Ryman said it had experienced disappointing sales volumes for serviced apartments. Photo: 123RF
Two major companies - Air New Zealand and Ryman Healthcare - have downgraded their profit outlook.
Shares in Ryman Healthcare fell sharply as the company announced a "disappointing" profit downgrade.
The retirement village operator said its full-year underlying profit expectations for the year ending in March would be down on last year's $302 million, on the back of disappointing sales volumes and margins in a range $265 million to $285m.
Ryman shares fell 9 percent during early trade following the news.
The company said sales volumes were down as it was taking longer to sell serviced apartments in buildings that were not fully completed.
Resale margins were also down, although the volume of sales rose 7 percent.
Ryman also expected portfolio growth to be at the low end of its 650- to-750-unit guidance, with net debt at similar levels to the first half.
Forsyth Barr senior equities analyst Aaron Ibbotson said Ryman's downgrade was "disappointing", despite a "minor silver lining" as the company expected net debt to be similar to its first half.
"The main issue Ryman point to is slower sales of serviced apartments in villages where the main building has yet to be finished. A reasonable explanation but arguable something that shouldn't come as a surprise to a company with Ryman experience," he said.
Meanwhile, Air New Zealand shares were down less than 1 percent following its profit downgrade.
Air New Zealand was also warning its full-year earnings for the year ending June would be hit by weaker demand, ongoing engine maintenance costs and economic risks.
The national carrier said its pre-tax profit for 2024 was likely to be in the range of $200m to $240m, which compared with last year's $585m.
The airline said it was facing competition from US carriers, and weaker corporate and government travel demand.
Forsyth Barr said Air New Zealand's pre-tax profit guidance was lower than the investment firm's previous consensus of $262m.
Air New Zealand was set to release its half-year result later this week, with profit expected to be little changed from expectations.
