- Endeavour’s shares continued to trade weak on Thursday despite the overall market showing strength.
- The shares started to show weakness on Wednesday after the company announced the departure of the managing director of its hotels business.
- The stock was trading 2.14% lower at AU$6.85 (at 11:30 AM AEST).
Shares of Endeavour Group Ltd (ASX:EDV) continued to trade weak on Thursday despite the overall market showing strength after US shares ended mildly higher overnight.
The shares started to show weakness on Wednesday after the company announced the departure of the managing director of its hotels business. The weakness in the market also contributed to the cause.
The stock was trading 2.14% lower at AU$6.85 (at 11:30 AM AEST).
What sparked sell-off
The sell-off in formerly Woolworths-owned Endeavour shares started on Wednesday after the company’s ASX update informed about the departure of Bruce Mathieson Jr – managing director of the company’s hotels business.
Mr Mathieson Jr would step down from his role in December so as to pursue other interests, the company informed the exchange. It was in 2011, he was appointed as the CEO of Endeavour’s ALH Group division in 2011.
“Bruce has been instrumental in leading the Hotels business through a significant period, which has included the successful completion of the merger of ALH Group with Endeavour Drinks to create Endeavour Group in July 2019, the demerger of Endeavour Group and Woolworths in June of this year and navigating the impacts of the COVID-19 pandemic,” said chief executive Steve Donohue.
“Bruce’s expertise and unwavering commitment has been of immense value to Endeavour Group, and he leaves the Hotel business in a strong position as it enters the next exciting phase of growth,” he added.
The company said that it would start a recruitment process to find a suitable replacement for Mr Mathieson.
Endeavour performance in FY21
Endeavour recently released its full-year results for FY21. The firm reported a 9.3% rise in group sales to AU$11.6 billion.
- Group earnings before interest and tax (EBIT) rose 22.1% to AU$899 million
- Group net profit after tax (NPAT) recorded at AU$445 million
- Final dividend of 7 cents per share
Endeavour’s share price
After its demerger from Woolworths Group Ltd (ASX:WOW), Endeavour has become a separately listed entity.
The Endeavour share price has rocketed over 4,450% year-to-date. The shares recorded 52-week high of AU$7.50 in mid-August. The stock price is down over 7% at current levels.
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