Tourism Holdings, the largest camper van rental business in Australia and New Zealand, has more than its doubled first-half profit after cutting costs and fattening margins.
The company improved earnings across its businesses by selling off excess fleet capacity and focussing on margins.
Tourism Holdings says is looking to leverage earnings from New Zealand’s tourism market to fund growth in the international motorhome market. It expects profit increases to be led by growth in its local and Australian rentals businesses, as well as cost cutting.
Kiwi Experience, and Discover Waitomo Group are also part of the company’s tourism arm and it has a joint venture with RV Manufacturing group. It also operates camper van rentals in the U.S.A.
BusinessDesk reports a company statements says that profit rose to $5.6 million in the six months ended Dec. 31, beating its December guidance of $5 million and up from $2.5 million a year earlier
Sales slipped 2.3$ to $109.7 million as it reduced its fleet numbers, while the cost of sales shrank 12% to $28.8 million.
