Moa Group Limited Issue FY19 Audited Financial Statements

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Moa Group Limited
6/46 Maki Street, Westgate
Auckland 0814
New Zealand
P.O. Box 105542

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NZX release 30 May 2019
MOA GROUP SHOWS MORE GROWTH AS IT MOVES INTO NEW VERTICAL PHASE WITH SAVOR GROUP.

Moa Group Limited (NZX:MOA) announces today its full year audited result.

The Moa brewing and cider business grew consolidated revenue including excise from $13.7m in FY18 to
$15.9m in FY19, which is another year of impressive overall growth of 15.6%. Overall the supermarket
channel share for Moa is now above 10% for the first time and Moa is the clear #3 Craft player in the NZ
market. Moa achieved overall supermarket annual growth of 28%, which is over 4 times the growth of the
craft beer market. (AC Nielsen MAT 21/4/19).

Overall consolidated EBITDA, allowing for one off items, is showing year on year improvement in like for
like trading conditions (as previously signalled the group is to be in profit in FY20).

The achievement of the topline momentum has come through three key areas. Firstly, Moa Brewing Co.
Limited entered into a sales venture agreement with Constellation Brands in June 2019. This has seen a
large increase in the number of sales representatives it has in the NZ market which has improved customer
reach and relationships across the NZ market. We are very pleased with not only the results but the
relationship forming with Constellation Brands. Secondly several new products have been released which
are hitting the mark with NZ beer drinkers and regularly featuring in the top innovations for not only craft
beer but the total beer market. Thirdly, Moa Brewing Co. is also continuing to increase its presence in the
on trade with new long term pouring agreements creating partnerships for future growth.

Moving beyond FY19 Moa Group Limited is focussed on its recent acquisition of the businesses of Savor
Group and is working on synergies and growth plans between the hospitality and brewing divisions. Savor
Group is a collection of premium hospitality venues in Auckland and is forecasted to drive the overall group
to over $40m in revenue and more importantly into profitability in FY20.

“The new leadership team is now in place and are working together to deliver on our strategic plans for
FY20 which will include more great beer innovation, distribution gains, and likely venue openings. With
the America’s Cup just around the corner we are also working on gearing up our waterfront venues to be
prime viewing points. With our wider business operation, we can now deliver on the profitability that we
have been working hard to deliver to our shareholders”

For more information:
Contact Geoff Ross
021 424219

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Moa Group Limited
Financial Statements
for the year ended
31 March 2019

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Moa Group Limited
Index to the Financial Statements
31 March 2019





Page
Directors’ Report 2
Auditors’ Report 3-6
Consolidated Statement of Comprehensive Income 7
Consolidated Statement of Financial Position 8
Consolidated Statement of Movement in Equity 9
Consolidated Statement of Cash Flows 10
Notes to the Financial Statements 11-28

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Moa Group Limited
Directors' Report
31 March 2019


The Board of Directors has pleasure in presenting the financial statements and audit report for
Moa Group Limited for the year ended 31 March 2019.
The financial statements presented are signed for and on behalf of the Board of Directors and
were authorised for issue on 30 May 2019.




Geoff Ross
Executive Chairman






Craig Styris
Chair of the Audit and Risk Committee

© 2019 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Independent Auditor’s Report
To the shareholders of Moa Group Limited
Report on the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Moa Group Limited (the
company) and its subsidiaries (the group) on pages
7 to 28:
i.present fairly in all material respects the Group’s
financial position as at 31 March 2019 and its
financial performance and cash flows for the
year ended on that date; and
ii.comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial position
as at 31 March 2019;
— the consolidated statements of comprehensive
income, changes in equity and cash flows for
the year then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ ISAs (NZ)’) . We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to advisory services. Subject to certain
restrictions, partners and employees of our firm may also deal with the group on normal terms within the
ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Material uncertainty related to going concern
We draw attention to Note 3(d) in the consolidated financial statements, which indicates the group’s loss for the
year of $2,987,000 and negative operating cash outflows of $3,570,000 and the need to comply with financial
covenants for continued operations. As stated in Note 3(d), these events or conditions, along with other matters
as set forth in Note 3(d), indicate that a material uncertainty exists that may cast significant doubt on the group’s
ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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There is judgement applied by the directors in forecasting earnings and cash flows of the group, which are the
basis for concluding the group is a going concern. As stated in note 22 the group has raised bank debt after
balance date to settle an acquisition. The debt facility requires compliance with certain financial covenants which
are sensitive to the financial performance of the group. Further funding may be required as forecast earnings
could be lower and or operating cash outflows could be larger than the cash and debt available.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $341,000 determined with reference to a benchmark of group revenues. We
chose the benchmark because, in our view, this is a key measure of the group’s performance.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. In addition to the matter described in the Material
Uncertainty Related to Going Concern section, we summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
Revenue recognition
Refer to Note 2(d) and 2(w) of the
consolidated financial statements.
Revenue is recognised based on
the terms of sale or distribution
agreement. In most cases, Moa
retain responsibility for goods
while in transit; therefore revenue
is recognised when the products
have been delivered to the
customer and possession taken.
Revenue recognition is a key audit
matter due to:
— Large orders potentially being
placed on or around balance
date for which there can be a
delay between the date of
dispatch and possession taken
by the customer;
— The incentives that exist for
management to recognise
sales in the period prior to
year-end.
Our audit procedures included:
— Assessing the group’s revenue recognition policy for compliance
with the accounting standards;
— Selecting a sample of transactions during the year and agreeing the
sample to cash received;
— Analysing agreements with the group’s largest customers to
determine whether group’s policies and procedures for recognition of
revenue are consistent with the accounting standards;
— Testing the recognition of a sample of revenue transactions prior to
year end to determine whether they are recorded in the correct
period. This included agreement to shipping documentation, proof of
delivery at the customer’s premises, terms and conditions of trade,
or other documentation indicating the date when the transfer of
control of the products to the customer occurred;
— Analysing credit notes issued after year end for evidence of post year
end reversal of revenues recognised during the year.
We did not find any evidence that reported revenue is materially
misstated.

