24 Jun 2015

Veritas forecasting a better year

2:02 pm on 24 June 2015

Food and drink investor Veritas Investments is forecasting a better year after struggling with underperforming units.

The company, which owns Nosh Food Market, Better Bar Company, Kiwi Pacific Foods and the Mad Butcher chain, expects to make an underlying profit of between $5.3 million and $5.5 million in the June 2016 financial year.

Last month, Veritas revised its June 2015 annual profit downwards to $4.3 million, due to problems with its recently acquired Nosh Food and Better Bar Company arms.

Investors appeared unimpressed, with the company's share price hitting a year low of 65 cents each earlier this month.

But Veritas was forecasting better times ahead.

It was forecasting revenue of between $86 million to $92 million in the June 2016 financial year, with the Mad Butcher, Nosh and Better Bar roughly accounting a third each.

The company was aiming to open more mini Mad Butcher stores, while it said a focus on its food options at its Better Bar sites was paying off, as are changes at Nosh to lift sales and margins.

Veritas' chairman Mark Darrow steps down at the end of the month, to be replaced by Tim Cook.

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