MOA Trading Update – Interim Results

Moa Group Limited
Financial Statements
for the six months ended
30 September 2018

Moa Group Limited
Index to the Financial Statements
30 September 2018



Page
Unaudited Interim Statement of Comprehensive Income 2
Unaudited Interim Statement of Financial Position 3
Unaudited Interim Statement of Movement in Equity 4
Unaudited Interim Statement of Cash Flows 5
Notes to the Financial Statements 6-9

2

Moa Group Limited
Interim Statement of Comprehensive Income
For the 6 months ended 30 September 2018





The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

All profit/(loss) and total comprehensive profit/(loss) is attributable to the Parent Company shareholders and is from continuing
operations.













6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201830 SEPTEMBER 201731 MARCH 2018
UNAUDITEDUNAUDITEDAUDITED
NOTES$'000$'000$'000
Revenue6,190 5,841 13,759
Excise(1,596) (1,294) (3,306)
Net Revenue4,594 4,547 10,454
Cost of sales(3,374) (3,235) (7,454)
Gross profit1,220 1,311 2,999
Expenses:
Distribution(650) (445) (1,168)
Administration(791) (958) (1,983)
Sales and marketing(1,190) (1,387) (2,380)
Finance income and expense3 2 2
Total expenses(2,627) (2,789) (5,529)
Other gains / (losses)10 (11) (18)
Loss before income tax(1,397) (1,488) (2,548)
Income tax expense- - -
Loss for the period(1,397) (1,488) (2,548)
Other comprehensive income and expenses- - -
Total comprehensive loss for the period(1,397) (1,488) (2,548)
Losses per share for loss attributable to the ordinary equity holders of the Company during the period
Basic losses (cents per share)(2.4) (2.7) (4.7)
Diluted losses (cents per share)(2.4) (2.7) (4.6)
Loss before income tax(1,397) (1,488) (2,548)
Adjusted for:
Depreciation & Amortisation214 202 473
Finance income and expense7 (2) (2)
Earnings before interest, tax, depreciation and amortisation (EBITDA)(1,176) (1,288) (2,078)

3


Moa Group Limited
Interim Statement of Financial Position
As at 30 September 2018




The above Statement of Financial Position should be read in conjunction with the accompanying notes.

The Board of Directors authorised the statements presented on pages 2 to 12 for issue on 29 November 2017.
For and on behalf of the Board

Geoff Ross
Executive Chair


Craig Styris
Chair of the Audit and Risk Committee


30 SEPTEMBER 201830 SEPTEMBER 201731 MARCH 2018
UNAUDITEDUNAUDITEDAUDITED
NOTES$'000$'000$'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents793 1,526 987
Trade and other receivables2,519 2,126 2,175
Derivative Financial Instruments18 - -
Inventories2,892 1,830 1,937
Total current assets6,222 5,482 5,099
NON CURRENT ASSETS
Trade and other receivables714 - -
Investments216 180 180
Plant and equipment2,314 2,505 2,338
Intangibles430 491 461
Total non-current assets3,674 3,176 2,979
Total assets9,896 8,659 8,078
LIABILITIES
CURRENT LIABILITIES
Trade and other payables3,093 2,087 2,499
Derivative financial instruments- 6 5
Total current liabilities3,093 2,092 2,504
Total liabilities3,093 2,092 2,504
Net assets6,803 6,566 5,574
EQUITY
Contributed equity5 29,188 26,482 26,528
Reserves82 95 116
Accumulated losses(22,467) (20,011) (21,070)
Total Equity6,803 6,566 5,574

4



Interim Statement of Movements in Equity
For the 6 months ended 30 September 2018





The above Statement of Movements in Equity should be read in conjunction with the accompanying notes.

ATTRIBUTABLE TO EQUITY HOLDERS OF MOA GROUP LIMITED
SHARE CAPITAL
ACCUMMULATED
LOSSES
SHARE
ENTITLEMENT
RESERVETOTAL EQUITY
$'000$'000$'000$'000
Opening balance as at 1 April 201726,041 (18,524) 113 7,630
Total comprehensive loss for the period- (1,488) - (1,488)
Share based payments- - 15 15
Issue of shares in lieu of fees40 - - 40
Net proceeds from issue of new shares319 - - 319
Employee share options exercised82 - (33) 49
Balance as at 30 September 201726,482 (20,011) 95 6,566
Total comprehensive loss for the period- (1,059) - (1,059)
Share based payments25 - 18 43
Issue of shares in lieu of fees- - - -
Net proceeds from issue of new shares(2) - - (2)
Employee share options exercised23 - 3 26
Balance as at 31 March 201826,528 (21,070) 116 5,574
Total comprehensive loss for the period- (1,397) - (1,397)
Share based payments- - - -
Expired Options- - (22) (22)
Issue of shares in lieu of fees- - - -
Net proceeds from issue of new shares2,625 - - 2,625
Employee share options exercised36 - (12) 24
Balance as at 30 September 201829,188 (22,467) 82 6,803

