The Endeavour Group has released its trading update for the third quarter of 2023, with group sales up 3.7 per cent to $2.83 billion across its retail and hotel channels.
Steve Donohue, Managing Director and CEO of the Endeavour Group, said solid results across retail and hotel channels resulted from stable trading resumption compared to the COVID-impacted results of 2022.
“Australians love socialising and our network of brands are a go-to for consumers, whether they are enjoying a great value meal at one of our hotels, or taking advantage of the best prices on a great range of drinks,” he said.
Endeavour Group’s retail operations most notably include Dan Murphy’s, BWS and Pinnacle Drinks, bringing in a combined revenue of $2.4 billion, a 1.2 per cent increase on the previous year.
“Customer sentiment remained strong. Notably, our My Dan’s membership program has continued to grow, reaching a significant milestone in the quarter with over 5 million active members. This reflects the popularity of the Dan Murphy’s offer and our famous Lowest Liquor Price Guarantee.
“In BWS, customers continue to embrace our local and convenient offering, reflected in an increase in transactions in the quarter. This was supported by another successful App Cooler promotion across January and February,” said Donohue.
Hotel sales were even more robust, increasing 18.5 per cent to $480 million, with strong growth of 31.5 per cent in the first five weeks, followed by a growth rate of 11.5 per cent in the final eight weeks of the 13-week quarter.
“In Hotels, food, bars and accommodation have all continued to be materially above the prior year in which COVID19 impacted both customer demand and team availability levels.
“This was supported by over 100 live events held across the quarter, with ticketed events attracting over 38,000 patrons. Gaming has returned to pre-pandemic share of turnover, with low single-digit growth in the quarter,” said Donohue.
And the Group continues to grow, adding five new hotels to its network during the quarter, including 16 bars, five bistros, seven accommodation rooms and 112 Electronic Gaming Machines, taking the total to 353 hotels nationwide.
Progressing into Q4, the Group expects generally consistent trading but said it would remain alert to the rising cost of living pressures impacting customers and rising interest rates resulting in higher financial costs.
“As we look ahead we continue to closely monitor customer choices in the context of the macroeconomic climate. We remain confident that we offer a great breadth of options and value for all social occasions and we will continue to tailor our offering as the environment requires,” said Donohue.
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