• Underlying net profit after tax of $26.5M, down 33%
• Continued recovery in international tourism underpins rental fleet growth of 11% and rental revenue growth of 8%
• Ongoing vehicle sales challenges result in 4% decrease in sale of goods revenue and lower margins for ex-rental and retail RV sales

Tourism Holdings Limited (thl) has released its FY25 interim results, reporting an underlying net profit after tax of $26.5M, down 33% compared to the prior corresponding period. Statutory net profit after tax was $25.3M, down 36%. The group's Return on Funds Employed (trailing 12 months) was 8.1%, with the New Zealand divisions performing above the 15% target, while the North America and UK/Ireland divisions remained below target. The company's rental fleet grew by 11% and rental revenue increased by 8%, underpinned by the continued recovery in international tourism. However, ongoing vehicle sales challenges resulted in a 4% decrease in sale of goods revenue and lower margins for ex-rental and retail RV sales. thl is progressing cost-out and optimisation initiatives and remains confident in delivering a benefit of at least $12M in NPAT by FY27. While the company is focused on increasing underlying NPAT in FY25, it acknowledges the risks and uncertainty in the coming period, and market factors, including a more prolonged downturn in RV sales, may delay the recovery until FY26 and prevent the company from delivering underlying NPAT growth in FY25.

thl intends to provide FY25 earnings guidance in the fourth quarter of FY25, when there is more clarity.

thl remains focused on increasing underlying NPAT in FY25, but acknowledges the risks and uncertainty in the coming period. Market factors, including a more prolonged downturn in RV sales, may delay the recovery until FY26 and prevent the company from delivering underlying NPAT growth in FY25.