Beleaguered ASX-listed brewer Broo has reported revenues down by more than a third in its half year results and post-tax losses continue despite significant share sales.
The brewer disclosed to the Australian Stock Exchange in its Friday afternoon announcement that for the six months to 31 December 2019 revenues from ordinary activities dropped to $1 million. In the similar period the year before, the brewer reported revenues if $1.7 million.
The decline in revenue came despite founder Kent Grogan heralding a two million litre distribution agreement, the benefits of which should have begun to flow flow this half.
The company reported a further $1.3 million loss according to the sparse half yearly report.
Activities undertaken included the production of packaged and draught beer in both Australia and China, it said, and the management of hospitality venues like its Sorrento Brewhouse in Victoria.
It said there were “no significant changes in the state of affairs of the consolidated entity” during the period.
In its revenue breakdown, the company said the hospitality businesses made $629,497, and Australian brewing operations brought in $429,388.
Despite its results the directors said there were “reasonable grounds to believe the company will be able to pay its debts”. No dividends were paid.
Broo has for a number of months seen its performance deteriorate, with confusion over claims it would be selling its Mildura Brewery.
Post-period, it raised $500,000 through the divestment of 50 million shares at 1 cent per share. The brewer also brought in a new CFO, Adrian Siah, who acquired $980,000 worth of Kent Grogan’s personal shares through an associated company.