Tourism Holdings Rentals (THL) H2 2024 earnings summary

Executive summary

• Underlying profit after tax for FY24 was NZD 51.8 million, within guidance; statutory net profit was NZD 39.4 million, including a NZD 12.4 million goodwill impairment for UK and Ireland divisions.

• Record EBIT achieved in New Zealand Rentals and Sales, Action Manufacturing, and New Zealand tourism businesses.

• Final dividend declared at NZD 0.05 per share, totaling NZD 0.095 for the year, fully imputed.

• Rental fleet grew 10% to 7,921 vehicles.

• Group Return on Funds Employed (ROFE) was 10.0%.

Financial highlights

• Revenue was NZD 922 million, up 5% year-over-year on a pro forma basis.

• Underlying EBIT was NZD 111.1 million, down 20% year-over-year; underlying EBITDA was NZD 206.9 million, down 6%.

• Statutory net profit: NZD 39.4 million; underlying profit after tax: NZD 51.8 million.

• Net debt increased to NZD 446 million, up 56%, with leverage ratios remaining appropriate.

• Full year dividend payout was 40% of underlying NPAT, at the lower end of policy.

Outlook and guidance

• Underlying NPAT expected to increase in FY25, with growth in rental hire days across key markets.

• Recovery in bookings is slowing, with a return to pre-COVID levels expected to take longer.

• The 100 million NPAT goal for FY26 has been delayed due to prevailing economic headwinds.

• Fleet CapEx for FY25 will be lower than the past two years; focus on improving fleet utilization.

• Growth in NPAT for FY25 is expected to be weighted toward the second half.