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In a triumphant financial update, Tourism Holdings Limited (thl) disclosed a historic net profit after tax (NPAT) of $49.9 million, a monumental $52 million surge compared to the previous year. Additionally, the company declared a landmark underlying NPAT of $47.8 million and a pro forma underlying NPAT of $77.1 million after factoring in the impact of acquisition accounting. Remarkably, after removing the acquisition accounting impact, the pro forma underlying NPAT further soared to $81.1 million, surpassing the previous guidance of $75 million.

The successful initial integration following the historic merger with Apollo underscores the strength of the newly formed entity. The Group Return on Funds Employed stood at an impressive 15.8%, and the final dividend was announced at 15 cents per share (100% imputed, 25% franked), representing the full-year dividend since no interim dividend was disbursed.

As part of the new thl dividend policy, the company aims to distribute 40-60% of the underlying NPAT. The positive growth outlook for FY24 and beyond further fortifies the company’s position, with additional guidance on medium-term growth aspirations to be provided at the 2023 Annual Meeting.

Reflecting on the financial year ending 30 June 2023 (FY23), Cathy Quinn, thl Chair, expressed that the results signify an exceptional performance and validate that the merged entity, encompassing thl and Apollo, is more robust and resilient. “We believe that thl has a positive future, and as a Board, we are focused on supporting the future growth of thl,” Quinn stated.

thl Chief Executive, Grant Webster, echoed Quinn’s sentiments, emphasizing the momentous occasion for reflection and celebration. “thl has delivered a record underlying NPAT, having successfully merged with Apollo in November 2022, alongside a long list of other achievements and progress,” Webster said.

Under the proactive leadership of thl, the organization has facilitated the seamless integration of thl and Apollo and expanded its business by opening new locations, launching new fleets, and advancing sustainability initiatives. All these accomplishments were achieved while managing the resurgence of international tourism and delivering a record result.

“The tourism industry is in a positive position, ready to be a key driver of the economies in New Zealand and Australia in particular over the coming 12 months,” Webster noted.

In recognition of the unwavering dedication of its crew during this pivotal period, thl announced a bonus of $1,000 worth of thl shares net of tax (or a cash equivalent for eligible employees outside Australasia). It is estimated that around 1,800 employees will be eligible for the bonus, expected to be paid in September or October 2023.

Webster expressed immense pride in the thl crew for their resilience during the most challenging period in the company’s history. “The results that we are now achieving are a real testament to all our thl crew globally (old and new), who come to work every day with an immense passion for creating unforgettable journeys,” Webster said.

The FY23 result included several statutory one-off items, primarily related to merger transaction costs and acquiring the remaining 51% shareholding in Go. The results are further complicated by having Apollo’s trading for only seven months, from December 2022 to June 2023.

A pro forma view of the results of both thl and Apollo across the entire 12 months has been included in the Investor Presentation to assist shareholders in understanding the performance of the combined business. Shareholders are strongly encouraged to review the Investor Presentation for further detail, including a reconciliation between the statutory, underlying, and pro forma results.

The 2023 Integrated Annual Report, including the financial statements and the Investor Presentation, is available on thl’s website and NZX/ASX.