Sales at its Mad Butcher stores would fall to between $7m to $8m, from 2016's $9.8m.
Veritas Investments' shares jumped 16 percent after the food and beverage company affirmed its annual earnings guidance and said its three divisions are all showing signs of improvement.
Stripping out one-off and significant costs, profit from continuing operations is expected to be between $3 million and $3.5 million in the
12 months ending June 30, the Auckland-based company said in a statement. Veritas posted a first-half loss of $4.8 million when it took impairment charges and other write-downs totalling $5.3 million.
The shares climbed 5 cents to 36 cents, the highest level since February 17.
Veritas reviewed and restructured its operations after cutting its earnings outlook and dropping a first-half dividend payment, and today said all three of its businesses — Mad Butcher, Nosh and Better Bar Co — showed signs of improvement in the three months ended March 31.
For its Mad Butcher business, the company said the low-cost meat franchise still faced competitive trading conditions but lifted underlying profitability due to cost-cutting measures and marketing initiatives. Two unprofitable stores were closed, and a third is still on review, Veritas said.
The Nosh Food Market unit benefited from "operating efficiencies" within the segment, and since March 31 Veritas has embarked on rolling out a franchise model for the high-end supermarket chain.
