Endeavour Group (EG) has reported its financial results for FY2023, with growth in all the key areas as group sales increased by 2.5 per cent on the previous year to $11.9bn.

There was also growth in group earnings, up 10.7 per cent to $1.02bn and group net profit after tax increased by 6.9 per cent to $529m, with Managing Director and CEO Steve Donohue saying the strong financial result was underpinned by the strength of EG’s 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,” Donohue said.

He added: “Retail sales momentum is returning after a period of rebalancing post-pandemic, with full year sales of $9.9bn. The H1 result reflected the cycling of the elevated pandemic performance, registering a 3.7 per cent sales decline. H2 saw a return to growth with a 0.7 per cent increase in sales.

Over the last four years, our Retail business has achieved a compounded annual growth rate (CAGR) of 4.0 per cent. Pleasingly, sales growth has continued in the first six weeks of FY24 trading with an uplift of 2.5 per cent.”

Looking at the hotels business, Donohue said: “Providing [a] comprehensive range of experiences has delivered strong results in the first period of unrestricted trading since 2019. Sales grew 31.0 per cent to $2bn in F23, and EBIT of $428m was up 35.9 per cent. F23 saw the welcome return of live music and events resulting in nearly 172,000 tickets sold. Sales growth in our hotels segment over the last four years has delivered a CAGR of 4.8 per cent.”

Donohue also said that EG has focused on disciplined cost management, which has enabled the business to address the inflationary pressures seen across the economy.

“In F23 we broadened the scope of our group optimisation initiatives with the establishment of endeavourGO to deliver sustainable cost out initiatives for each of our businesses,” he said.

“A key initiative of endeavourGO, activity-based rostering is embedded in Dan Murphy’s and will be rolled out across BWS and Hotels in F24. Our goal is to optimise our team’s efforts and give them more time to engage with our customers. Through this and other initiatives, we have taken $90m of costs out across the Group since Demerger, including $60m in F23.

“Over the next three years we’re targeting a further $200m in savings.”

Donohue continued: “Investments in F23 have spanned omni-channel customer experiences, digital capabilities and strategic acquisitions to grow our network. We expanded our hotels’ network footprint by 10 in the period, renewed 46 hotels and opened our landmark redevelopment of the Brook Hotel in Brisbane, which has become one of our top performing food venues since reopening in May.

“We have also continued to innovate to meet rapidly evolving customer needs with the rollout of new store formats like ‘The Dan Murphy’s Cellar’ and the new BWS 4.0 concept, number plate recognition drive–thrus, direct to boot order facilities, app upgrades, and electronic shelf labels.”

Looking ahead Donohue said: “We expect customer demand to remain resilient. Our offering of affordable and accessible experiences, leading value and convenience and the widest range of products continues to resonate, putting our brands at the heart of Australia’s social moments.

“Importantly, our team of more than 30,000 people continues to serve their customers and communities with exceptional commitment, bringing to life our purpose of creating a more sociable future together.”

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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