Endeavour Group, the owner of Dan Murphy’s and a large portfolio of hotels, has reported a double-digit fall in full-year 2024 profit. The company cited lower alcohol sales and significant costs associated with restructuring and its separation from Woolworths as primary factors. Endeavour operates as a retail drinks and hospitality business, managing popular brands such as Dan Murphy’s and BWS, alongside a network of hotels and licensed venues across Australia.
Group revenue saw a decrease of 2 per cent to $12.06 billion for the 53 weeks ending June 29, slightly below consensus estimates of $12.08 billion. Factoring in the extra week of trade in the previous year, sales experienced a 0.3 per cent decline. The shift in consumer demand for beer, wine, and spirits, influenced by health and wellness trends as well as broader economic conditions, played a significant role in this revenue downturn.
Revenue from Endeavour’s bottle shops decreased by 1.2 per cent to $10 billion, reflecting reduced consumer spending and the impact of lower stock levels during the Christmas peak. This was partially offset by a 4.1 per cent increase in revenue at its hotels, reaching $2.1 billion, driven by growth across food, bars, gaming, and accommodation. The group also incurred a $16 million restructuring bill, encompassing costs related to the closure of the Prowine bottling facility, staff redundancies, and One Endeavour initiatives. Net profit after tax fell by 17 per cent to $426 million, also below market expectations of $431.4 million.
The board has declared a fully franked final dividend of 6.3¢ per share, scheduled for payment on October 14. A dividend reinvestment plan will be activated for the 2024 final dividend. In the first seven weeks of the new financial year, Endeavour noted that the retail liquor market remains subdued, with sales at Dan Murphy’s and BWS down 1.3 per cent, while hotel sales increased by 4.4 per cent.
