Mad Butcher: parent company drops $4.59m
The parent company behind the Mad Butcher chain has reported a loss of $4.59m in the financial year 2015/16.
The year before, the company had made a $3.3m profit.
Veritas also owns the Nosh Food Market and Better Bar Company, which had mixed results.
But the cause of the significant loss to June 2016 is the closure of Veritas’ Kiwi Pacific Foods Venture with a loss of $2.9m.
Kiwi Pacific Foods supplied beef to Burger King franchise operator Anatares Restaurant Group, a joint partner in the venture, reports nzherald.co.nz.
Two of the Mad Butcher outlets are company owned, the other 31 are franchised.
A statement from Veritas emphasises the challenges for the Mad Butcher business:
“The market has been very competitive with supply shortages creating challenges around product choice and pricing. The Board’s focus is on ensuring profitability within each store and we are working closely with franchisees to support and maximise their performance.
“During the second half of FY16, we closed three Veritas owned stores which, in spite of extensive support from the franchisor, were consistently unprofitable.
“Despite the challenging environment, the majority of Mad Butcher stores are trading profitably and the brand still continues to be a major contributor to Veritas’ profitability generating EBITDA2 of $4,574,720 in the year, (FY15: $6,358,682).
“The Mad Butcher business will continue to seek opportunities to grow its network."