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A slump in sales in the United States drove Tourism Holdings’ (THL) net profit down by 26% for its fiscal year, which ended in June.

The New Zealand Herald reported that THL reported its net profit dropped by 52% to $29.8 million (NZ currency). The prior year included a one-off gain of $23.1 million relating to the formation of the technology company, Togo Group, a division of Thor Industries Inc. and Tourism Holdings Ltd.’s TH2 joint venture.

The company’s net profit, excluding nonrecurring items, came to $27.9 million, slightly above the latest market guidance but down from $37.5 million last year. Total group revenue came to $423 million, down 1%, while rental revenue was up 9%.

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.”

The U.S. business was down primarily due to vehicle sales volumes falling by 34% on the prior year. That market remained a 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.

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