Mad Butcher earnings down as Veritas posts loss

The losses stem from the end of its Kiwi Pacific Foods venture, which supplied beef patties to the local Burger King franchise operator, Anatares Restaurant Group, a joint partner in the venture.

The deal broke down last year and was going through the courts before the two parties agreed to sell the assets.

A loss of $2.9m was recognised against this, while write-offs relating to the Mad Butcher cost it $2.35m.

Three Mad Butcher stores were closed during the second half of the year because they were "consistently unprofitable". In a statement, the company said the market was currently very competitive "with supply shortages creating challenges around product choice and pricing".

Veritas said the majority of stores were trading profitably but earnings before interest, taxation, depreciation and amortisation (ebitda) fell 28 per cent to $4.57m.