Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Veritas affirms annual profit forecast

Veritas affirms annual profit as Kiwi Pacific acquisition makes up for slow Mad Butcher sales

By Paul McBeth

May 21 (BusinessDesk) - Veritas Investments, which owns the Mad Butcher franchise chain, has affirmed its forecast annual earnings as last year’s acquisition of Kiwi Pacific Foods made up for slower than expected sales at the butchery business.

The Auckland-based company sees net profit of $4.2 million in the 12 months ending June 30, unchanged from its last update in February, Veritas said in a statement. Third-quarter sales at the Mad Butcher business were weighed down by product shortages created by last year’s drought, and aren’t expected to recover in the fourth quarter. Still, the company’s half-stake in Kiwi Pacific Foods, which makes hamburger patties for Burger King, is expected to make up for the shortfall.

“Any shortfall against NPAT for FY2014 in the Mad Butcher business is expected to be offset by a positive NPAT contribution from Veritas’ 50 percent interest in Kiwi Pacific Foods,” the company said. “The board also expects to see an improvement against forecast in the group’s FY2014 tax position.”

The Auckland-based company bought the Mad Butcher in May 2013 in what was effectively a reverse listing, having sold its assets and returned capital to shareholders.

The NZX-listed investment company, which focuses on the food and beverages sector, bought half of Kiwi Pacific Foods in December for $2.8 million in cash and $400,000 in shares at $1.38 apiece, with potential earn-outs if certain export targets are met. The remainder of the business is owned by Antares Restaurant Group, which holds the New Zealand Burger King franchise.

Veritas affirmed its expectation the final dividend will be consistent with making a full-year return of 70 percent of net profit.

The shares were unchanged at $1.15, and have dropped 18 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news