Endeavour falls short of profit expectations despite “strong” trading results

Endeavour Group’s F23 financial results were announced this morning at their annual Results Management Briefing held via teleconference.

The Group’s share price was down four per cent to $5.74 immediately after the announcement despite trading results that Steve Donohue, Managing Director and CEO of the Endeavour Group, described as strong.

“In F23, Endeavour Group has delivered a strong financial result underpinned by the strength of our Retail brands, portfolio of hotels and team capabilities.”

“Both the Retail and Hotels segments have demonstrated stability as Australians continue to come together to enjoy social occasions that represent great value. Group sales grew 2.5 per cent for the year to $11.9 billion, with Group EBIT increasing by 10.7 per cent to $1,023 million,” he said.

In the 12 months to 30 June, Endeavour reported a 2.5 per cent increase in sales to $11.9 billion, which a statement from the Group said was resilient despite “economy-wide inflationary pressures.”

Coming out of COVID, Endeavours’ Hotels segment performed well, delivering a 35.9 per cent increase in EBIT to $428 million to offset a 1.2 per cent decline in Retail EBIT to $658 million.

Dan Murphy’s continued to perform well, reporting good growth in its loyalty program, My Dan’s, which now has 5.2 million active members, a 15.6 per cent increase from last year, with a record scan rate of 79 per cent.

BWS also put in a solid performance, supported by the post-COVID trend towards local and convenient shopping, which particularly resonated with Gen Z customers.

Donohue said that overall the Group has had a good year, with all segments of the business trading in a stable post-pandemic environment with solid results across the board. “In summary, the group delivered a strong result in F23,” he said.

“We’ve maintained a disciplined approach to cost management, accelerated our customer experiences digital transformation, and made progress against liability strategy all while growing our network and investing for the future.

“All businesses and are trading in a stable post pandemic operating environment with retail delivering very solid results including maintaining industry leading EBIT margin,” he said.

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