This article is from the Australian Property Journal archive
ENDEAVOUR Group, the owner of hotels, Dan Murphy’s and BWS, posted an increase in sales across FY24, but its share price fell on the news of softer recent trade.
Group sales lifted 3.6% compared to FY23, to $12.3 billion, while group EBIT increased 3.1% to $1.1 billion.
However, group net profit after tax fell 3.2%, to $512 million, and earnings per share by 3.1% to 28.6c.
The dividend of 21.8c was in line with FY23.
Endeavour operates more than 1,700 BWS and Dan Murphy’s stores, as well as 350 pubs and six wineries.
“Endeavour Groupʼs F24 financial results demonstrate the resilience of our brands and businesses in response to challenging trading conditions, with both our retail and hotels segments delivering sales and EBIT growth in a softening consumer environment,” said Endeavour Group managing director and CEO, Steve Donohue.
Shares fell 38c yesterday to $5.15, having hit as low as $5.10.
“Underlying sales momentum in both the retail and hotels segments improved slightly through the first seven weeks of trading compared with Q4, with our focus on offering the best prices across both the retail and hotels segments continuing to attract an increasingly value-conscious consumer,” Donohue said.
He said that “with household budgets under pressure, value-conscious consumers” continue to seek out Dan Murphyʼs. Its My Danʼs membership program claims 5.4 million active members.
Its Pinnacle Drinks division generated $1.8 billion of retail sales, with over half coming from wine where growth was driven by the premium and luxury segments.
Optimised food and bar menus and upgrades to accommodation delivered sales and gross profit margin improvement to its hotels division. Gaming returned to growth in the second half, supported by investment in new games.
Endeavour was spun out of Woolworths three years ago.
