The group, which also runs hotels and wineries, delivered sold full-year results, but a slightly weaker start to the year is weighing on the company.
, the owner of Dan Murphy’s and BWS chains, fell in early trade on Monday after revealing a softer start to the new year in its liquor stores as shoppers hunt value, buying bigger packs of ready-to-drink products and beer slabs.
Steve Donohue, CEO of Endeavour Group, is expecting sales in coming months to be supported by Father’s Day and Christmas.The stock fell 31¢, or 5.6 per cent, to $5.22 after Endeavour said sales in the first seven weeks grew just 0.6 per cent in retail and 2 per cent in hotels when compared with a year ago amid a strong turnout as Australia co-hosted the FIFA Women’s World Cup. UBS estimated sales growth of 2 per cent early in the year at its retail stores and 0.5 per cent at hotels.
“People continue to spend about the same amount of money, they’re just demanding value for money,” he said. While trading improved slightly in February and March, conditions softened throughout the second half.Retail sales grew to $10.2 billion over the 53 weeks to June 30, a gain of 3.4 per cent, or by 1.7 per cent on a 52-week basis, in line with analysts’ expectations. On a comparable store basis, sales at BWS and Dan Murphy’s grew by 1.1 per cent. Retail earnings gained 4.9 per cent to $1.
Mr Donohue said the group’s financial results showed the resilience of its brands with household budgets under pressure. He noted the My Dan’s membership program has beefed up its member-exclusive discounts and personalised offers for its 5.4 million active members, with members spending 80 per cent more per transaction than non-members. The CEO hopes to create simular success in the new hotels loyalty program Pub+.
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