THL (ASX: $THL) H1 FY24 Interim Results Overview

THL (ASX: $THL) has reported its H1 FY24 interim results, with a net profit after tax of $39.7M, marking a significant 58% increase compared to the prior corresponding period. The company's rental fleet has shown continued growth, closing at 7,366 vehicles, up 15% from the prior corresponding period. An interim dividend of 4.5 cents per share has been declared, fully imputed at 100% and 25% franked. THL expects NPAT in FY24 to be around $75M, with potential upside from rental demand and yields, while acknowledging downside risk from the uncertainty surrounding retail vehicle sales.

Executive Commentary on H1 FY24 Interim Results

Net profit after tax for H1 FY24 has shown a robust increase of 58% compared to the prior corresponding period, reflecting the strength of our rental operations and the resilience of our business model. The global vehicle sales environment has presented challenges, impacting sales volumes and gross profit margins. However, our rental demand and yields have outperformed expectations, providing some upside potential. While we anticipate NPAT in FY24 to be around $75M, we remain committed to our goal of delivering $100M in NPAT in FY26, leveraging the strength of our rental earnings and the anticipated synergy benefits from the Apollo merger.

THL's Outlook and Corporate Strategy

THL's H1 FY24 interim results have demonstrated a robust performance, with a 58% increase in net profit after tax and continued growth in the rental fleet. The company expects NPAT in FY24 to be around $75M, with potential upside from rental demand and yields, while acknowledging downside risk from the uncertainty surrounding retail vehicle sales. Looking ahead, THL reiterates its goal to deliver $100M in NPAT in FY26, leveraging the strength of its rental earnings and the anticipated synergy benefits from the Apollo merger. The company remains focused on achieving its ambitions and goals, aiming for a more sustainable earnings composition amidst the challenges posed by the global vehicle sales environment.