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Other information
The Directors, on behalf of the group, are responsible for the other information included in the group’s Annual
Report. Other information includes the director’s report and corporate governance information and the other
information included in the Annual Report. Our opinion on the consolidated financial statements does not cover
any other information and we do not express any form of assurance conclusion thereon.
The Annual Report is expected to be made available to us after the date of this Independent Auditor’s Report.
Our responsibility is to read the Annual Report when it becomes available and consider whether the other
information it contains is materially inconsistent with the consolidated financial statements, or our knowledge
obtained in the audit or otherwise appears materially misstated. If so, we are required to report such matters to
the Directors
Use of this independent auditor’s r eport
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.

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Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Jason Doherty.
For and on behalf of
Jason Doherty
KPMG Auckland
30 May 2019

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Moa Group Limited
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2019


2019Restated 2018
NOTES$'000$'000
Revenue6 15,902 13,760
Cost of sales(12,667) (10,760)
Gross profit3,235 2,999
Expenses:
Distribution(1,527) (1,168)
Administration(1,631) (1,983)
Sales and marketing(2,499) (2,380)
Net finance expense(23) 2
Business acquisition costs(435) -
Total expenses7 (6,114) (5,529)
Other gains / (losses)8 (108) (18)
Loss before income tax(2,987) (2,548)
Income tax expense9 - -
Loss for the period(2,987) (2,548)
Other comprehensive income and expenses- -
Total comprehensive loss for the period(2,987) (2,548)
Losses per share for loss attributable to the ordinary equity holders of the Company during the period
Basic losses (cents per share)21(5.1) (4.7)
Diluted losses (cents per share)21(5.1) (4.7)
Non GAAP Measure
Loss before income tax(2,987) (2,548)
Adjusted for:
Depreciation & Amortisation433 473
Finance income and expense- (2)
Impairment of PPE134 65
Business acquisition costs435 -
EBITDA and impairment and business acquisition costs(1,985) (2,013)



Note: All loss and total comprehensive loss is attributable to the Parent Company shareholders and is from continuing
operations.

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
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Moa Group Limited
Consolidated Statement of Financial Position
As at 31 March 2019



20192018
NOTES$'000$'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents2,585 987
Trade and other receivables102,982 2,175
Derivative financial instruments4 -
Inventories112,838 1,937
Total current assets8,408 5,099
NON CURRENT ASSETS
Trade and other receivables10542 -
Investments216 180
Plant and equipment122,159 2,338
Intangibles13403 461
Total non-current assets3,320 2,979
Total assets11,728 8,078
LIABILITIES
CURRENT LIABILITIES
Trade and other payables153,617 2,499
Derivative financial instruments - 5
Total current liabilities3,617 2,504
Total liabilities3,617 2,504
Net assets8,112 5,574
EQUITY
Contributed equity1632,105 26,528
Reserves65 116
Accumulated losses(24,058) (21,071)
Total Equity8,112 5,574

The above consolidated statement of movements in equity should be read in conjunction with the accompanying notes.
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Moa Group Limited
Consolidated Statement of Movements in Equity
For the year ended 31 March 2019


ATTRIBUTABLE TO EQUITY HOLDERS OF MOA GROUP LIMITED
SHARE CAPITAL
ACCUMMULATED
LOSSES
SHARE
ENTITLEMENT
RESERVETOTAL EQUITY
NOTES$'000$'000$'000$'000
Opening balance as at 1 April 201726,041 (18,524) 113 7,630
Total comprehensive loss for the period- (2,547) - (2,547)
Share based payments25 - 33 58
Issue of shares in lieu of fees40 - - 40
Net proceeds from issue of new shares317 - - 317
Employee share options exercised105 - (30) 75
Balance as at 31 March 201826,528 (21,071) 116 5,574
Total comprehensive loss for the period- (2,987) - (2,987)
Share based payments10 - 20 30
Net proceeds from issue of new shares165,434 - - 5,434
Employee share options exercised133 - (72) 61
Balance as at 31 March 201932,105 (24,058) 65 8,112

The above statement of cash flows should be read in conjunction with the accompanying notes.
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Moa Group Limited
Consolidated Statement of Cash Flows
For the year ended 31 March 2019


20192018
NOTES$'000$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers14,508 13,792
Payments to suppliers and employees(18,108) (15,481)
Interest received- 2
Direct/indirect taxation received/(paid)31 (71)
Net cash flow from operating activities20(3,570) (1,758)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments(36) (180)
Payments for plant and equipment(325) (151)
Payments for intangibles(5) (13)
Net cash flow from investing activities(366) (344)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares5,534 389
Net cash flow from financing activities5,534 389
Net Increase/(decrease) in cash and cash equivalents1,599 (1,713)
Cash and cash equivalents at the beginning of the period987 2,700
Cash and cash equivalents at the end of the period2,585 987

Moa Group Limited
Notes to the Financial Statements
31 March 2019


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1 General information
Moa Group Limited (‘the Company’) and its subsidiaries and its interest in joint operations (together ‘the Group’)
operate in the beverage sector, brewing and distributing premium craft beers and cider. The Group has operations
in New Zealand and sells to New Zealand and Australian businesses with growing exports to the rest of the world.
The Company was incorporated in New Zealand on 27 August 2012 and acquired its subsidiary Moa Brewing
Company Limited on 1 October 2012. Savor Group Limited was incorporated 20 December 2018. Moa Brewing
Company Limited agreed a Sales Venture Agreement with Constellation Brands New Zealand Limited on 2 May
2018.
The address of its registered office is 6/46 Maki Street, Westgate, Auckland 0814.
These financial statements have been approved for issue by the Board of Directors on the 30 May 2019.

