capital,
possibly during the next 12 to 18 months.
Moa has been attempting to expand its Marlborough brewery,
but appeals over its resource consents had ''significantly
delayed production expansion plans'', prompting the decision
to enter a long-term contract brewing agreement with
long-established McCashin's, the founder of Mac's brewery.
Under the long-term contract, all Moa's high-volume
production will move to the McCashin's brewery, while its
specialty brews remain at its Blenheim home brewery, APNZ