Australian drinks and hospitality business Endeavour Group says both retail and hotel segments demonstrated “stability” despite macroeconomic conditions during FY23.
For the 52 weeks to June 25, the group registered $11.9 billion in sales, up 2.5 per cent, while tax-paid profit was $529 million, up 6.9 per cent, and EBIT reached $1 billion.
The retail segment achieved $9.9 billion in sales, down 1.8 per cent, with EBITDA of $954 million and online sales of $851 million, down 15.3 per cent.
During this period, the group opened 18 new BWS stores and eight Dan Murphy’s stores. The retailer also acquired WA’s Cape Mentelle in May and Shingleback Wine in August last year – expanding its Paragon Wine Estates portfolio.
Meanwhile, the hotel segment recorded $2 billion in sales, up 31 per cent, supported by the relaxation of pandemic-related trading restrictions.
The business added 11 new hotels including four in SA, six in Queensland and one in NT and returned The Victory Hotel, Queensland to its landlord – bringing the net number of new hotels to 10 for the year. The group currently operates a total of 354 hotels and five managed clubs.
Endeavour Group MD and CEO, Steve Donohue, said: “In FY23, Endeavour Group has delivered a strong financial result underpinned by the strength of our retail brands, portfolio of hotels and team capabilities.”
For the first six weeks of the new financial year, the group says trading has been resilient although the business is not immune to the shifts in consumer sentiment and economic conditions.
“In FY24, we will continue to work hard to meet the needs of every customer. We are strategically investing in our business, to enhance capabilities and improve efficiency in order to continue to deliver for our shareholders in F24 and beyond,” said the group.
It also plans to launch a new customer loyalty program in the coming year, aiming to “enrich” the digital guest experience by integrating in-venue and digital touchpoints.
