Australia’s largest pub operator, Endeavour Group, has released strong results for the first half of FY2023 as its ALH hotels rebound.
H1 of FY23 for the ASX-listed Endeavour (ASX:EDG) saw increased sales of $6.5 billion, up 2.5 per cent on last year, and EBIT increase of 15.8 per cent, to $461 million. This generated basic earnings and dividend per share up 16.7 and 14.4 per cent (respectively) on the same period in FY22.
The company attributes much of the improvement to the return to full trade after the pandemic of the hotel operations. On a three-year comparative basis, hotel sales record 4.7 per cent cumulative annual growth rates, and retail 4.5 per cent. Additionally, December saw customers return to regular holiday and social activities.
“Our team has delivered strong results Group-wide, with a standout December from the first restriction-free festive season in three years,” said EDG MD and CEO, Steve Donohue.
“Our unique network of brands and partners put us at the heart of social occasions, particularly over the festive period.”
The hotels division has seen significant growth of the group’s order and pay at table system, and benefitted from tourism trends as it continues to broaden appeal.
“Domestic travel has returned to regional and coastal towns, with stores and hotels in these areas performing strongly.
“We continue to focus on meeting customer demand for drinks discovery: a strong new product pipeline and our extensive selection of premium and craft options has contributed to our overall earnings.”
Separately, the company has named Kate Beattie its new Chief Financial Officer (CFO), as the incumbent Shane Gannon steps back from executive roles.
Beattie has held finance leadership roles within Woolworths and Endeavour for the past five years, commencing as Woolworths’ retail drinks finance director, and Deputy CFO following Endeavour’s demerger from the parent company.
Prior to Endeavour Beattie spent 20 years in roles across retail, technology, banking and professional services in blue-chip ASX-listed and international companies such as CBA and Macquarie Bank.
“I would like to thank Shane for his leadership and wise counsel over the last two years, and I look forward to this new challenge,” offered Beattie.
Pivotal in steering a company with 30k employees across a portfolio of stores, hotels, wineries and specialty businesses, Gannon will finish at Endeavour Group in June.
“I would like to pay special tribute to Shane Gannon for the enormous contribution he has made to the company, bringing his wealth of experience during such a formative period, embedding best-in-class strategy, governance and fostering an exceptional culture,” says Donohue.
