US sales slump drags Tourism Holdings profit down 26%

Tourism Holdings annual net profit has slumped on the back of poor sales in US. Photo / Supplied.

A slump in sales in the United States drove Tourism Holdings' (THL) net profit before recurring items down by 26 per cent in the June year, the campervan rental and sales company said.

THL said its net profit dropped by 52 per cent to $29.8m. The prior year included the a one-off gain of $23.1m relating to the formation of the technology company, Togo Group.

The company's net profit, excluding non-recurring items, came to $27.9m, slightly above the latest market guidance of $25-$27m, but down from $37.5m last year.

Total group revenue came to $423m, down 1 per cent, while rental revenue was up 9 per cent.

THL chairman Rob Campbell, said the board was not satisfied with the result.

"We remain very confident in the future of the business and our competitive position within the market," he said.

"We have a strong balance sheet and our global growth strategy remains in place," he said in a statement.

The US business was down, primarily due to vehicle sales volumes falling by 34 per cent on the prior year. That market remained "primary area of focus" for 2020.

"This market is a key priority for us in the new financial year, and we are well under way with the implementation of our USA review conducted earlier in 2019," chief executive Grant Webster said.

While it had been a difficult year in the US, 2019 had been a record-breaking year for a number of businesses within THL.

The New Zealand rentals and sales business delivered earnings before interest and tax of $31.5m, representing 23 per cent growth on the prior year.

The Australia and Waitomo businesses also had record EBIT results.

THL said it remained committed to the Togo Group technology joint venture it has with Germany's Thor Industries.

"The Togo RV product is behind from a development perspective, but we are confident that the opportunity remains substantial," Webster said.

The company declared a final dividend of 14c per share, 50 per cent imputed, keeping the full-year dividend in line with the prior year's at 27 cents per share.