Endeavour Group reported overall sales growth of 2.1% for the first quarter of FY24 (14 weeks ending October 1, 2023). Total revenue reached $3.09 billion, with the retail arm accounting for $2.54 billion, and hotels revenue increasing to $553 million.
Endeavour Group Managing Director and CEO, Steve Donohue, said: “The Group has continued to demonstrate solid trading across the quarter, with our brands and offers resonating strongly with customers.”
Retail performance
Retail sales in the quarter remained strong at $2.5 billion, an increase of 1.9% on the previous year. BWS and Dan Murphy’s combined grew by 2.6% in the quarter.
After a strong start to the quarter, sales growth moderated somewhat in August, with a softening in demand for Father’s Day gifts. Momentum trended up again through the last two weeks in September, and this has continued into the second quarter.
Donohue said: “Dan Murphy’s remains the destination of choice for customers seeking the lowest prices, widest range and expert service. This is highlighted by the year-on-year uplift in its Voice of Customer score, which was up two points to 81 in the quarter. BWS continues to deliver both convenience and value to customers, maintaining a steady Voice of
Customer score of 74 points.”
In the quarter, 8.7% of total Retail sales were generated through Endeavour’s e-commerce channels, representing sales of $221 million. Dan Murphy’s saw double digit online sales growth driven by the convenience of pick-up at store, which comprised a record 70% of Dan Murphy’s online orders placed in the quarter.
By contrast, Jimmy Brings sales were in decline as the company recalibrated its cost base and investment levels within this business, in response to channel consolidation in this space.
Hotels performance
Hotels sales in the first quarter increased by 2.8% to $553 million. Weekly sales throughout the quarter remained relatively stable, with year-on-year growth in Bars, Food and Accommodation, partly offset by a low single digit decline in Gaming. Sales momentum has remained steady heading into the second quarter.
“Australians continue to seek out local, quality social experiences in hotels, which offer outstanding value for money. We were pleased to have improved our customer satisfaction scores which reached record levels in the quarter,” said Donohue.
“Key trading events such as Father’s Day, the FIFA Women’s World Cup and Footy Finals supported this strong performance,” he added.