Solar panels being installed at Dan Murphy's Penrith

Endeavour Group has delivered its results for the third quarter of the 2023 financial year, with stability reported across the retail and hotel channels.

Overall group sales for the 13 weeks of the quarter were up 3.7 per cent on the prior corresponding period, with the hotel channel up 18.5 per cent and the retail channel up 1.2 per cent.

Steve Donohue, Endeavour Group Managing Director and CEO, said it was pleasing to see the Group deliver solid sales results across both sectors, with stable trading conditions in the portfolio compared to the prior COVID-19 impacted year.

“Australians love socialising and our network of brands are a go-to for consumers, whether they are enjoying a great value meal at one of our hotels, or taking advantage of the best prices on a great range of drinks,” he said.

In the retail sector, sales remained strong at $2.4 billion. In-store sales drove this, growing by 2.8 per cent in the quarter. The omnichannel offering was also incredibly important, with 53 per cent of online sales in the period utilising in-store pick up options.

Endeavour Group noted that promotional activity in the market remains elevated, particularly in the online channel, where the group is focused on maintaining profitable sales as the market normalises. Online sales remain lower than the prior elevated year, but weekly sales were reported to be relatively stable.

When it comes to the stores themselves, Donohue said: “Customer sentiment remained strong. Notably, our My Dan’s membership program has continued to grow, reaching a significant milestone in the quarter with over five million active members. This reflects the popularity of the Dan Murphy’s offer and our famous Lowest Liquor Price Guarantee.

“In BWS, customers continue to embrace our local and convenient offering, reflected in an increase in transactions in the quarter. This was supported by another successful App Cooler promotion across January and February.”

Endeavour Group continued to invest in expanding and enhancing its network of stores this quarter too. The company has looked to improve its web and app platforms while continuing the roll out of Electronic Shelf Labels, which are now in 100 stores.

Endeavour Group had 1,701 stores at the end of the quarter, after opening two new Dan Murphy’s stores and six new BWS stores, and closing three BWS stores during the period. Seven Dan Murphy’s store renewals and 16 BWS store refreshes were completed, as well as 19 BWS upgrades (lighter touch improvements).

Meanwhile, hotel sales for the quarter reached $480 million, with strong growth of 31.5 per cent in the first five weeks followed by a growth rate of 11.5 per cent in the final eight weeks. Weekly sales were relatively stable however comparatives to last year are distorted as the company cycles an unusual trading period.

“In Hotels, food, bars and accommodation have all continued to be materially above the prior year in which COVID-19 impacted both customer demand and team availability levels. This was supported by over 100 live events held across the quarter, with ticketed events attracting over 38,000 patrons. Gaming has returned to pre-pandemic share of turnover, with low single-digit growth in the quarter,” said Donohue.

“During the quarter, Endeavour welcomed five new hotels, adding 16 bars, five bistros, seven accommodation rooms and 112 Electronic Gaming Machines to the portfolio. We also continued to make good progress on the redevelopment of the Brook Hotel in Queensland which will employ approximately 90 new team members, including 40 accommodation rooms and a new Dan Murphy’s which opened as Stage 1 of the development in February.”

Endeavour Group ended the quarter with 353 hotels in total, including five managed clubs.

From the Pinnacle Drinks side, Endeavour Group said continual investments hve brought great results, helping the company to meet changing customer preferences by offering exceptional value at all price points and providing capability to partner with suppliers to develop new products across categories. This includes the Oakridge Winery in the Yarra Valley, and the Cape Mentelle Winery in WA, which was acquired by Endeavour Group in this quarter.

Powering up the solar rollout

As well as these results, Endeavour Group has also announced the expansion of its solar power network, with 350 solar panels installed in western Sydney.

The panels were installed in the suburb of Penrith, on a Dan Murphy’s store, the Jamison Hotel and the Pioneer Tavern. The 100 kilowatt systems will have the capacity to power up to 30 per cent of the venue and store’s energy requirements.

Tyson Holbery, Head of Format Operations, said: “We are really excited to add these venues to our solar-activated sites, demonstrating our continued progress towards our sustainability targets.

“We are making a good investment in this rollout, leading through innovation and technology. There is about $1 million earmarked for solar projects for Dan Murphy’s stores and about $4 million across ALH venues nationally, totalling around $5 million over the next financial year.”

Currently there are 58 Dan Murphy’s stores equipped with solar panels, with plans to increase to 150 stores. On the venue front, 31 ALH hotels currently have solar panels installed, with plans for 60 hotels to be solar activated by the end of the financial year.

Across the country so far, Dan Murphy’s solar installations have reportedly generated more than 12,807,031 kilowatts of energy, while solar panels at ALH hotels have generated more than 8,015,600 kilowatts of energy. Endeavour Group said that this power generated has reduced carbon emissions equivalent to 16,000 tonnes (equivalent to 763,000 trees).

The increasing rollout of solar panels is part of the company’s strategy to actively reduce its carbon footprint and achieve its goal of 100 per cent renewable electricity by 2030.

Brydie Allen

Brydie Allen is the Editor of National Liquor News. She has been with Food and Beverage Media since 2019, when she joined the company as a journalist across National Liquor News, Bars & Clubs, The...

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