Woolworths has reported its first quarter sales results for financial year 2020 with strong sales growth across the group of 7.1 per cent to $15.9bn.

Endeavour Drinks reported growth of 4.9 per cent (comparable 3.2 per cent) up to $2.18bn with both BWS and Dan Murphy’s reporting solid growth. The result was also positive for the group’s hotels division with sales growth of 5.5 per cent (comparable 3.6 per cent) to $468m, driven by strong performance in food and bars.

Speaking about the Endeavour Drinks result, Group CEO Brad Banducci said: “In Endeavour Drinks, both BWS and Dan Murphy’s delivered comparable growth across all key categories with Beer and Spirits and the growth of Pinnacle the highlights. In September, Endeavour Drinks acquired Chapel Hill Winery and established Paragon Wine Estates to house our portfolio of premium regional wines.”

He added: “Hotels’ strong sales in Food and Bars benefitted from recently refurbished venues and successful promotional activity.”

The group reported that both BWS and Dan Murphy’s saw online sales momentum increase, with total Endeavour Drinks online sales up by 20.7 per cent on last year. The quarter also saw the Dan Murphy’s loyalty program (My Dan’s) relaunched with the membership base growing to over 3.7 million.

During the quarter, seven BWS stores were opened, and one store was closed ending the quarter with 1,352 stores. Dan Murphy’s store network was unchanged, ending the period with 230 stores.

In terms of the hotels business, the group reported that by category, bars, food and accommodation all delivered strong growth. Gaming sales remain more subdued, particularly in Victoria.

The number of Hotels remained unchanged at 328 during the quarter (including five managed clubs).

Banducci also touched on the proposed merger of Endeavour Drinks and ALH, with that business then demerging from the Woolworths Group.

He said: “The Endeavour Group transaction is progressing well with the next key milestone a shareholder vote on the Restructure Scheme on 16 December.”

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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