Endeavour loses 2.5% on quarterly update ahead of AGM

The news: Shares in Dan Murphy's owner Endeavour have slid 2.5%, after the company posted modest sales gains in its first quarter update.

The numbers: Endeavour group sales lifted 2.1% compared to 1Q2022, on the back of a 1.9% increase in retail sales and a 2.8% boost to hotels income. Dan Murphy's and BWS drove retail sales, lifting 2.6%, while hotel revenue was buoyed by the "Matildas effect", which saw 1.2 kegs of beer per minute sold across Endeavour's 354 pubs during the women's World Cup semi-final and final events, the group said. The results failed to wow investors, with EDV shares dropping 2.5% by 11:50am AEDT to $4.895.

The context: Endeavour will host its AGM tomorrow, featuring a much-anticipated vote to shake up the group's board, which is expected to fail, the Australian Financial Review reports. Billionaire pub baron and 15.1% Endeavour shareholder Bruce Mathieson has been campaigning for the election of former Myer boss Bill Wavish to join the group's board, but has struggled to convince institutional investors and proxy advisors. Endeavour shares are down 25.1% in 2023, and roughly 41.9% from their August 2022 peak.