Endeavour Group seeks to reassure shareholders amid tough conditions

Summarised from 2 outlets · Updated 30 Oct, 02:09 · Archive

Australia's biggest liquor and hotels business, owner of Dan Murphy's and BWS, has missed forecasts as declining alcohol consumption weighs on results.

Endeavour Group, Australia's largest liquor and hotels business, has sought to reassure investors despite continued challenges. The company, which owns Dan Murphy's and BWS liquor chains along with a portfolio of pubs and hotels, grew total sales by 2.8 per cent in the 14 weeks from 1 July to $3.18 billion. However, the result missed forecasts and compounds difficulties for shareholders, whose investment has lost more than 60 per cent of its value since August 2022.

Decreasing alcohol consumption is weighing on the business. Retail sales improved by three per cent, outpacing the broader market, but growth failed to keep pace with inflation. Hotel revenue growth moderated as high living costs and fuel prices affected Australian spending.

Chief executive Jayne Hrdlicka, in her first shareholder meeting since taking the helm, announced a $300 million cost-saving plan in May that includes offloading wineries and streamlining hotel operations. The company subsequently slashed its shareholder dividend. Chair Duncan Makeig acknowledged at the annual meeting in Sydney that performance and share price had not met expectations since the company listed on the ASX five years ago. Most shareholders took comfort in Hrdlicka's leadership, though some expressed concern about income falling relative to executive remuneration.

How it is being reported

• Liquor giant soothes shareholders in tough marketThe owner of liquor chains Dan Murphy's and BWS continues to disappoint shareholders, but its leaders are confident they can turn its fortunes around.Perth Now · 30 Oct, 01:48
• Dan Murphy’s owner Endeavour Group soothes shareholders in tough marketThe owner of liquor chains Dan Murphy's and BWS continues to disappoint shareholders, but its leaders are confident they can turn its fortunes around.The West Australian · 30 Oct, 01:47

In this story: Endeavour Group · Dan Murphy's · BWS · Jayne Hrdlicka · Duncan Makeig · Virgin Australia · Sydney · Australia

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