Endeavour Group witnessed its revenue decline in the fiscal third quarter amid lower retail sales attributed to subdued trading.
The group’s sales fell 1.7 per cent year over year to $2.84 billion, with timing of key holidays also affecting the results.
During the period, Endeavour’s retail sales from BWS and Dan Murphy’s dipped 3.1 per cent to $2.33 billion .
This is despite both liquor stores posting 6.7 per cent online sales growth, benefitting from rise in sales through ultra-convenience partners and higher online sales in Dan Murphy’s.
Meanwhile, hotel sales increased 5.1 per cent to $512 million, thanks to the segment’s strong performance across key events including Australia Day, St Patrick’s Day, Valentines Day, and the Footy season kick-off.
Gaming also remained resilient, with Victoria and Queensland displaying the strongest growth.
Endeavour ended the quarter with 1,722 retail stores and 354 hotels.
Moving forward, the company anticipates retail market conditions to gradually improve as inflation moderates, and the prospects for interest rate cuts increase.
Endeavour said it is targeting flat to modest retail sales growth and mid single-digit hotel sales growth in the balance of the fourth quarter, however noting that cost inflation will remain a headwind for both segments in the remainder of the second half.
“Our priorities for the remainder of FY25 are to drive sales momentum in our Retail business through price and value leadership and to progress the optimisation of our Hotels portfolio while retaining our capital discipline,” said Ari Mervis, executive chairman at Endeavour Group.
“In line with the group’s strategy to focus and simplify the business, we will continue to pursue opportunities to optimise our assets and cost base to ensure we deliver appropriate returns for shareholders.”
Earlier, Endeavour said it appointed Jayne Hrdlicka as its new MD and CEO, effective January 1, 2026, pending receipts of necessary regulatory approvals.