Moa Group announces annual results

Moa Group Limited (NZX: MOA) ("Moa", "the Group"), New Zealand's own brewing and hospitality company, today reports its results for the year ended 31 March 2020. The Group reported total revenue of $38 million compared to $16 million in the prior year, the significant increase reflected the addition of the Hospitality business during the year. The Group broke even at an underlying EBITDA level compared to a loss of $2.0 million in the prior year. Including the one-off acquisition and restructuring costs incurred during the year and the significant non-cash charges of depreciation, amortisation and interest, net earnings after tax were a loss of $4.0 million compared to a loss of $3.0 million in the prior year. Adjusting for the impact of these non-cash items resulted in positive cash from operations of $2.2 million compared to cash outflows of $3.5m in the prior year. First quarter trading has been stronger than expected, with both businesses demonstrating a significant uplift through Alert Levels 2 & 1. This trading has been positive, however, the Group expects the Hospitality market to continue to be muted as the industry faces significant uncertainty over the near to medium term. The Group will continue to focus on controlling costs and operating a lean business model as it adjusts to a new normal. Due to the uncertain trading environment the Group is unable to provide guidance on earnings for FY21 at this time. Moa Group Executive Chair Geoff Ross said "The recent months have been full of challenges for Moa as we grappled with many changes across our business. We are particularly pleased that Savor Group has been integrated seamlessly into Moa Group to form a strong Moa Hospitality business and the momentum that has built across the year has been encouraging. It has been great to see the cash turnaround in Moa Beverages as we proactively sought ways to reduce costs and innovate with new and exciting products. "We have not been immune to the outbreak of COVID-19 with many of our venues shutting as the New Zealand government entered Alert Levels 3 and 4. While we acted quickly to maximise revenues through a new online home delivery business, Savor Goods, COVID-19 has had a significant negative impact on our business in the second half of the year. "However, our new cornerstone shareholder and an oversubscribed capital raising of $8.3 million brings new potential for the year ahead and we are excited to continue our vertical strategy with an aim to be a 'gate to plate' and 'vat to tap' full-service hospitality group." For more information refer to the attached release Geoff Ross (Executive Chair): 021 424 219 End CA:00355327 For:MOA Type:FLLYR Time:2020-06-26 15:19:48