Tourism Holdings has reported a steep decline in revenue and profit but maintained a positive result. Photo / 123rf
Tourism Holdings has reported a steep decline in revenue and profit but maintained a positive result. Photo / 123rf
Campervan sales and rental company Tourism Holdings has reported a steep decline in profit.
Chairwoman Cathy Quinn described the past year as “the most difficult period for the RV sales industry in decades”, but the New Zealand division is outperforming as geopolitical pressures affect other markets.
In its interim six-month result to December 31, 2024, the firm reported a statutory net profit after tax (npat) of $25.3 million, down a significant 36% or $13.2m on the prior corresponding period.
However, total sales grew, with revenue increasing to $458.3m in 1H25, up from $449.1m in 1H24.
The core rental business has grown, with rental revenue increasing by 8% and the rental fleet expanding by 11%.
“Pleasingly, New Zealand rentals and sales has gone from strength to strength and grown ebit. New Zealand increased rental revenue by 25% during a period in which inbound visitor growth was only 6%.
“The most notable decline has been in our Australian division, mainly due to challenges in the retail dealerships, which have seen the greatest impact from the current cycle.”
Webster said numerous expansion projects were continuing, including the transition to a single digital platform across multiple areas and investments in new properties such as Waitomokia in Auckland and Perth in Australia.
The firm also launched its bespoke fleet management and booking system, Motek, in Canada.
“We are also pleased with the progress we’re making in our cost reduction and optimisation initiatives and are on track to meet our goal to deliver an npat benefit of at least $12m in FY27. We continue to seek out and harvest the benefits from the merger.”
Webster and Quinn’s letter to shareholders shared their confidence in the Government’s approach to the industry.
“In our view, this marks the first time in several years that the tourism industry in New Zealand has had such Government encouragement.
“New Zealand remains an appealing destination to international tourists and has the potential to reach, and ultimately exceed, 100% of pre-Covid visitors.”
Tourism Holdings said it was focused on increasing underlying npat in FY25, but “acknowledges the risks and uncertainty in the coming period”.
Of concern for the business was the Australian RV market, where the company said volumes and margins were “not yet showing signs of a recovery from the bottom of the cycle”.
Key factors driving variability in the second half of FY25 for Tourism Holdings include the recovery of the North American market for vehicle sales, which typically starts around May.
The impact of the Los Angeles fires gave the firm opportunities in North America for non-tourism bookings, with ongoing discussions concerning larger wholesale vehicle sales opportunities.
There are also short-term impacts following the introduction of tariffs by US President Donald Trump.
The initial threat of tariffs resulted in an increased demand for the firm’s Canadian fleet, with the threat of further tariffs impacting the market.
Market factors, including a more prolonged downturn in RV sales, may delay the firm’s recovery until FY26 and prevent it from delivering underlying npat growth in FY25.
An interim dividend of 2.5c a share, 100% imputed and 0% franked, will be payable on April 4, 2025.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
