Endeavour has posted what it describes as a “solid” performance for the quarter, seeing stability across pubs and retail, and continued investment in the pursuit of patronage.
The ASX-listed Endeavour (EDG) released its FY23 Q3 financials in the past week, noting that both its revenue segments were in growth.
“Australians love socialising and our network of brands are a go-to for consumers, whether they are enjoying a great value meal at one of our hotels, or taking advantage of the best prices on a great range of drinks,” said Group MD and CEO Steve Donohue in the release.
”In Hotels, food, bars and accommodation have all continued to be materially above the prior year, in which COVID-19 impacted both customer demand and team availability levels.”
EDG describes trading conditions as having remained generally consistent, recording an increase in sales in ALH hotels for the quarter of 18.5 per cent to $480 million, strongest in the first five weeks of the year.
Gaming continued to normalise from the elevated levels seen in the second half of FY22, returning to pre-pandemic share of turnover.
ALH reportedly hosted more than 100 live events during the period, attracting over 38k patrons to the ticketed events.
The group acquired five new hotels during the quarter, making 10 for the year to date. The latest welcomed were The Tower Hotel (Magill, SA), Beach Hotel (Seaford, SA), The Marine Hotel (Cardwell, QLD), Beachfront Hotel (Rapid Creek, NT) and Rainbow Beach Hotel (Rainbow Beach, QLD).
This brings the portfolio to a total of 353 hotels, including five managed clubs.
EDG predicts capital expenditure for the full year to be $470-$520 million, which counts a higher level of hotel acquisitions relative to prior years.
“As we look ahead we continue to closely monitor customer choices in the context of the macroeconomic climate. We remain confident that we offer a great breadth of options and value for all social occasions and we will continue to tailor our offering as the environment requires.”
Investment has recently come to include the installation of 350 solar panels atop the Jamison Hotel and the Pioneer Tavern, and Dan Murphy’s store, in Penrith. The 100-kilowatt systems will have capacity to power up to 30 per cent of energy requirements.
EDG has earmarked $4 million for solar projects on ALH venues nationally. It already has panels installed at 31 hotels, with plans to have 60 hotels solar activated by the end of the financial year, and greater goal to be using 100 per cent renewable electricity by 2030.
Following the release of the Federal budget yesterday, ALH has announced a partnership with Lion to help Aussies already “tightening their belts” with their Shout A Mate offer.
Recognising the rise in the cost of living and the focus of Australians on their wallets, ALH are offering two for the price of one on selected Lion beers, across all ALH venues in eligible States. The offer is limited to one redemption per person, and will not be available in the Northern Territory and Queensland.
Patrons must register at ALH’s website and show their notification to staff behind the bar.
“We know that people are returning to the pubs in good numbers and that is something we welcome,” explained ALH interim MD Paul Walton.
“This is a way we can still reward those loyal customers and support them the same way they have supported us.”