2 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied throughout the years presented unless otherwise stated.
(a) Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP). The Group is a for-profit entity for the purposes of complying with
NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and other New Zealand accounting standards and authoritative notices that are
applicable to entities that apply NZ IFRS. The consolidated financial statements also comply with International
Financial Reporting Standards. The financial statements have been prepared on a going concern basis (Note 3 (d)).
Moa Group Limited is a company registered under the Companies Act 1993 and is an FMC reporting entity under
Part 7 of the Financial Markets Conduct Act 2013. The financial statements of the Group have been prepared in
accordance with the requirements, Part 7 of the Financial Markets Conduct Act 2013 and the NZX Main Board
Listing Rules. The information is presented in thousands of New Zealand dollars.
The financial statements have been prepared under the historical cost convention, except for derivative financial
instruments that are revalued at fair value.
The preparation of financial statements in accordance with NZ IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in applying the Group's accounting policies. The
areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are disclosed in Note 4.
(b) Principles of consolidation
The financial statements incorporate the assets and liabilities of Moa Group Limited and its 100% owned
subsidiaries Moa Brewing Company Limited and Savor Group Limited, as well as interests in joint operations
(together the ‘Group’) as at 31 March 2019 and the trading results for the year then ended.
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an
entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date
on which control is transferred to the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date control ceases. From that
date they are deconsolidated.
Joint operations are a joint arrangement in which the parties that have joint control of the arrangement have direct
rights to the revenues, expenses, assets and obligations for the liabilities relating to the arrangement. These have
been proportionately consolidated into the financial statements under the appropriate headings. Joint control is the
contractually agreed sharing of control of the arrangement which exists when decisions about activities require the
consent of the parties sharing control.
The Group applies the acquisition method to account for business combinations. The consideration transferred for
the acquisition of the subsidiary is the fair values of the assets transferred, the liabilities incurred to the former
owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair
value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values
at the acquisition date.

Acquisition related costs are expensed as incurred.

Moa Group Limited
Notes to the Financial Statements
31 March 2019


12
Intercompany transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies have been applied consistently across the Group.
(c) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates, ‘the functional currency’. The financial statements are presented in
New Zealand dollars, which is the functional currency of both Moa Group Limited and its subsidiaries.

(ii) Transactions and balances
Foreign currency transactions on any date are translated into the functional currency using the
exchange rates approximating the rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the profit or loss component of the statement of comprehensive income.
(d) Revenue recognition
Revenue is measured on the consideration specified in a contract with a customer. The Group recognises revenue
when it transfers control over a good or service to a customer;
i) Beer and Cider Sales
Customers obtain control of beer and cider products when the products are delivered and have been
accepted at their premises. Revenue is recognised at this point in time. For contracts that permit the
customer to return an item, revenue is recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. Therefore, the
amount of revenue recognised is adjusted for expected returns.
Revenue is recognised net of GST, rebates and discounts.
(ii) Contract Assets and Contract Liabilities
Costs directly related to the acquisition of a contract or renewal of an existing contract are capitalised
as contract assets or slotting fees as applicable and amortised over the life of the contract.
Contract liabilities reflect payments received for services that have not yet been provided and the
payments will be recognised as revenue over time.
(e) Interest income
Interest income is recognised on a time-proportion basis using the effective interest method.
(f) Income tax
The income tax expense or revenue for the year is the total of the current year’s taxable income based on the
national income tax rate for each jurisdiction adjusted for any prior years' under or over provisions, plus or minus
movements in the deferred tax balance except where the movement in deferred tax is attributable to a movement in
reserves. The current income tax charge is calculated on the basis of tax laws enacted or substantially enacted at
balance date.
Movements in deferred tax are attributable to temporary differences between the tax bases of assets and liabilities
and their carrying amounts in the financial statements and any unused tax losses or credits. Deferred tax assets
and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are
recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each
jurisdiction. An exception is made for certain temporary differences arising from the initial recognition of an asset or
a liability. No deferred tax asset or liability is recognised in relation to temporary differences if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting
profit or loss or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only to the extent
that it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of
the temporary differences and it is probable that the differences will not reverse in the foreseeable future. The
income tax expense or credit attributable to amounts recognised in other comprehensive income is also recognised
in other comprehensive income.
Current and deferred tax assets and liabilities of individual entities are reported separately in the consolidated
financial statements unless the entities have a legally enforceable right to make or receive a single net payment of
tax and the entities intend to make or receive such a net payment or to recover the current tax asset or settle the
current tax liability simultaneously.

Moa Group Limited
Notes to the Financial Statements
31 March 2019


13
(g) Goods and services tax (GST)
The statement of comprehensive income has been prepared so that all components are stated exclusive of GST. All
items in the statement of financial position are stated net of GST, with the exception of receivables and payables,
which include GST invoiced. All items in the statement of cash flows are also stated net of GST.
(h) Excise tax
Where excise tax is a production tax it is included in the statement of comprehensive income in both revenue and
cost of sales. The excise tax component of sales is included in receipts from customers in the statement of cash
flows, and the excise tax payments are included in payments to suppliers and employees.
(i) Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are
charged to the profit or loss component of the statement of comprehensive income on a straight-line basis over the
term of the lease.
(j) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held on call with financial institutions and other short
term highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
(k) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision
for impairment. Trade receivables are due for settlement between 30-90 days from invoice date.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are
written off. A provision for impairment is established when there is objective evidence, such as default or
delinquency in payment, that the Group will not be able to collect all amounts due according to the original terms of
receivables. The amount of the provision is the difference between the asset’s carrying amount and the estimated
future cash flows, discounted to present value, if appropriate, at the effective interest rate. The movement in the
amount of the provision is recognised in the profit or loss component of the statement of comprehensive income.
The carrying amount of the asset is reduced using a provision account and the amount of the loss is recognised in
the profit or loss component of the statement of comprehensive income within ‘administration expenses’. When a
trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent
recoveries of amounts previously written off are credited against ‘administration expenses’ in the statement of
comprehensive income.
(l) Financial instruments
Financial instruments include cash and cash equivalents, borrowings, trade and other receivables, derivatives and
trade and other payables.
Financial instruments are initially recognised at their fair value less transaction costs, and subsequently measured
at their amortised cost. A financial instrument is recognised if the Group becomes party to the contractual
provisions of the instrument. Financial assets are derecognised if the Group’s contractual rights to the cash flows
from the financial assets expire or if the Group transfers the financial asset to another party without retaining control
or substantially all the risks and rewards of the asset. Financial liabilities are derecognised if the Group’s
obligations specified in the contract expire or are discharged or cancelled.
(m) Derivative financial instruments
Derivative financial instruments, including foreign exchange contracts are used to reduce exposure to market risks.
Company policy specifically prohibits the use of derivative financial instruments for trading or speculative purposes.
All the Group’s derivative financial instruments are held to economically hedge risk on committed trading
transactions.
The fair values of derivative financial instruments are determined by applying quoted market prices, where
available, or by using inputs that are observable for the asset or liability.
The Group holds derivative instruments until expiry except where the underlying rationale from a risk management
point of view changes, such as when the underlying asset or liability which the instrument hedges no longer exists,
in which case early termination occurs.
Derivative financial instruments are initially recorded at fair value and are then revalued to fair value at reporting
date. The gain or loss on revaluation is recorded either in earnings or equity depending on whether the instruments
qualify for hedge accounting and the nature of the item being hedged. For a derivative instrument to be classified
and accounted for as a hedge, it must be highly correlated with, and effective as a hedge of the underlying risk

