1st December 2020 By Paul Yandall | firstname.lastname@example.org | @foodtickernz
Moa Group Limited has reported an after tax loss of $415,000 for the six months to 30 September 2020, up from the $1.6m loss it made for the corresponding period last year.
The NZX-listed hospitality and beverage company said on Friday that its revenue fell by 45% to $9.89m over the period.
However, its operating earnings increased to $686,000, up 106% on last year’s results, thanks to reductions in direct, employee and marketing costs.
“2020 continues to provide significant challenges both here in New Zealand and around the world,” the company’s executive chair, Geoff Ross, said.
“While the hospitality industry is one of the more at risk sectors, the Board are confident in the cautious approach management have taken, while taking advantage of the opportunities and upside where available.”
Moa said its hospitality business “took rapid proactive action” to manage the impact of venue closures during the country’s first Covid-19 alert level 4 lockdown.
“Initiatives included pay reductions for both management and venue staff, obtaining support from landlords and the group’s banking partner, and completing a substantial equity raise across April and May 2020,” the company said.
“The group was eligible to receive all wage subsidies, which were critical in ensuring that all staff were able to be retained in employment.”
Moa’s hospitality business bore the brunt of lockdown with revenue over the six months falling by 56.9% to $4.88m, compared to the corresponding period a year ago. Its beverage business saw revenue drop by 25% to $5.02m.
Despite the difficulties, Moa said it was exploring “strategic options for expansion”.
“The solid trading performance for the six months, in spite of the difficulties in the Brewing business, demonstrate that the underlying operations of the group are well established and provide a good base to allow the group to take advantage of other opportunities where they arise.”
No dividend was declared and Moa’s share price rose slightly from 21.5c on Friday morning to 23.0c by close of day.
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