5




Moa Group Limited
Interim Statements of Cash Flows
For the 6 months ended 30 September 2018






The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201830 SEPTEMBER 201731 MARCH 2018
UNAUDITEDUNAUDITEDAUDITED
NOTES$'000$'000$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers5,178 5,662 13,792
Payments to suppliers and employees(7,831) (7,057) (15,481)
Interest received3 2 2
Direct/indirect taxation received/(paid)3 (59) (71)
Net cash flow from operating activities7(2,647) (1,451) (1,758)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments(36) - (180)
Payments for plant and equipment(157) (78) (151)
Payments for intangibles(2) (12) (13)
Net cash flow from investing activities(195) (90) (344)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issue of shares52,648 368 389
Net cash flow from financing activities2,648 368 389
Net Increase/(decrease) in cash and cash equivalents(194) (1,174) (1,713)
Cash and cash equivalents at the beginning of the period987 2,700 2,700
Cash and cash equivalents at the end of the period793 1,526 987

6

1 General information
Moa Group Limited (‘the Parent’ or ‘Company’) and its subsidiary (together ‘the Group’) operate in the beverage
sector, brewing and distributing super premium craft beer and cider. The Company has operations in New Zealand
and sells predominantly to the New Zealand market, with a focus on growing exports to Asia and sales to other
international markets.
The Group’s business is highly seasonal with the October to March period representing a disproportionate share of
revenue and cash receipts.
The address of its registered office is 70 Richmond Road, Grey Lynn, Auckland, 1021.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 29
November 2018.

2 Basis of preparation of interim year report
The Group consists of profit-oriented companies and the condensed consolidated interim financial information for the
six months ended 30 September 2018 has been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). These financial statements comply with NZ IAS 34 ‘Interim Financial Reporting’ and
with International Accounting Standard 34 (IAS 34). The condensed consolidated interim financial information should
be read in conjunction with the annual financial statements for the period ended 31 March 2018, which have been
prepared in accordance with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards (IFRS).

3 Summary of significant accounting policies
The accounting policies applied are consistent with those applied when preparing the annual financial statements for
the year ended 31 March 2018 except for the following new reporting standards applicable for reporting periods
commencing after 1 January 2018.

Reporting under NZ IFRS 9 for Financial Instruments. The Group has assessed this reporting standard and has
made no material changes to its reported results.

Reporting under NZ IFRS 15 for Revenue from Contracts with Customers. The Group has assessed this reporting
standard and made changes to its reporting of Revenue
a) Excise in New Zealand is a production tax paid by the Group and then forming part of the price charged to
customers, the Group will now include the amount of excise charged to customers in Revenue.
b) The Group makes payments to its Customers. Payments that relate to the goods delivered to its Customers
are deducted from Revenue. Payments relating to services provided are treated as Operating Expenses.
There is no change for comparative reporting periods.
c) The Group has contracts with customers and any Contract Assets are included on the Interim Statement of
Financial Position as Trade and Other Receivables. There is no change for comparative reporting periods.

The Group advises that there is no change to the timing of revenue recognition but the amount of recognised
revenue is impacted by excise taxes. This change is presented on the Interim Statement of Comprehensive Income
by including a line termed Net Revenue (as previously reported) and adding new lines at the head of the Interim
Statement of Comprehensive Income for Revenue and Excise. As a result $3,306,000 has been added to Revenue
for the year ending 31 March 2018 and $1,294,000 has been added to Revenue for the six months ending 30
September 2017.

Otherwise there are no other new accounting standards, or amendments to existing standards that are effective for
the six months ending 30 September 2018 which are expected to have a material impact on the Group.

7

4 Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of Directors.

Although certain geographies do not currently meet the NZ IFRS 8 quantitative thresholds, management has
concluded that these segments should be reported as they are closely monitored by the chief operating decision
maker as potential growth segments and are expected to materially contribute to Group revenue in the future.

The chief operating decision maker assesses the performance of the operating segments based on a measure of
EBITDA (Earnings before interest, taxation, depreciation and amortisation). Interest income and costs are not
allocated to segments as this type of activity is driven by the Group’s head office function which manages the cash
position of the Group. Head office costs are allocated to New Zealand as this segment represents the largest
proportion of the Group’s sales.

The segment information provided to the chief operating decision maker for the reportable segments is as
follows:




Revenues from external customers are derived from the sale of goods in the beverage sector.