Moa Group Limited
Notes to the Financial Statements
31 March 2019


14
being managed. This relationship must be documented from inception.
(n) Fair value estimate
The carrying value of cash and cash equivalents, receivables and payables are assumed to approximate their fair
values due to the short-term maturity of these investments.
Financial liabilities measured at amortised cost are fair valued using the contractual cash flows. The effects of
discounting are generally insignificant.
(o) Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost
comprises direct materials and where appropriate, either a contract manufacturing charge, or direct labour and an
appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal
operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Net
realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
(p) Plant and equipment
All plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of
the item can be measured reliably. All other repairs and maintenance are charged to the statement of
comprehensive income during the financial year in which they are incurred.
Depreciation is calculated using the straight-line method to expense the cost of the assets over their useful lives.
The rates are as follows:

Plant and equipment 5.0% - 50.0%
Leasehold improvements 10.0%
Furniture and office equipment 20.0% - 33.3%
Marketing and trade equipment 10.0% - 33.3%
Motor vehicles 20.0%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
the profit or loss component of the statement of comprehensive income.
(q) Intangibles
Fixed life intangibles are amortised over the life of the asset. Software is amortised over the expected useful life of
the asset, between 3 and 10 years.
(r) Impairment of non-financial assets
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable cash flows (cash generating units).
(s) Trade and other payables
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method.
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 and 60 days of recognition.
(t) Employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the reporting date are recognised in other payables in respect of
employees' services up to the reporting date and are measured at the amounts expected to be paid when the

Moa Group Limited
Notes to the Financial Statements
31 March 2019


15
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
measured at the rates paid or payable.
(u) Share based payments
The fair value of director and senior employee share schemes, under which the Group receives services from
directors and employees as consideration for equity instruments in the Group, is recognised as an expense. The
total amount to be expensed over the vesting period is determined by reference to the fair value of the options
granted, including any equity market performance conditions and excluding the impact of any service and non-
market performance vesting conditions.
Non-market performance and service conditions are included in assumptions about the number of options that are
expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied.
The Group revises its estimates of the number of options that are expected to vest based on the non-market vesting
conditions. It recognises the impact of the revision to original estimates, if any, in the statement of comprehensive
income, with a corresponding adjustment to equity over the remaining vesting period. When the options are
exercised the Company issues new ordinary shares. The proceeds received net of any directly attributable
transaction costs are credited to share capital.
(v) Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax,
from the proceeds.
(w) New Standards
Certain new standards, amendments and interpretations to existing standards have been published that are
mandatory for the Group’s accounting periods beginning on or after 1 April 2018 or later periods.
(i) Standards and interpretations adopted by the Group

NZ IFRS 9: Financial instruments
NZ IFRS 9 sets out requirements for recognising and measuring financial assets and financial liabilities.
This standard replaces NZ IAS 39 Financial Instruments and Measurements.
The Group has adopted NZ IFRS 9 and there is no material impact to the financial statements.
Financial assets which were previously classified as loans and receivables are now classified as
financial assets at amortised cost. There is no impact on the classification and measurements on the
Group’s financial liabilities.
NZ IFRS 9 replaces the ‘incurred loss’ model in NZ IAS 39 with an ‘expected credit loss model’. The
new impairment model applies to assets measured at amortised cost. This applies to the Group’s trade
receivables. The Group has determined based on historic provisions and forward-looking analysis that
there is no material financial impact on the impairment provisions.
NZ IFRS 15: Revenue from contracts with customers
NZ IFRS 15 Revenue from Contracts with Customers establishes how much and when revenue is
recognised. It replaced NZ IAS 18 Revenue. Under NZ IFRS 15, revenue is recognised when a
customer obtains control of the goods and services.
The Group has adopted NZ IFRS 15 using the retrospective effort method with a date of initial
application of 1 April 2018. Practical expedients under the retrospective method have not been applied
by the Group as these are not applicable for the Group.
On adoption of NZ IFRS 15, the Group has recognised excise charged to customers in revenue, along
with the cost of excise in cost of sales. Previously it was recognised net of revenue. Excise in New
Zealand is a production tax paid by the Group and then forms part of the price charged to customers.
As a result, $4,301,000 has been recognised in revenue and cost of sales for the year ended 31 March
2019 and $3,306,000 has been recognised in revenue and cost of sales for the comparative year ended
31 March 2018.
The following table summarises the impact of adopting NZ IFRS 15 on the Group’s financial statements:

Moa Group Limited
Notes to the Financial Statements
31 March 2019


16
As at 31 March 2018AmountNZ
PreviouslyIFRS 15Restated
Statement of Comprehensive IncomeReportedAdjustmentAmount
Revenue10,454 3,306 13,760
Trade and other payables(7,454) (3,306) (10,760)
Gross Profit2,999 - 2,999

There is no impact on the statement of financial position or statement of cash flows previously reported.
The Group advises that except for excise there are no other changes to revenue, including no change
to the timing of revenue recognition which, for sales of goods to customers, is recognised at a point in
time.

(ii) Standards, amendments and interpretations to existing standards that are relevant to the Group, not
yet effective and have not been early adopted by the Group

NZ IFRS 16: Leases (effective for annual periods beginning on or after 1 January 2019)

NZ IFRS 16 Leases is mandatory for reporting periods beginning on or after 1 January 2019 and will
become effective for the Group on 1 April 2019.

It will result in almost all leases being recognised in the statement of financial position, as the
distinction between operating leases and finance leases has been removed. The Group has not
adopted the standard before its mandatory effective date. The Group has undertaken a high level
assessment but is yet to fully assess its impact on current and future operations.

