Fleetwood Limited, an ASX-listed company based in West Australia, reported an “outstanding year” for its caravan repairs and RV accessories, thanks to the increased demand for RV products and services during the COVID pandemic.
Fleetwood’s RV Solutions division, including Northern Camec and Northern RV, reported an increase in annual profit of AU$9.8 million off the back of AU$81.2 million in revenue for the 2021-22 period.
The profit is up from $72.4million in revenue and $7.8million in profit the previous year, according to a report.
“RV Solutions continues to benefit from strong domestic tourism demand,” Fleetwood Non-Executive Chairman John Klepec told shareholders.
“While some of this demand is forecast to decline as international travel returns, the larger fleet of imported and domestic caravans already purchased will continue to fuel second-hand and aftermarket demand for the services and products of RV Solutions for years to come.”
Fleetwood said that the sale of new product offerings, including sandwich panel walls and aluminum wall frames, would help boost future revenue by tapping into the many buyers of second-hand vans that are looking to renovate or update their vehicles.
However, the company warned the potential impact of recent interest rate rises, fuel increases, and the impact on discretionary spending is being closely monitored.
“The business will likely remain in a strong position through exposure to the locally-built RV market via the parts business Camec and to overseas imports through the services business Northern RV,” it told shareholders.
The boom in caravan sales during the past two years will likely continue to deliver demand for the aftermarket service and renovation offering of Northern RV.
This article originally appeared on Caravan Camping Sales.
