Tourism Holdings Limited (THL) is reducing its FY24 net profit after tax guidance to be between NZ$50m and NZ$53m, citing a weakening economy and declining vehicle sales globally.
The profit downgrade compares to an earlier NPAT guidance set in February to be around NZ$75m.
“The weakening economy has impacted most regions and business divisions negatively,” the NZX and ASX-listed global tourism operator says.
“Vehicle sales have been a significant factor globally, with sales volumes and margins declining more quickly than expected in most markets.
“Over 50% of the overall group EBIT decline is attributable to the Australian retail dealership division and, in particular, a shortfall in the sales volumes of high-margin ex-fleet vehicles,” it says.
In spite of this, the company is committed to its long-term vision. It has retained its goal for NZ$100m NPAT in FY26, based on a positive rental growth outlook and a projected recovery in the RV sales market globally.
However, its expectations for FY25 are below the FY23 pro forma NPAT of NZ$77.1m and the current analyst consensus of around NZ$87m.
The company plans to slow fleet purchases across the next 12 months, reflecting its approach to the current market conditions.
It expects its rental fleet to be below 9000 units at the end of FY25, a slight adjustment from the previous guidance of below 9500.