Otherwise there are no other new accounting standards, or amendments to existing standards that are effective for
the year ending 31 March 2019 which have a material impact on the Group.

3 Financial risk management
The Group's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate
risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability
of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The
Group uses different methods to measure different types of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate and foreign exchange risks and aging analysis for credit risk.
(a) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect
the Group’s income or the value of its holdings of derivative financial instruments. The objective of market risk
management is to manage and control risk exposures within acceptable parameters while optimising the return on
risk.
(i) Interest rate risk
The Group’s fair value interest rate risk as at 31 March 2019 arises from its bank deposits.
(ii) Price risk
The Group has entered into one commodity contract or other price-related derivative arrangements
with regards to the purchase or raw materials with an employee; therefore, it is not exposed to any
material price risk.
(iii) Currency risk
The Group is exposed to currency risk on sales and purchases that are denominated in a currency
other than the functional currency of the Group’s entities, being NZ dollars (NZD). The currency risk
arises primarily with respect to sales to international customers in US dollars (USD) and Australian
dollars (AUD), and to the purchase of materials, services and plant in US dollars (USD).
The Group uses natural hedges where possible and monitors its estimated foreign currency exposure
in respect of forecast revenue received from international customers and in respect of forecast
material purchases. The Group will continue to review its currency risk strategy as the business
grows and the proportion of international sales and purchases changes.
The table below summarises the Group’s exposure at the reporting date to foreign currency risk on

Moa Group Limited
Notes to the Financial Statements
31 March 2019


17
the monetary assets and liabilities against its functional currency, expressed in NZ dollars.
USDAUDEUR
$'000$'000$'000
Trade and other receivables15 44 -
Trade and other payables(338) (7) (31)
Cash and cash equivalents- 224 -
Total as at 31 March 2018(323) 261 (31)
Trade and other receivables- 22 -
Trade and other payables(211) (7) (1)
Cash and cash equivalents52 39
Total as at 31 March 2019(159) 54 (1)

Sensitivity analysis – underlying exposures

A 10% weakening or strengthening of the NZ dollar against the US and Australian currencies as at 31
March 2019 would have an immaterial impact on reported equity and the net result for the year.
The Group’s exposure to other foreign exchange movements is not material.
(b) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. Credit risk arises from cash and cash equivalents and deposits with banks and
financial institutions, as well as from the Group’s receivables due from customers. Cash and deposit balances are
held with financial institutions rated at least an A+ Credit Rating by Standard and Poors.
The Group’s four largest customers represent approximately 77% of sales, with no one customer more than 33% of
sales. Credit risk is concentrated within New Zealand and in the fast-moving consumer goods market. The Group
has established credit policies under which each new customer is assessed for creditworthiness before payment
and delivery terms and conditions are agreed.
The Group has adopted the simplified approach to ECL (expected credit loss) in IFRS 9: Financial Instruments
which apply to trade receivables that are in the scope of IFRS 15. The impact is limited as trade receivables are
predominantly less than 90 days.
The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as
summarised in Notes 10 and 15.
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation. Also refer Note 3(d).
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the
maturity profiles of financial assets and liabilities.
The financial statements have been prepared on a going concern basis, the validity of which depends on the Group
generating sufficient cash flows in future periods and if necessary, its ability to raise new equity. If the Group was
unable to continue in operational existence for the foreseeable future, adjustments may have to be made to reflect
the fact that assets and liabilities may need to be realised at amounts other than those at which they are currently
recorded in the statement of financial position and the Group may have to provide for further liabilities that may
arise.
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on the remaining
period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows in respect of financial liabilities. Balances due within 12 months equal their carrying value
as the impact of discounting is not significant.

Moa Group Limited
Notes to the Financial Statements
31 March 2019


18
Maturities of financial liabilities20192018
Notes$'000$'000
Non-derivative financial liabilities
Trade and other payables - less than 3 months3,041 2,276
Trade and other payables - more than 3 months- -
Total153,041 2,276
Employee entitlements and GST do not meet the definition of a financial liability
and have been excluded from the table above


The Group has in place facilities with its bank to provide (i) working capital funding repayable on demand and
subject to banking covenants around asset cover and capital adequacy - this facility was accessed in peak
inventory build months ahead of summer and again in March 2019 as a result of business acquisition costs; (ii)
foreign exchange forward contracts, at year end there were $511,000 of forward contracts; and (iii) a standby letter
of credit to its payroll provider for $125,000.
(d) Capital adequacy and going concern

The Company maintains a capital base adequate to achieve the goals of the business. The Board continually
monitors the future funding requirements of the business.

The Board has reviewed the latest management forecasts, covering the period 12 months from the date of signing
these financial statements. These forecasts include the existing business, the purchase from 1 April 2019 of the
Savor Group business and the capital raised in March and April 2019 from the placement and rights issue. The
Board considers that while the Group is looking to invest in growth opportunities, the Group will be able to meet its
commitments as they fall due, and based on these forecasts the business is a going concern.

For the year ended 31 March 2019, the Group made a loss of $2,987,000 and generated a cash deficit of
$3,570,000.

On 1 April 2019, the Group entered into funding facilities which established certain financial covenants. The
Group’s ability to comply with financial covenants and generate sufficient cashflows from operations to satisfy its
funding and other obligations for a period of at least 12 months following the issuance of these financial statements
is important to determining the appropriateness of the going concern basis of accounting. The Group’s ability to
meet these covenants creates a material uncertainty which may cast doubt on the Group’s ability to continue as a
going concern.

The Board is confident that further capital can be raised to the extent required and certain investments and projects
can be deferred as well as cost saving initiatives implemented to manage the financial performance and cash flow
requirements of the Group.

The financial statements have been prepared on a going concern basis; the validity of which depends on the Group
generating sufficient cash flows in future periods and if necessary, its ability to raise new equity. If the Group was
unable to continue in operational existence for the foreseeable future, adjustments may have to be made to reflect
the fact that assets and liabilities may need to be realised at amounts other than those at which they are currently
recorded in the statement of financial position and the Group may have to provide for further liabilities as they arise.

4 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience, expectations of future
events and other factors that are believed to be reasonable under the circumstances. The resulting accounting
estimates will, by definition, seldom equal the related actual results.

