Endeavour shares lift on third-quarter sales boost
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More news: Shares in Endeavour Group climbed at market open after the drinks company posted an increase in sales during the third quarter.
Shares were up 1.7% to $5.32 by 10:30am AEST.
What they said: E&P Capital analysts said that retail sales were below their expectations but broadly in-line with consensus forecasts. Meanwhile, hotels were slightly ahead of their expectations.
The analysts noted that Endeavour's sales growth rates accelerated for both retail and hotels divisions during the quarter, and called it a "good 3Q24 sales result" overall.
Endeavour lifts sales despite 'subdued' market conditions
The news: Dan Murphy's and BWS owner Endeavour Group reported a rise in hotel and retail sales during the third quarter, despite softer market conditions with customers prioritising value purchases.
The numbers: Group sales totalled $2.9 billion for the third quarter, up 2.2% compared to the prior corresponding period, or 1% on a normalised basis.
Retail sales grew 2.4% year on year to $2.4 billion, while hotel sales lifted 1.5% to $487 million.
Dan Murphy's membership program added over 175,000 new members during the quarter and drove an 8.4% rise in Endeavour's online retail sales.
The group said it ended the quarter with a collective 1,717 stores for Dan Murphy's and BWS, and expected to add around 10 net new stores in Q4.
Endeavour also reaffirmed its full-year capital expenditure guidance of between $420 million and $480 million, with the timing of hotel acquisitions as the most significant variable.
The context: Endeavour said that softer trading conditions in the third quarter saw customers opt for value, convenience and discovery, with many customers shopping more selectively and prioritising value.
The pubs, liquor stores and hotels operator noted that market conditions "remained subdued" heading into the fourth quarter, with inflationary cost pressures being managed by progressing optimisation initiatives under the company's "endeavourGO" program.
Last week, Woolworths announced it had agreed to sell a 5% stake in Endeavour for $468 million.
What they said: Endeavour's managing director and CEO Steve Donohue said: "Endeavour Group delivered a stable third quarter trading performance in a softer market, with both retail and hotels growing sales and our brand and customer metrics remaining strong".
The source: ASX announcement
