THL profit hit by US slump

NZ-LISTED Tourism Holdings Limited this morning declared a 26% decline in underlying annual profit, with a record performance of its NZ motorhome rentals and sales business overshadowed by a poor performance in the USA.

Total revenue was flat at NZ$423m for the year, and the company’s net profit after tax plummeted 52% to $29.8 million.

However last year’s $63m result included a one-off $23.1 million gain relating to the formation of TH2, the company’s joint venture with RV maker Thor Industries, which also owns local businesses Roadtrippers, GoSeeAustralia and Outdoria (TD 09 Apr).

TH2 has also been rebranded as Togo Group, the company said.

Chairman Rob Campbell said “the Board is not satisfied with the result for FY19...[however] we remain very confident in the future of the business and our competitive position”.

THL businesses feature a range of motorhome brands such as Maui, Britz, El Monte RV and Road Bear, alongside experiences including Waitomo Glowworm Caves and the Kiwi Experience NZ hop on hop off bus network.

The company’s CEO, Grant Webster cited record results in Australia, along with strong growth in the NZ rentals and sales business, with the overall result impacted by a 34% decline in sales of vehicles in the USA.

The company’s sustainability focus has also seen it today announce the commencement of a journey to become a “Future-Fit Business” - CLICK HERE for more.