Judgement has been applied in determining the forecast cash flows of the Group, which are the basis for
concluding that the Group is a going concern. Conclusions in respect of capital adequacy and going concern are
described above in note 3(d).

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year and the judgements applied are as follows:

• Judgement is exercised in determining the timing and extent of recognition of the benefit of tax losses. The
benefit of tax losses can be recognised as an asset if its recovery is ‘probable’ (more likely than not). In the
absence of any track record of profitability, convincing evidence is needed of how the losses will be
recovered in the future, before any deferred tax asset is recognised. The Group has not recognised any

Moa Group Limited
Notes to the Financial Statements
31 March 2019


19
benefit as at 31 March 2019 in respect of the tax losses generated.

• The carrying values of the Group's assets principally rely on the expectation of continued growth in sales,
which supports the current assessment that there are no impairments. If those growth expectations
change, or the expected profitability of the Group otherwise changes, there may be impairments of the
Group and/or Group's assets in future periods.


5 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). This measurement basis excludes the
effects of non-recurring expenditure from operating segments. 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 sales 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:


NEW ZEALANDEXPORTTOTAL
$'000$'000$'000
Revenue by Segment12,497 1,262 13,760
EBITDA(2,008) (70) (2,078)
Depreciation and amortisation(473) - (473)
Expenditure on fixed and intangible assets164 - 164
NEW ZEALANDEXPORTTOTAL
$'000$'000$'000
Revenue by Segment15,161 740 15,902
EBITDA(2,628) 74 (2,554)
Depreciation and amortisation(433) - (433)
Expenditure on fixed and intangible assets325 - 325
YEAR ENDED 31 MARCH 2018
YEAR ENDED 31 MARCH 2019


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

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.

6 Revenue
Restated
20192018
$'000$'000
Domestic Sales
Domestic10,854 9,284
Domestic Excise4,308 3,214
Export Sales
Export747 1,170
Export Excise(7) 92
Total15,902 13,760


The impact of initially applying NZ IFRS 15 on the Group’s financial statements is disclosed in note 2(w).

Moa Group Limited
Notes to the Financial Statements
31 March 2019


20

Due to the transition method chosen in applying NZ IFRS 15, comparative information has been restated. The
transfer of control to customers occurs at a point in time and the Group recognises revenue to reflect this.


7 Expenses
NOTES20192018
$'000$'000
Loss before income tax includes the following specific expenses:
Depreciation and amortisation
Depreciation12368 409
Amortisation1366 64
433 473
Rental expense relating to operating leases
Lease Payments124 245
124 257
Employee benefit expense
Salaries and Wages1,838 2,265
KiwiSaver28 48
Share based payments(9) 58
1,857 2,371
Fees paid to auditor
Audit Fees78 60
Non Audit Fees125 45
203 105


The non audit fees relate to advisory services provided to the Group

8 Other gains / (losses)
20192018
$'000$'000
Foreign exchange gains/(losses)10 (18)
Gains/(losses) on disposal of assets- -
Impairment of PPE(134) -
Other income16 -
Total(108) (18)

Moa Group Limited
Notes to the Financial Statements
31 March 2019


21
9 Income tax
The prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax
expense in the consolidated statement of comprehensive income as follows:
20192018
$'000$'000
Loss from continuing operations before income tax expense(2,987) (2,548)
Tax at 28%(836) (713)
TAX EFFECT OF NON DEDUCTIBLE ITEMS
- Non deductible expenses(1) 13
Temporary differences not recognised(18) 37
Tax benefit not recognised855 663
Income Tax Expense- -


10 Trade and other receivables
NOTES20192018
$'000$'000
Trade receivables2,693 1,800
Slotting fee asset682
Provision for impairment(45) -
Amount due from related parties192 11
Prepayments150 195
Other receivables41 169
Trade and other receivables3,523 2,175
Presented as:
Current2,982 2,175
Non current542 -
Trade and other receivables
3,523 2,175


(a) Impaired receivables

As at 31 March 2019 current trade receivables of the Group with a value of $44,828 (2018: nil) were impaired and
provided for.

(b) Past due but not impaired receivables

As at 31 March 2019, trade receivables of $307,000 (2018: $285,000) were past due but not impaired. These relate
to a number of customers for whom there is no recent history of default. The ageing analysis of these trade
receivables is as follows:
20192018
$'000$'000
1 - 30 days overdue175 134
31 - 60 days overdue40 100
61+ days overdue92 51
Total307 285

Moa Group Limited
Notes to the Financial Statements
31 March 2019


22
(c) Provision for impairment of receivables

Movements in the provision for impairment of receivables are as follows:
20192018
$'000$'000
Opening balance- 5
Provision for impairment recognised during the year(45) -
Reversal of amounts previously provided- (5)
Receivables written off during the year as uncollectible- -
Total(45) -


The creation and release of the provision for impaired receivables has been included in ‘Administration expenses’ in
the consolidated statement of comprehensive income. Amounts charged to the provision account are generally
written off when there is no expectation of recovery.

The other balances within total trade and other receivables do not contain impaired assets and are not past due.
Based on the credit history of these other classes, it is expected that these amounts will be received when due.
Refer to note 3(a)(i) for an analysis of Group's exposure to foreign currency risk in relation to trade and other
receivables.

The Group does not hold any collateral as security. Refer to Note 3 for more information on the risk management
policy of the Group.


11 Inventories
20192018
$'000$'000
Raw materials1,227 688
Work in progress205 228
Finished goods1,349 1,021
Total2,838 1,937

Moa Group Limited
Notes to the Financial Statements
31 March 2019


23
12 Plant and equipment
Furniture LeaseholdMarketing
Plant andand OfficePropertyand TradeMotor
EquipmentEquipmentImprovementsEquipmentVehiclesTotal
$'000$'000$'000$'000$'000$'000
2018
Opening net book amount2,069 24 293 147 47 2,579
Additions98 17 1 44 - 161
Disposals- - - - - -
Recategorisation(146) 54 (66) 165 - 7
Depreciation(280) (29) (9) (82) (9) (409)
Closing net book amount1,741 66 219 274 38 2,338
Cost2,586 239 251 824 47 3,947
Accumulated depreciation(845) (173) (32) (550) (9) (1,610)
Net book amount1,741 66 219 274 38 2,338
2019
Opening net book amount1,741 66 219 274 38 2,338
Additions72 13 64 175 324
Disposals- - - - - -
Adjustments/Impairments(134) - - - - (134)
Depreciation(223) (18) (32) (86) (9) (368)
Closing net book amount1,456 61 251 364 28 2,159
Cost2,658 251 315 1,000 47 4,271
Accumulated depreciation(1,203) (191) (64) (635) (19) (2,112)
Net book amount1,456 61 251 364 28 2,159


The Group has a long term contract brewing agreement with McCashin’s Brewery in Nelson where the Group has
invested in plant and equipment at McCashin’s Brewery and where at the end of the contract brewing agreement
McCashin’s may purchase the plant and equipment.

