Merging brands and reducing fleet numbers to save costs appears to be the ongoing strategy for campervan giant Tourism Holdings Limited, which announced its results for the year to the end of July this week.
Earnings before interest, tax and financing costs fell 11% to $14.6 million for the year, compared with the company’s forecast of $NZ14m-$NZ16m. sales were up 12% to $224.6 million.
In the past two years, Tourism Holdings made major acquisitions, buying rivals United Campervans and KEA Campers, on the expectation it could reduce overall fleet numbers and improve margins.
At home, THL reported a profit of $5.5m as the company cut four fleet categories from its campervan operation, merged its two budget brands, outsourced its car rentals business and developed an RV Super Centre in Albany.
“Longer term, the reduction in industry capacity in the market should underpin earnings growth in the coming years to achieve acceptable returns,” the company said in its results announcement.
Australia did not fare as well – the strong Australian dollar a disincentive to tourists – with earnings falling nearly 70% year-on-year to $NZ1.3 million.
In THL’s biggest market, the USA, earnings were up 14% to $NZ6.5m.
