Endeavour Group has delivered its FY26 first quarter trading update, which shows a slight decline in retail sales, with sales across Dan Murphy’s and BWS down one per cent on the prior corresponding period (pcp), while sales growth in hotels continued, up 4.4 per cent on the pcp.
Combined Dan Murphy’s and BWS sales were $2.4bn, with the group reporting that on a comparable store basis, sales for Dan Murphy’s and BWS were down 1.3 per cent versus pcp. Total Retail sales were $2.5bn for the quarter, down 1.4 per cent on the pcp. This includes the impact of lower specialty sales following the integration of Shortyʼs operations into Dan Murphy’s, and the transition of Jimmy Brings to a partnership model with Milkrun in FY25.
Endeavour reported that while retail sales started the quarter softly, the group saw sales momentum improve in September, with a trade plan carried out around holidays and footy finals, as well as targeted offers, bringing combined Dan Murphy’s and BWS sales back into growth.
Endeavour Group CEO Kate Beattie said: “Following a soft start to F26, our Retail sales trajectory improved over Q1, with positive sales growth in September. Targeted and well-executed promotions during the September school holidays and footy finals delivered strong sales however consumer spending was relatively subdued outside of key events.
“We have continued to strengthen our competitive position by reinforcing our best-in-market everyday low pricing on the key brands and products our customers value most, complemented by value-focused promotions and underpinned by Dan Murphyʼs lowest liquor price guarantee. Promotional intensity across the retail liquor market remained elevated throughout Q1, particularly in the online channel where our sales grew by 20.9 per cent.”
In the hotels business, total sales were $592m, up 4.4 per cent on the pcp, with continued growth across all key drivers and strong performance during key events including the British and Irish Lions series, Fatherʼs Day and footy finals. On a comparable hotel basis, sales were up 3.6 per cent versus pcp.
The group reported that its gaming segment remains resilient, with key markets of Victoria and Queensland delivering the strongest growth. Quarter one saw around 250 new EGMs installed, in addition to the circa 900 EGMs installed in the second half of FY25, which helped overall gaming performance.
Beattie said: “Our Hotels business continues to perform well, with growth across all four key drivers: Food, Bars, Gaming, and Accommodation. Hotel renewals, localised Food and Bars menus, new EGMs and our expanded Nightcap accommodation offering all contributed to this positive trading result.
“Enhanced experiences for our hotel guests were reflected in higher customer satisfaction scores. Our guests are also continuing to embrace the benefits of our pub+ loyalty program which now has over 560,000 active members and accounts for almost 30 per cent of Food and Bars transactions in our Hotels.”
Looking ahead, Endeavour said the positive retail sales growth seen in September has continued in October, with promotional intensity across the retail liquor market expected to remain elevated through the second half of the year.
Hotels have also made a positive start to the second quarter, although sales growth is modestly below the first quarter, which the group said is driven by beer pricing and event timing. Endeavour also said that inflationary pressure on wages and elevated security costs, combined with increased depreciation and amortisation, remain a headwind to earnings growth in the half.
Beattie added: “Looking ahead, the second quarter remains a key trading period for the Group, with marquee events including Spring Racing, The Ashes Series, Christmas festivities, New Year and the start of summer holidays.
“In Retail, weʼre focused on strengthening our market-leading position for value, range, service and convenience, capitalising on the increased number of occasions to socialise and celebrate.
“In Hotels, we will continue to focus on improving guest experience, through both capital and operational investments across our network, and on enhancing the benefits for members of our pub+ loyalty program to deepen customer engagement.
“Our 30,000+ team members are energised and ready to deliver great value products and outstanding experiences to our customers and guests as they gather with friends and family to socialise and enjoy the festive season.
“Finally, we are making good progress on our Group-wide strategy review, which will establish the framework for creating value for all our stakeholders and delivering sustainable returns for shareholders over the medium to long term.”