13 Aug 2013

Moa shares plunge 25% after sales shortfall warning

7:26 pm on 13 August 2013

Boutique beer company Moa Group is warning of a significant shortfall of its sales targets this year, prompting shares to plunge 25 percent.

Four months into the financial year, Moa says there will be a volume shortfall of 30% of the total company target of 195,000 cases.

In a statement to the NZX, it said this was largely due to the sales shortfall in the New Zealand market. Shares in the company subsequently slumped by 25% on Tuesday morning.

The company, which listed last November, said it was actively negotiating a transition from its current distribution arrangement to a new distribution model in an effort to regain control and momentum in New Zealand.

Chief executive Geoff Ross said the largely export-driven company was working quickly to fix the problem.

"The current model is not working and we're going to change it rather quickly to get it working," Mr Ross said.

Export markets were performing in line with volume expectations but in Australia, the smallest of Moa's key markets, sales volumes were tracking behind forecasts.

As a result, the company recently acquired the Australian sales agency rights and intends to manage the Australian business directly.

In the 12 months to the end of March, Moa more than doubled its sales volume to 102,600 cases. Revenue grew from $2.41 million to $4.38 million.