Endeavour Group expects ‘flat to modest’ growth | Australian Markets
Pubs and motels giant Endeavour Group is tipping marginal growth for liquor chains Dan Murphy’s and BWS amid ongoing weak spot in client demand for booze.
In a third-quarter trading replace launched on Monday, Endeavour revealed the robust gross sales momentum at its pubs was in stark distinction to the efficiency of its national community of 1722 bottle outlets.
Retail gross sales declined 3.1 per cent to $2.3 billion within the 13 weeks to the beginning of April, whereas motels grew 5.1 per cent to $512 million. Total group gross sales fell 1.7 per cent to $2.8b.
The company — which final week appointed former Virgin Airlines boss Jayne Hrdlicka as its new chief govt — expects “flat to modest” gross sales growth for its liquor shops for the remaining of the fiscal 12 months.
“In Q3 hotel sales improved while off-premise demand remained subdued and our retail business continued to recover from the impact of supply chain disruption,” Endeavour govt chair Ari Mervis stated.
“We have made an encouraging start to Q4. In retail we delivered an Easter sales result in line with Easter sales in the previous year and in hotels we continued to see good growth across all drivers — food, bars, gaming and accommodation.”
Endeavour stated client spending exercise exterior of key social events remained comparatively subdued, noting there have been solely a restricted quantity of such occasions left for the remaining of the financial 12 months.
While it expects retail trading circumstances to steadily improve as inflation moderates and the prospects for rate of interest cuts increase, the group warned value inflation would stay a headwind for the rest of the financial 12 months.
Endeavour shares had been up 1.9 per cent to $4.24 in morning trade.
More to come.
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