The total of non-current assets is $3,674,000 (31 March 2018: $2,979,000; 30 September 2017: $3,176,000), all of
which are located in New Zealand.

Segment assets and liabilities are not included within the reporting to the chief operating decision maker and hence
have not been included within the segment information tables above.

In November 2017 the Group discontinued sales of the agency line of Parrot Dog beers in New Zealand. Included in
Revenue for previous periods is $758,000 for the six months ending 30 September 2017 and $1,027,000 for the
twelve months ending 31 March 2018. Without these discontinued lines Revenue in the six months ending 30
September 2018 of $6,190,000 compares with Revenue of $5,083,000 in the six months ending 30 September 2017,
an increase of 21%.
NEW ZEALANDEXPORTTOTAL
$'000$'000$'000
Revenue5,317 524 5,841
EBITDA(1,110) (177) (1,288)
Depreciation and amortisation(202) - (202)
Income tax expense- - -
Expenditure on fixed and intangible assets91 - 91
NEW ZEALANDEXPORTTOTAL
$'000$'000$'000
Revenue12,589 1,170 13,759
EBITDA(2,008) (70) (2,078)
Depreciation and amortisation(473) (473)
Income tax expense-
Expenditure on fixed and intangible assets164 164
NEW ZEALANDEXPORTTOTAL
$'000$'000$'000
Revenue5,718 473 6,190
EBITDA(1,116) (60) (1,176)
Depreciation and amortisation(214) - (214)
Income tax expense- - -
Expenditure on fixed and intangible assets159 - 159
12 MONTHS ENDED 31 MARCH 2018
6 MONTHS ENDED 30 SEPTEMBER 2019
6 MONTHS ENDED 30 SEPTEMBER 2017

8

5 Contributed equity



The total number of authorised ordinary voting shares is 60,140,131. In addition, there are 32,489 treasury shares
where no value has been ascribed.

Share placements and rights issues

In June 2018 3,736,832 ordinary shares were issued in a private placement and in July 2018 1,651,011 ordinary
shares were issued following a Share Placement Plan.

MOA Employee Share Option Plan

In September 2015 1,220,000 options were granted at an exercise price of $0.282. Of these 713,335 options have
been exercised into ordinary shares or terminated after staff have left the Group leaving a balance of 506,665 options
outstanding.

In June 2017 120,000 options were granted at an exercise price of $0.443. Of these 60,000 options have been
exercised into ordinary shares or terminated after staff have left the Group leaving a balance of 60,000 options
outstanding.

In September 2017 240,000 options were granted at an exercise price of $0.443. Of these 140,000 options have
been exercised into ordinary shares or terminated after staff have left the Group leaving a balance of 100,000 options
outstanding.

6 Related party transactions
(a) Directors

The Directors serving during the period were:
Date of appointment
Geoff Ross Chief Executive Officer
Executive Chairman
27 August 2012
22 December 2017

Sheena Henderson Independent Director 1 October 2017

Craig Styris Non-Executive Director 27 August 2012

David Poole Non-Executive Director 17 September 2015

John Ashby Independent Director 28 January 2015 retired 3 August 2018

Rich Frank Independent Director 1 August 2018
CONTRUBUTED
SHARES$000sSHARES$000sCAPITAL $000
At 1 April 201653,630,087 26,041 - - 26,041
Voting shares converted(13,004) (6) 13,004 6 -
Staff options exercised222,483 82 - -
Shares issued to directors in lieu of fees81,559 40 - - 40
Placement shares627,986 329 - - 329
Issue costs- (10) - -
At 30 September 201754,549,111 26,476 13,004 6 26,482
-
Non voting shares converted(1) 1 -
Staff options exercised62,667 22 22
Shares issued to employees in lieu of salary43,353 25 25
Shares issued to directors in lieu of fees-
Issue costs(1) (1)
At 31 March 201854,655,131 26,521 13,004 7 26,528
-
Staff options exercised97,157 36 - - 36
Placement shares5,387,843 2,708 - - 2,708
Issue costs- (84) - - (84)
At 30 September 201860,140,131 29,181 13,004 7 29,188
ORDINARYUNLISTED NON VOTING

9


(b) Board and key management remuneration

Craig Styris’ directors fees are charged through Pioneer Capital Management Ltd and director fees for the period
were payable to Geoff Ross, Sheena Henderson, David Poole and John Ashby (to 31 July 2018). Director fees to
Rich Frank (from 1 August 2018) are payable in shares.



