SVR - Savor Ltd (Formerly MOA)

[Nice Option]

Can anyone explain why MOA would pay $3.5mio for an Italian Restaurant with around $800k for EBIT?? seems over the top

[petty]

I’d Dave to have a look at npat to be sure but 5x multiple probably not bad given they need this sort of a business to drive beers sales, plus with america’s Cup coming up might have required a slight premium. Not a Hundy though.

[silverblizzard888]

Can anyone explain why MOA would pay $3.5mio for an Italian Restaurant with around $800k for EBIT?? seems over the top

I may have missed it but the disclosure doesn't say anything about the EBIT, would you be able to state your source?

[silu]

Its not that bars and restaurants don't have good margins, its usually inefficient management that put those margins under pressure or really bad food and service. Why else would so many people be scrambling to open a bar or restaurant if there were none? Restaurant Brands would be gone by now and Mc..something will not exist, little lone sub.... nothing.

The factors that make a profitable restaurant is being able to manage cost, while providing good food and good service. Theres a lot of money to be made if you can get the crowd in. The ones usually going under are the ones that think they can cook so they open a restaurant to realise the majority of the work involved is managing and admin and they don't handle it well. The other bunch that don't do well is the ones with money and a idealistic dream that running a restaurant is romantic and that they live to serve beautiful food at a not so beautiful price because all they can do is hire people to do all the work. That is why there is a high failure rate because everyone gets in thinking its easy, then reality hits and they either discover they don't have the management skills or the ability to make good food.

Now I'm not going to say Savor is going to be successful since I haven't been to their restaurants, but from what they have done I'd say its not an easy feat to open so many restaurants and bars, so they definitely have the management skills, having good management skills usually ensures service and cost are kept under control. They also have to be able to serve good food and good drinks in this case. The drinks are a given since its tap and bottled drinks, so the last is the food, which I imagine is good if they have managed to build a company with $25 million in revenue. They are on a constant expanding phase too, so theres a fair bit of growth happening, though won't scale that well after a while, but certainly could build out a 2-3x business from their current valuation in the next few years if things go well.

As someone who once owned a restaurant. It's simple. Many people are scrambling to open restaurants because they think it is easy. Myself included. Restaurants work only if you can upscale. The margins are slim so you have to try to increase revenue at all costs either by offering added value items (set menus, cocktails etc) or acquisition. It's a masochist's game going into this business. I worked myself to death for not much yet I still think fondly back to all the memories I made.

[Joshuatree]

Even though this company is still a beer company, its probably slowly changing to a restaurant company.

For those who remember Trilogy, it started off as a candle business called Ecoya that could only break-even, then it acquired Trilogy skincare, which is where the real margins came in and made it a success.

Same story here. This is a beer business called Moa that at best will break-even, but after the acquisition of Savor where the real margins are, it will be made into a success.

Same person running it, same strategy, you know the rest.

I don't know if ive ever looked at this thread before. A friend who used to post on S/T brought my attention to MOA. And having listened to their thoughts and done some research, ive bought some. Thanks to your posts too silver blizzard, you articulate accurately and clearly and make a lot of sense.This trend/morphing of MOA has a very good chance of being successful and with projected rev of $40 mill plus and ebitda of $3.6 mill and a price around 32c looks great value indeed if they meet that guidance. Check the location of the bars etc fantastic.

ASM 2019 NZX Presentation Slides

[Joshuatree]

MOA Vogels Mixed Grain toasted Ale

https://youtu.be/d5YXLSg9Mds

[fungus pudding]

MOA Vogels Mixed Grain toasted Ale

https://youtu.be/d5YXLSg9Mds

If that's any indication of the product, it'll soon be extinct.

[Joshuatree]

Could mix a good brew out of you too Fungus

[Cadalac123]

I really like the way this company is implementing this turnaround strategy. It seems the premium portion of MOA was doing well as a standalone, and now with Savor there is a hospitality portfolio under MOA.

My reasoning for thinking MOA will do extremely well in 2019 are three-fold. Firstly, its at all-time bottom. No i'm not one to play as an advocate for trading a shareprice rather than a business, but that introduces a notable margin of safety. Secondly, the hospitality portfolio adopted is quite the artifical monopoly, with the restaurants all being in a extremely popular summer time destination (and one extremely favourable for America's cup). Lastly, the recent report was excellent.

I feel like I'm alone in this sentiment as no one else has really committed to this company.

[Joshuatree]

Read back a couple of threads , you're not alone.