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NZX-listed THL enjoyed a strong first quarter. Photo / Supplied
Tourism operator and recreational vehicle (RV) company THL said it had upgraded its net profit forecast for the June 2023 year to above $30 million thanks to a strong first quarter.
That compares with guidance issued in August of a net profit of between $17m and $30.2m, which was aligned with the range of analyst forecasts at that time.
The Commerce Commission last month granted clearance for THL to acquire Australia’s Apollo Tourism and Leisure and today’s guidance includes the impact of an estimated $3.5m in Apollo-related transaction costs.
“The improved outlook is primarily a result of performance in the first quarter of 2023 exceeding earlier expectations and greater certainty on forward rental revenue for the upcoming high season in Australia and New Zealand,” the company said.
“Demand and rental yields for the upcoming high season have been above prior expectations, with yields (across the financial year to date and current summer bookings) up by more than 35 per cent on full-year 2019 levels in New Zealand and up by more than 70 per cent on full-year 2019 levels in Australia.”
Vehicle sales continued to perform well from a margin perspective in all markets.
“New Zealand and Australia continue to deliver sales margins in line with full-year 2022 performance, and the reduction of sales margins in the USA towards historical levels is occurring at a slower rate than previously guided.”
THL had observed a decline in retail vehicle demand, in line with current deteriorating economic conditions.
“However, supply chain issues in motorised RVs are now expected to continue deeper into 2023, resulting in a continuing shortage of sales stock in the market that is holding up sales margins,” it said.
THL is the largest commercial provider of RVs for rent and sale in Australia and New Zealand, and the second largest in North America.
In New Zealand, THL owns Kiwi Experience and operates the Discover Waitomo group. THL also owns Action Manufacturing, a leading motorhome and specialist vehicle manufacturer.
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