Online sales at the Endeavour Group have reached $1b, growing by 16.8 per cent for the quarter and hotel trading has turned a corner with growth of 3.8 per cent to $405m.
The easing of restrictions in New South Wales and Victoria supported the growth in hotel trading which was slightly hindered by the arrival of trading restrictions in WA that led to a decline within that market. However, the flood events and extreme weather in New South Wales and Queensland caused $9m in damages which reduced the EBIT for the period and the insurance claim process is underway.
Endeavour’s team members were severely impacted by the eastern weather events and the Dan Murphy’s Lismore store was submerged in the flooding and ten of EDG’s BWS stores as well as the Breakfast Creek Hotel Brisbane and Westower Tavern Ballina were significantly impacted.
Five stores and one hotel remained fully or partially closed as at the end of the quarter.
Overall, Endeavour’s total sales for the first three months of the year declined 2.1 per cent to $2.72 billion.
Endeavour Group Managing Director and CEO, Steve Donohue, said “These results are once again delivered within the context of an uncertain operating environment with extreme weather events, ongoing supply chain disruptions and growing inflationary pressures creating new challenges. …
Endeavour attributed the retail sales decline of 0.7 per cent to customers returning to on-premise venues and it continued to invest in the hotels side of the business, renewing with eight hotels and acquiring two: The Empire Hotel and The Grand Tasman Hotel, both in South Australia. Endeavour now owns 344 hotels, including five managed clubs at the end of the quarter.
Mr Donohue said that the market “continues to be buoyant” and the business continues “maintain a disciplined approach” while remaining on the lookout for opportunities for further acquisitions.
Online sales reached $222m for the quarter and Endeavour continues to invest in digital platforms and engagement with campaigns including the BWS Cooler campaign and Dan Murphy’s personalisation capability.
Dan Murphy’s opened one store during the quarter, bringing the total store network to 258. In BWS, five stores were opened, thirteen renewed and four closed, ending the quarter with 1,411 stores.
Mr Donohue is positive about the 2022 South Australia vintage for Pinnacle Drinks, even while he suggested that the harvest in Victoria was a bit light. Pinnacle contributes around $1.3b in revenue to Endeavour annually.