Photo: 123RF
Tourism Holdings (THL) has significantly raised its full year profit guidance, following a stronger than expected rebound in tourism activity.
The campervan and tourism company was now forecasting full year net profit above $30 million, which was above the top end of its prior guidance of earnings between $17m and $30.2m.
"The improved outlook is primarily a result of performance in the first quarter of FY23 exceeding earlier expectations and greater certainty of forward rental revenue for the upcoming high season in Australia and New Zealand," the company said in an announcement to the stock exchange.
It said demand and rental yields for the upcoming summer had also been above prior forecasts, with yields up by more than a third on levels seen in Aotearoa in 2019 and 70 percent above where they were in Australia for the same year.
Campervan sales continued to perform well from a margins perspective in on both sides of the Tasman and the reduction in margins in the USA was slower than forecast, the company said.
The slowdown in retail vehicle demand was in line with softer economic outlook, THL said.
"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," THL said.
THL recently got the green light from competition regulators on both sides of the Tasman to acquire Australian based Apollo Tourism & Leisure.
To get the deal over line, both parties agreed to sell various parts of its motorhome operation to the Jucy Group for $45m.