Moa Group posted a wider first-half loss after the unprofitable boutique beer maker restructured its fledgling business and changed distribution and brewing arrangements to underpin future growth.
The Auckland-based company posted a loss of $3.21 million, or 9.5 cents a share, in the six months ended Sept. 30, from a loss of $3.04 million, or 10.1 cents, a year earlier, it said in a statement.
Revenue rose 71 percent to $2.5 million, while the company took a one-time charge of $438,000 to write down packaging, old stock, plant and glass moulds following its decision to change its local supplier. That compares with one-time charges of $353,000 in the year-earlier period to end its New Zealand and Australian distribution agreements.
Moa, headed by chief executive Geoff Ross and chairman Grant Baker who developed the 42 Below vodka brand, has changed to a more direct distribution model, contracting out brewing for many products to McCashin's brewery in Nelson and raising $5.75 million from shareholders to fund growth. The company's gross profit margin improved to 19.7 percent in the first half, from 13.6 percent a year earlier as it focused on improving New Zealand sales.
"We expect to see improvements in gross margin as we bank the gains from changes in operational processes, including new contracted production, bottle supply, packaging formats and the benefits of further volume growth," Ross said in the statement. "We are well capitalised and well positioned for future growth. The coming 12 months will see a continued focus on New Zealand to build the right foundations before we increase our focus on larger export markets, in particular Australia followed by the United States."