13 Intangible Assets
ResourcePatents and
ConsentTrademarksSoftwareTotal
$'000$'000$'000$'000
2018
Opening net book amount513 1 15 529
Additions- 3 - 3
Disposals- - - -
Recategorisation(2) (1) (4) (7)
Amortisation(63) (0) (1) (64)
Closing net book amount448 3 10 461
Cost634 3 11 648
Accumulated amortisation(186) - (1) (187)
Net book amount448 3 10 461
2019
Opening net book amount448 3 10 461
Additions- 5 - 5
Disposals- - - -
Adjustments/Impairments(4) 11 (7) -
Amortisation(59) (3) (1) (63)
Closing net book amount385 16 2 403
Cost630 19 4 653
Accumulated amortisation(245) (3) (2) (250)
Net book amount385 16 2 403

Moa Group Limited
Notes to the Financial Statements
31 March 2019


24
14 Deferred tax
The Group has unrecognised deferred tax assets arising from tax losses as follows:

20192018
$'000$'000
Tax losses after 1 October 20126,391 5,585
Timing differences32 89
Total deferred tax unrecognised6,423 5,674


The Group has no imputation credits available at 31 March 2019 (2018:nil)

15 Trade and other payables
NOTES20192018
$'000$'000
Trade payables2,409 1,986
Amount due to related parties1937 54
Accrued expenses595 236
Contract Liabilities528 -
GST payable / (receivable)(35) 10
Employee entitlements83 213
Total Trade and other payables3,617 2,499


16 Contributed equity
Contributed
Shares$000sShares$000sShares
At 1 April 201753,630,087 26,041 - - 26,041
Voting shares converted(13,004) (7) 13,004 7 -
Shares issued to employees in lieu of salary43,353 25 25
Shares issued to directors in lieu of fees81,559 40 40
Placement shares627,986 329 329
Issue costs(11) (11)
Staff options exercised285,150 104 104
At 31 March 201854,655,131 26,522 13,004 7 26,528
Voting shares converted13,004 7 (13,004) (7) -
Shares issued to employees in lieu of salary22,513 10 10
Placement shares11,631,569 4,918 4,918
Share Placement Plan shares1,651,011 791 791
Issue costs(274) (274)
Staff options exercised253,658 133 133
At 31 March 201968,226,886 32,105 - - 32,105
OrdinaryUnlisted Non Voting

All issued shares are fully paid. In addition, there are 53,475 unpaid treasury shares held.


(1) Issue of Ordinary Shares

In June 2018 the Group issued 3,736,832 ordinary shares to investors under a placement and in July 2018 issued
1,651,011 ordinary shares to existing investors under a Share Placement Plan.
In March 2019 the Group issued 7,894,737 ordinary shares to investors under a placement.
During the year ordinary shares were issued to employees under the Employee Share Option Plan and the Salary
Reinvestment Scheme.

Moa Group Limited
Notes to the Financial Statements
31 March 2019


25
(2) Conversion of unlisted non-voting shares

After the placements above, Pioneer Capital reduced its shareholding below 20% and under the Takeovers Code
the unlisted non-voting shares they held were converted to ordinary shares with full voting rights.

(3) Salary Reinvestment Scheme

In August 2015 the Board approved the Salary Reinvestment Scheme which enabled employees and executive
directors to receive ordinary shares in the Company instead of a proportion of their cash remuneration. Shares
issued under the scheme were valued at a 20-day volume weighted average price from the start of the period in
which remuneration is reinvested.

Shares to a value of $10,000 were issued under the scheme in the year (2018: $40,000).
17 Share entitlement reserve

The Company Employee Share Option Plan

In July 2015 the Board approved the Company Employee Share Option Plan. Options allow eligible staff to
subscribe for ordinary shares in the Company at an exercise price. Options are vested in equal tranches on the first
to third anniversaries of the date of issuance while the eligible employees remain in full time employment with the
Group. Once vested the options can be exercised at any time up to the second April following vesting. Employees
can pay the exercise price in shares using the 20-day Volume Weighted Average Price of the Company shares up
to the date of issuance. The Employee Share Option Plan allows employees to exercise all their vested options into
ordinary shares for cash or a lower number of ordinary shares for no cash.

The employee scheme was extended to certain customers of the Group on the achievement of certain performance
goals and is detailed below.

The following details the 1,157,647 options issued to employees and customers that have not been exercised as at
31 March 2019

319,999 issued to employees in September 2015 at 28.2c
26,667 issued to employees in October 2016 at 44.3c
60,000 issued to employees in September 2017 at 44.3c
300,000 issued to employees in April 2018 at 42,9c
100,000 issued to employees in June 2018 at 42.9c
350,981 issued to customers in November 2018 at 42.3c

The options have been valued using the Black-Scholes pricing model at $133,862

18 Commitments
(a) Capital commitments

There were no material capital commitments as at 31 March 2019.

(b) Operating leases

The Group leases premises, plant and equipment, kegs and vehicles. Operating leases held over properties give
the Group the right to renew the lease subject to a re-determination of the lease rental by the lessor.


20192018
$'000$'000
Commitments for minimum lease payments in relation to
non-cancellable operating leases are payable as follows:
Within one year138 148
Later than one year but not later than five years90 2
Total lease commitments228 150


There are no sub-leases from the above.

(c) Purchase commitments

Moa Group Limited
Notes to the Financial Statements
31 March 2019


26

The Group has entered into contracts to buy materials in 2019 to the value of $371,000 (2018 $366,000).

