The Savour Group hospitality chain added a bright sheen to Moa Group's first-half result with positive operating earnings, albeit a little softer than the brewer had flagged earlier this year.
Moa's hospitality arm reported earnings before interest, tax, depreciation and amortisation of $1.5 million in the six months ended September 30 on revenue of $11.3m, more than making up for the brewing arm's $774,000 ebitda loss on revenue of $6.7m.
The craft-beer maker bought Savour in April for $13 million upfront in cash and shares, with a second $4.9m tranche due to be paid next April. Moa's management believe a further $1.9m - of a further $3m payment conditional on performance targets being met - will be paid.
At the time of the deal, Moa said Savour would add $26m of revenue and contribute $3.6m to earnings in the year ending March 2020.
The group reported a net loss of $1.6m in the six months ended September 30, compared to a loss of $1.4m a year earlier. That included depreciation of $1.2m, an increase due to new accounting standards, and $180,000 of acquisition and restructuring costs.