Tourism Holdings reports 58% profit increase

Tourism Holdings (THL) has reported a net profit after tax of $39.7 million for the six months ending Dec 31 2023, representing a 58% increase compared to the same period the previous year.

The company's rental business performed well globally, with rental yields either growing or remaining stable in all markets.

THL also saw a 15% growth in its closing rental fleet, which reached 7,366.

An interim dividend of 4.5 cents per share, 100% imputed and 25% franked, was declared.

However, THL highlighted the challenging global vehicle sales environment, which resulted in fewer sales volumes and normalising gross profit margins in most markets.

The company's chief executive, Grant Webster, expressed confidence in THL's position and its ability to capitalise on the future growth of the travel sector.

THL's full-year net profit after tax is expected to be around $75m, with a goal of $100m in FY26.

The interim financial statements can be found on THL's website, as well as the NZX and ASX websites.