Tourism Holdings Limited (THL) is reducing its FY24 net profit after tax guidance to be between $50m and $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 $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 major factor globally, with sales volumes and margins now 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.
The company has retained its goal for $100m NPAT in FY26 based on “a positive rental growth outlook and a recovery in the RV sales market globally”.
However, its expectations for FY25 are now below the FY23 pro forma NPAT of $77.1m, and below the current analyst consensus of around $87m.
The company says it intends to slow fleet purchases across the next 12 months and expects its rental fleet to be below 9000 units at the end of FY25 compared to a previous guidance of below 9500.
