Company blames drink-driving laws

Veritas Investments, owner of Mad Butcher, has warned of its full-year profit will fall $1 million short of expectation due largely to a disappointing performance from its gourmet food market business, Nosh.

The company downgraded the forecast it gave in February, saying it now expected an underlying profit of $5.3 million, rather than $4.3m, for the year to June 30.

Key factors were the speed at which the Nosh business improved, the performance of its Better Bar Company hos- pitality sites in Hamilton and the ongoing effect of new drink-driving legislation.

Veritas said it would update the market again in late June.

Chairman Mark Darrow said the turnaround of Nosh, which was struggling when Veritas bought it in September, was ‘‘progressing well, although [it] is behind schedule’’. It was expected to record a loss this year and breakeven in the second quarter of next year. A Nosh store in Pakuranga was due to be opened later this year.

Another business, Kiwi Pacific Foods, was trading ahead of its target and its latest acquisition, the Better Bar Company group, was expected to improve after being hit by the new drink-driving laws. ‘‘As with a similar experience in Australia, we do expect this to improve as the sector responds with a more comprehensive lower-alcohol and improved food offering,’’ Darrow said.

The Mad Butcher division was trading to expectations and the company would look to open more mini-stores around the country after a successful trial in Mosgiel.

Veritas shares lost 4c to 76c in late Friday trading, having fallen from $1.33 in February.