19 Related party transactions

(a) Directors

The Directors serving during the year were:

Date appointed
Geoff Ross Chief Executive Officer 27 August 2012
Executive Chairman 22 December 2017
Craig Styris Non-Executive Director 27 August 2012
John Ashby Independent Director 28 January 2015
Retired 3 August 2018
David Poole Non-Executive Director 17 September 2015
Sheena Henderson Independent Director 1 October 2017
Rich Frank Independent Director 1 August 2018


(b) Key management personnel compensation

Executive Chairman Geoff Ross provides consulting and services to the Group through Southern Skies Limited.
Craig Styris provides director services through Pioneer Capital Management Ltd. Director fees for the year were
payable to John Ashby, David Poole, Sheena Henderson and Rich Frank. Other key management comprise senior
executives of the group
20192018
$'000$'000
- Directors fees186 230
- Management services25 230
- Senior employee short term benefits400 480
- Share based payments10 17
Total621 956


(c) Other transactions

(i) With its major shareholders

Moa Brewing Company Limited leases its Jackson Road, Marlborough premises from Allan Scott Wine
Estates Ltd (‘ASWEL’) under a Deed of Lease agreement between ASWEL and the Company dated 17
September 2010. Lease costs were $36,000 (2018: $36,000).

(ii) With its employees

A senior executive was provided with an unsecured loan of $59,000 at market interest rates in order that
they could participate in the 2014 rights issue to the full extent of shares held. The loan has now been
repaid. The balance owed at 31 March 2019 was nil (2018:$7,980).

A senior executive, working in the Brewery in Blenheim owns a hops supply company, for which Moa
Brewing Company Limited is contracted to supply $295,000 of raw materials from this entity from 1 April
2019 to 31 March 2020.

Moa Group Limited
Notes to the Financial Statements
31 March 2019


27
20192018
$'000$'000
RECEIVABLES FROM RELATED PARTIES
- Allan Scott Wines0 4
- Pioneer Capital2
- Senior executives- 7
Total2 11
PAYABLES TO RELATED PARTIES
- Senior Executives19 1
- Allan Scott Wines- 3
- Non Executive Directors12 12
- The Business Bakery- 23
- 1st Seed Limited- 4
- Independent Directors7 12
Total37 54



(d) Subsidiaries of the Company
DateOwnership %Ownership %
Incorporated20192018
Moa Brewing Company Ltd02-Jul-04100%100%
Savor Group Limited19-Dec-18100%-



(e) Interests in joint operations

The Group is party to sales venture agreement with Constellation Brands New Zealand Limited (referred to as
‘MoBev’). The parties operate MoBev to provide sales and distribution services to the brand owners. Each
party accounts for its own sales and recognises its share of costs.

20 Reconciliation of loss after income tax to net cash flows from operating activities
20192018
$'000$'000
Loss for the period(2,987) (2,548)
Depreciation and amortisation433 472
Impairment of PPE134 -
Foreign exchange (gains)/losses10 18
Shares in lieu of fees and salaries- 65
Share based payments- 36
Movements in working capital:
(Increase) / decrease in inventories(900) 58
(Increase) / decrease in trade and other receivables(1,367) (90)
Increase in trade and other payables1,108 231
Net cash outflow from operating activities(3,570) (1,758)

Moa Group Limited
Notes to the Financial Statements
31 March 2019


28
21 Earnings per share
Basic earnings per share

Basic losses per share are calculated by dividing the loss attributable to equity holders of the Company by the
weighted average number of ordinary shares on issue during the year.

20192018
Loss after tax ($000)(2,987) (2,548)
Weighted average number of ordinary shares on issue58,922,761 53,961,049
Basic losses per share (cents)(5.1) (4.7)
Diluted losses per share (cents)(5.1) (4.7)
Weighted average number of ordinary shares
Issued ordinary shares at the beginning of the year54,655,131 53,630,087
Issued ordinary shares at the end of the year68,226,886 54,655,131
Weighted average number of ordinary shares 58,922,761 53,961,049
Weighted average number of ordinary shares (diluted)58,922,761 53,961,049


Diluted earnings per share

Diluted losses per share are calculated by adjusting the weighted average number of ordinary shares outstanding
and to assume conversion of all dilutive potential ordinary shares. As at 31 March 2019 the effect of un-exercised
options vested to staff under the Company Employee Staff Option Scheme (see Note 17) is anti-dilutive. Shares
issued in connection with the acquisition of Savor Group (see Note 22) have not been included in the calculation of
diluted earnings per share.


22 Events occurring after balance date

On 20 December 2018 the Company signed Sale and Purchase Agreements to purchase the assets of Savor
Group, covering a number of bars and restaurants in Auckland. As the acquisition was substantial, shareholders
voted to proceed with the acquisition on 12 March 2019 and on 26 March 2019 the acquisition went unconditional.

The acquisition settled on 1 April 2019 and the Company paid the vendors $13m made up of 60% in cash and 40%
in the Company shares. To finance the acquisition the Company raised $5.5m from the BNZ and $3.0m in a share
placement.

Further payments may be due to the vendors as follows:
a) $5.4m upon achieving within 24 months of settlement certain agreed commercial milestones that will
deliver (i) additional incremental EBITDA of $1.5m (ii) substantial growth of the brand, image and
reputation of the business (iii) other financial, business or strategic outcomes that the Company’s board
agrees are desirable; or(iv) any combination of the above. The $5.4m will be paid 60% in cash and 40% in
Company shares.
b) An earnout adjustment, both upwards and downwards, dependent on the EBITDA performance of the
Savor Group business over FY20 and FY21.

The Company raised $1.07m through a rights issue in April 2019.

---

Moa Group Limited
Results for announcement to the market
Reporting Period12 months to March 2019
Previous Reporting Period12 months to March 2018
Amount (000s)Percentage change
Revenue from ordinary
activities
15,902 NZD+15.6%
Profit (loss) from ordinary
activities after tax attributable to
security holders
-2,419 NZD+2.6%
Net profit (loss) attributable to
security holders
-2,987 NZD-17.3%
No dividends declared
31 Mar 201831 Mar 2019
Net tangible assets per security
0.106 NZD0.119 NZD
Comments
Please refer to audited financial statements for FY19
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