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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news