Moa Group, the boutique beer maker which raised $16 million in a float last year, expects to post a bigger annual loss than flagged in its offer document after saying it would miss its sales forecast and its board will embark on a strategic review to try and improve its profitability.
The Auckland-based company anticipates it will post a loss of between $5 million and $6 million in the 12 months ending March 31, 2014, at least twice the forecast loss of $2.5 million in its 2013 prospectus. The profit warning comes after the brewer said it would miss its sales forecast by 30 per cent, blaming its distributor, Treasury Wine Estates, for failing to deliver on the agreed targets.
Moa's board and management are considering "a range of strategic initiatives to improve the overall profitability and viability of the business model in each of its markets and in terms of its manufacturing capability, both for the immediate and medium terms," it said in a statement.
The brewer, headed by the founder of vodka maker 42Below Geoff Ross, has since switched its model to distribute directly to wholesaler Tasman Allied Liquor through third-party logistics providers.
The company's local margins were hit by "a lack of focus and targeting on the higher margin Reserve and Estate ranges" while its US market has struggled from the strong kiwi dollar.