Stock image. Tourism Holdings has slashed its earnings forecast by about a third Photo: 123RF
Major campervan operator Tourism Holdings has slashed its earnings forecast by about a third, with the company blaming weaker economic conditions.
The company, which has a portfolio that includes Apollo and Britz campervan brands, said its full-year profit was likely to be between $50 million and $53m, compared to its earlier guidance of around $75m.
Tourism Holdings suspended share trading last week ahead of the announcement, with trading set to resume at market open on Monday.
"The weakening economy has impacted most regions and business divisions negatively and lowered expectations into Q4," the company told the share market.
"Vehicle sales have been a major factor globally, with sales volumes and margins now declining more quickly than expected in most markets."
It said more than 50 percent of the overall fall in underlying profit was due to the Australian retail dealership division, with a shortfall in sales of its high-margin former fleet vehicles.
Rental yields were in line with expectations, but Tourism Holdings warned a slowdown in forward booking intakes would lead to weaker than expected performance for the remainder of the financial year.
The company also warned it was "probable" that there would be a write-down relating to its United Kingdom and Ireland business as part of the "2024 year-end process".
Tourism Holdings retained its goal of $100m in after-tax profit in the 2026 financial year.
"[The company] has considered the assumptions underlying the goal and believe the goal remains appropriate based on a positive rental growth outlook and a recovery in the RV sales market globally," it said.