Moa confirms smaller first-half loss

Moa Group confirmed a smaller first-half loss as increased sales volumes helped widen its gross margin, and as the unprofitable craft beer brewer slashed its spending on sales and marketing.

The loss narrowed to $1.7 million, or 3.5 cents per share, in the six months ended Sept. 30, from a loss of $3.2 million, or 9.5 cents, the Auckland-based company said in a statement. Revenue rose 32 percent to $3.3 million on a 43 percent increase in the volume of beer sold to 978,000 litres, while gross margin widened to 29 percent from 20 percent a year earlier.

Total expenses dropped 30 percent to $2.7 million, due largely to a 36 percent decline in Moa's spending on sales and marketing to $1.1 million.

"The board is focused on ensuring bottom line performance continues to improve by increased sales, better margins and tight control of costs," the company said. "The focus markets for Moa remain New Zealand and Australia where our channel to market includes our own sales team."

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.

Moa said the first half is typically slower for the company and it anticipates a faster increase in the volume sold through the remainder of the financial year.

The shares last traded at 50 cents, and have climbed 23 percent this year. The stock was listed at $1.25 in late 2012.