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Moa posts bigger EBITDA loss than forecast amid marketing spend-up

Thursday 30th May 2013

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 Moa Group, the boutique beer maker which raised $16 million in a float last year, reported a bigger loss on an earnings before interest, tax, depreciation and amortisation basis than was flagged in its prospectus as it spent more on marketing.

Including the five months before Moa was listed, the Auckland-based company made an EBITDA loss of $3.61 million in the 12 months ended March 31, more than the $3.47 million forecast in its November prospectus. Sales jumped 81 percent to $4.38 million from a year earlier, tracking just ahead of forecast, while its spend on sales and marketing of $1.09 million was more than the $860,000 expected.

"We are a growth company and top line growth, which illustrates customer preference and brand strength, is our focus," chief executive Geoff Ross said in a statement. "There was a little more spend on marketing, as we invested in the New Zealand PGA golf tournament for this year and the next, which is an opportunity we see as a valuable addition to the Moa brand story."

The official financial statements cover the seven months ended March 31, and show Moa made a loss of $1.92 million, or 7.3 cents per share, on sales of $2.45 million.

Moa listed on the stock exchange in November at $1.25 a share, raising $15 million from institutional investors and $1 million from the public to pay for a new brewing facility.

The $6.1 million brewery is going through its resource consent process at the moment, with a hearing for the company's plans scheduled for June 24. Construction is expected to begin in the next few months.

"While this is later than planned, we are confident that we have options for the required capacity and flexibility throughout this upgrade to meet our anticipated growth in the current financial year," Ross said.

The shares were unchanged at $1.20, having declined 4.8 percent this year. The stock is rated a 'hold' by Forsyth Barr analyst James Bascand, who has a target price of $1.56.

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