Endeavour Group shares dip on Woolworths strike impact
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More news: Shares in Endeavour Group are down 1.6% to $4.20 in early trading on the ASX after the drinks group flagged a hit to its sales from the recent strike at Woolworths distribution centres in Victoria and NSW.
It has estimated an adverse impact of $25 million on its sales so far, but says the full financial impact is uncertain at this point as sales continue to be impacted while stores are being replenished.
Endeavour flags $25m hit from Woolworths strike
The news: Drinks group Endeavour has flagged a hit to its sales as the drawn out strike at Woolworths distribution centres led to stock shortages at its stores.
The numbers: The group has estimated an adverse impact of $25 million on its sales so far. While the Woolworths strike has ended, sales will continue to be impacted while stores are replenished, it said late on Tuesday, adding that the full financial impact is uncertain at this point.
Endeavour last month downgraded its retail operating EBIT margin for the first half to between 7% and 7.5%, down from its previous 8% estimate, amid lower consumer spending.
The context: Endeavour, which was spun off from Woolworths before listing on the ASX in 2021, said the supermarket continues to provide warehouse services to the group including at two distribution centres in Victoria.
Industrial action in relation to the enterprise agreements at its distribution centres in Victoria and NSW led Woolworths to flag a $50 million hit on sales, although the dispute has now been resolved.
Endeavour is Australia’s biggest alcoholic drinks retailer and operates both Dan Murphy's and BWS retail store chains as well as the country's largest portfolio of pubs and hotels. It was formed in 2018 through the amalgamation of ALH Hotels Group and Endeavour Drinks.
The source: ASX announcement
