Apollo rides caravan retail boom
Sharp drop-off in rentals offset by surge in RV sales for Brisbane-based operatorApollo Tourism and Leisure has been hit hard by worldwide travel restrictions during the COVID-19 pandemic, reporting an 18.8 per cent drop in overall revenue for the second half of 2020 as its RV rental and retail operations in Australia, New Zealand, North America and UK/Europe were affected by border closures and lockdowns.
The ASX-listed company reported overall revenue of $160.2 million during the second half of 2020, down from $197.2 million for the same period in 2019. That resulted in a $7.5 million after-tax loss, compared to an $11.3 million profit in the previous half.
Apollo said the net loss after tax included $4 million in government wage subsidies.
The lack of international visitors to Australia contributed to a 63 per cent drop locally in RV rental income, down to $10.9 million. However, overall sales of ex-rental fleet vehicles soared to $14.1 million, as Apollo reduced the size of its rental fleets.
With limited supply of new caravans and motorhomes due to Melbourne caravan factory lockdowns and cuts in production at its own Brisbane factory, Apollo reported a 10 per cent drop in new RV sales, to $64.2 million.
Apollo's Brisbane factory is currently "focused solely on production for retail sales, to leverage the strong demand for RVs", with the company holding $49.4 million in forward orders from the end of January -- a 192 per cent increase.
“We expect the recent increase in retail Recreational Vehicle (RV) demand to continue as people seek more freedom and control over their holiday choices," Apollo CEO Luke Trouchet said.
"With limited options for travel related discretionary spend, and many people finding themselves with more spare time than previously, an RV holiday is an increasingly attractive option.”
Apollo builds composite caravan and motorhomes under various brand names including Windsor, Coromal and Winnebago at its 20,000 sq.m production facility in Brisbane, as well as operating large RV rental fleets in Australia and overseas.
The company also distributes lightweight European Adria RVs, has a stake in the RV sharing platform Camplify and owns a number of caravan dealerships, including Queensland’s Kratzmanns and the Sydney RV Group.
Apollo said that Camplify had experienced recent "strong growth", with (unaudited) GTV (total transactions before expenses) of $11.9m, up from $5.6m for the previous half.
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