Endeavour Group (EG) has published its results for the 2024 financial year with Managing Director and CEO, Steve Donohue saying they show the resilience of the groups brands and businesses.
The group delivered sales and earnings growth in both its retail and hotel segments in what EG described as “challenging trading conditions” and “a softening consumer environment”.
Donohue said: “With household budgets under pressure, value-conscious consumers continue to seek out Dan Murphyʼs for its well-known Lowest Liquor Price Guarantee, expert service and market-leading range.
“Our My Danʼs membership program has enhanced its range of member-exclusive discounts and personalised offers for its 5.4 million active members, delivering a strong 83 per cent scan rate, with members spending 80 per cent more per transaction than non-members.”
Overall EG saw group sales increase by 3.6 per cent on last year, up to $12.3bn, group EBIT increased by 3.1 per cent to $1.1bn, while group net profit after tax decreased by 3.2 per cent to $512m.
“Pinnacle Drinks continued to leverage customer insights to drive product innovation, with circa 400 new products launched during the year driving over 50 per cent of Pinnacleʼs growth. Using a capital light model, Pinnacle generated $1.8bn of retail sales, with over half coming from wine where growth was driven by the premium and luxury segments.
“In Hotels, optimised food and bar menus and upgrades to accommodation delivered sales and gross profit margin improvement. Gaming returned to growth in H2, supported by investment in new games. We made progress on our pipeline of targeted renewals, with renovated venues delivering an enhanced guest experience and improved performance.
“We remained focused on tight cost management in an inflationary environment, with our optimisation program endeavourGO achieving $100m in savings in the year. Our investments in enhancing our capability to drive efficiency across the business, including deploying AI and other technology, continue to contribute to both cost efficiency and GP margin expansion.”
EG reported that its underlying sales momentum in both its retail and hotels segments has improved slightly through the first seven weeks of FY25, with the group saying value-conscious consumers are attracted to by EG’s pricing.
Looking ahead, Donohue said: “With our brands and venues being Australiaʼs go-to destinations for social occasions and events, we look forward to key upcoming first half trading events such Fatherʼs Day, Cyber Week and the festive season, with our unrivalled value proposition, growing loyalty base and compelling consumer offer positioning us to perform well.
“We will continue to focus on tightly managing our costs as we execute our strategy scorecard commitments to deliver value for shareholders.ˮ