7 Reconciliation of loss after income tax to net cash flows from operating activities


8 Capital commitments
There are no material capital commitments at 30 September 2018.

9 Events occurring after balance date
There are no material events occurring after balance date.


6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201830 SEPTEMBER 201731 MARCH 2018
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Director Fees86 126 229
Management Fees45 105 229
Senior employees' short term benefits370 225 480
Share based payments- 6 17
501 462 956
6 MONTHS ENDED6 MONTHS ENDED12 MONTHS ENDED
30 SEPTEMBER 201830 SEPTEMBER 201731 MARCH 2018
UNAUDITEDUNAUDITEDAUDITED
$'000$'000$'000
Loss for the period(1,397) (1,488) (2,548)
Depreciation and amortisation214 202 472
Loss on disposal of fixed assets- - -
Foreign exchange (gains)/losses(33) 12 18
Change in fair value of derivatives23 - -
Shares in lieu of fees- 40 65
Share based payments(34) (18) 36
Movements in working capital:
(Increase) / decrease in inventories(955) (6) 58
(Increase) / decrease in trade and other receivables(1,060) (222) (90)
Increase in trade and other payables595 29 231
Net cash outflow from operating activities(2,647) (1,451) (1,758)

10

Corporate Directory


Directors

GEOFF ROSS Executive Chair
SHEENA HENDERSON Independent Director
DAVID POOLE Non Executive Director
CRAIG STYRIS Non Executive Director
RICH FRANK (from 1 August 2018) Independent Director


Financial Calendar

Interim results announced November
End of financial year 31 March
Annual results announced May
Annual report published June


Registered Office and address for service

70 Richmond Road, Grey Lynn, Auckland 1021
Phone +64 9 367 9841 Facsimile +64 9 637 9471 www.moabeer.com


Auditor – KPMG


Banker – Bank of New Zealand


Solicitors – Chapman Tripp


Company Publications – the Company informs investors of the Company’s business and operations by issuing an
Annual report and regular updates


Share register and shareholder enquiries

Shareholders with enquiries about transactions or changes of address should contact the share register

Link Market Services Limited
Level 7, Zurich House, 21 Queen Street, Auckland, PO Box 91976, Auckland 1142
Phone +64 9 375 5998 | Facsimile +64 9 375 5990

Other questions should be directed to the Company’s Secretary at the registered address.


Stock Exchange – the company’s shares trade on the NZX main board equity security market operated by NZX
under the code MOA.

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MOA Group Limited
Results for announcement to the market

Reporting Period 6 months to 30 September 2018
Previous Reporting
Period
6 months to 30 September 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$6190 +6%
Profit (loss) from
ordinary activities after
tax attributable to
security holder
($1397) +6%
Net profit (loss)
attributable to security
holders
($1397) +6%

Interim/Final Dividend Amount per security Imputed amount per
security
No dividend proposed No dividend proposed

Record Date n/a
Dividend Payment Date n/a

Comments: A brief Refer release


Net Tangible Asset amount per security is 15.7c

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Moa Brewing Company
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+64 9 367 9481
+64 9 367 9468
www.moabeer.com


Moa Brewing Company
70 Richmond Road
Auckland 1021
New Zealand
P.O. Box 105542

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NZX release 28th November 2018
MOA Brewing Co update – Interim Results release
MOA now growing at three times the rate of the New Zealand Craft Beer Market.

Following on from our recent market announcement Moa Brewing Company (NZX:MOA) can now confirm
the following as interim results for the six months ended 30
th
September 2018.
Moa recent results has seen the brand grow at 25% in New Zealand Supermarkets (QTR end August
2018) which is 3 times the rate of the growth seen in the total craft beer market. This has been driven
through the success of its recent new product development and its new sales joint venture with
Constellation Brands which has seen its sales force significantly grow in size to allow for much more
frequent sales calls to key customers.

Moa brand revenue was up 21% year-over-year and in September 2018 Moa replaced the Parrot Dog
agency with Ballast Point, a Constellation Brands craft beer from the United States. Overall revenue was
up 6% versus FY18 when including the Parrot Dog agency revenue, which Moa discontinued in November
2017. Under new International Financial Reporting Standards in place revenue now includes excise tax.

EBITDA loss is reported to be $1.17m compared with a loss of $1.28m in the corresponding period. Moa
confirms it continues to work on being breakeven for the final 6 months of FY19 and that summer
trading to date is broadly in line with expectations.

Geoff Ross comments: “Overall myself and the Board are optimistic with the strategic direction of the
business and the success we are having in the New Zealand market. Our role is clear which is to continue
to build strong top line, with a real focus to drive towards profitability, and find creative solutions for
building scale through partnerships like we have secured with Constellation Brands in New Zealand.”

For more information:
Contact Geoff Ross 021 424219.