Endeavour Group has reported a lift in first-half retail sales to $5.5 billion, a 0.3 per cent increase, driven by price cuts and promotional activities that boosted second-quarter growth. Dan Murphy’s and BWS experienced a sales rise of 0.7 per cent for the half, and 2.2 per cent in the second quarter, achieving a record December and a new daily sales high on Christmas Eve. Endeavour Group operates retail outlets like Dan Murphy’s and BWS, and also manages hotels and hospitality venues across Australia. The company focuses on providing a wide range of alcoholic beverages and related products and services.
However, this push to regain sales momentum has impacted profitability, with the retail gross profit margin expected to decrease by approximately 0.85 percentage points. Retail earnings before interest and tax are forecast to be between $323 million and $328 million, down from $370 million in the previous year. In contrast, the hotels segment performed strongly, with sales increasing by 4.4 per cent to $1.2 billion and EBIT expected to be in the range of $271 million to $275 million. The group’s profit before tax, before significant items, is projected to be between $400 million and $411 million.
According to new Endeavour chief executive Jayne Hrdlicka, the pricing and promotional strategies have yielded positive sales outcomes. “In a competitive market landscape, we have focused on reinforcing customer confidence in the value we offer across all channels, particularly in Dan Murphy's unbeatable price and customer experience,” she stated.
In addition to the financial update, Endeavour Group announced that Paul Carew will be stepping down from his position as ALH Hotels managing director this month to pursue other opportunities. Paul Walton, currently the director of Pinnacle Drinks, has been appointed as the interim ALH Hotels managing director.
