Dan Murphy’s carries Endeavour, pubs slow

Endeavour Group lifted first quarter sales 2.8 per cent to $3.18 billion, with a growth in transactions at Dan Murphy’s offsetting a slowdown in its hotels business.

Retail sales from Dan Murphy’s and BWS rose three per cent to $2.58 billion for the 14 weeks to 4 October. Endeavour said promotional intensity remained elevated, particularly online, and that Retail began cycling higher prior-year sales at the end of the quarter, following last year’s introduction of lower shelf prices and an uplift in industry-wide promotional activity.

Endeavour Group managing director and CEO, Jayne Hrdlicka, said, “In a challenging macro-economic environment, our Retail business continued to outpace the overall liquor market, delivering three per cent sales growth in Q1, reflecting a very strong July and more moderate consumer spending since.”

She said Retail has now achieved four consecutive quarters of sales growth, normalised for the timing of Easter.

Hotels moderate

Hotels sales grew 1.9 per cent to $603 million. Food and beverage sales were supported by a record 38 per cent scan rate among pub+ loyalty members, while gaming revenue was flat on the prior year as activity moderated in line with the market.

Hrdlicka said, “Sales growth in Hotels moderated in Q1 as growing cost of living pressure, including higher fuel prices, impacted discretionary spending.”

Endeavour expects to complete 34 hotel refurbishments and renewals by the end of the first half.

The update follows Endeavour’s F26 result, when underlying net profit fell 14.8 per cent to $363 million and the group booked $372 million in pre-tax significant items tied to its strategy review.

Hrdlicka said, “Looking ahead, we expect customers to continue to manage their spending carefully and prioritise value for money in their purchasing behaviour.”