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Highlights:
- On Tuesday, Endeavour Group Limited (ASX:EDV) released its 3Q FY23 trading update.
- EDV’s retail segment delivered AU$2,350 million, up 1.2% on pcp in the third quarter.
- The group’s Oakridge Winery in the Yarra Valley was of late bestowed with the 2023 Winery of the Year by The Real Review.
The Australian alcoholic drinks retailer, hotel, and poker machine operator Endeavour Group Limited (ASX: EDV) decreased by 2.584% and was trading at AU$6.595 on Tuesday, 2 May 2023, at 11:45 am AEST after it provided its 3Q FY23 trading update.
Let’s dig in further and look at the key takeaways of the EDV’s 3Q FY23 results.
During 3Q FY23, sales for the 13-week (2 January-2 April 2023) in EDV’s retail segment delivered AU$2,350 million, up 1.2% on pcp. The retail sales returned to growth in December. It has kept on tracking ahead of the previous year over the third quarter. It was driven by in-store shopping by consumers, increasing sales by 2.8% in the quarter.
The hotels’ segment generated AU$480 million, reflecting an 18.5% increase on pcp. In hotels, food, bars, and accommodation have all continued to be materially above the previous year, in which COVID-19 affected consumer demand and team availability levels. Gaming has also gone back to a pre-pandemic share of turnover, with a low single-digit rise in the quarterly period.
In the reported period, EDV welcomed five new hotels, which added sixteen bars, seven accommodation rooms, along with 112 gaming machines to its portfolio. The group has also made good progress on the redevelopment of the Queensland-based Brook Hotel. It will employ ninety new team members and consist of forty accommodation rooms and a new Dan Murphy’s, which opened as Stage 1 of the development in February.
In the Q3 period, the group opened two Dan Murphy’s stores, six BWS stores and shut down three BWS stores, ending the quarter period with 1,701 stores. EDV continues to enhance its store formats with seven renewals concluded in Dan Murphy’s and sixteen in BWS. Further, the group concluded 19 BWS upgrades, a program of lighter touch improvements.
Further, in its premium Paragon Wine Estates portfolio, the company had acquired the iconic Cape Mentelle winery in Margaret River. During the Q3 period, consumer sentiment stayed robust as Dan’s membership program continued to progress, with more than five million active members. In BWS, consumers welcomed the group’s local and convenient offering, which showed a rise in transactions.
EDV’s Oakridge Winery in the Yarra Valley was of late bestowed with 2023 Winery of the Year by The Real Review, which is a testament to the hard work of the group’s Pinnacle team and the quality of its winery assets.
