Endeavour Group has released its Q1 trading figures for FY23, reporting “accelerated” sales in its fleet of pubs and growth in retail, compared with pre-COVID levels.
Australia’s largest pub operator and liquor retailer, the ASX-listed Endeavour Group (ASX:EDG), detailed group sales for the quarter of $3.028 billion, which is 3.1pc higher than FY22.
Sales for the quarter through its hotels division, ALH, amounted to $538 million – up a whopping 90.8pc on the prior year. COVID-19 lockdowns in New South Wales and Victoria meant 40pc of EDG hotels were temporarily closed in the comparative period for FY22.
Compared with Q1 pre-COVID (FY20), Hotels sales were up 15.0pc, representing a 4.8pc three-year compound annual growth rate (CAGR).
“Our hotels are thriving, as Australians embrace both large and small social occasions after years of COVID-19 disruption,” states Endeavour Group MD and CEO, Steve Donohue.
“There has been a rebound across all hospitality categories, with Bars, Food, Gaming and Accommodation all performing strongly.
“Live entertainment is also becoming a feature of our business again, with music fans enjoying a range of sold out gigs across our hotels.”
EDG investment in its hotels network continued, finding 14 lease renewals and three new pubs into the portfolio, being the Leichhardt Hotel in Cloncurry (Qld), the Emu Hotel in Morphett Vale (SA) and the Tandara Hotel in Sarina (Qld).
This brings EDG’s collection to a total of 347 venues, including five managed clubs in Victoria.
The group’s retail liquor sales for the first quarter were $2.49 billion, down 6.2pc compared to Q1 last year, but up 13.9pc compared to Q1 FY20, representing 4.4pc CAGR.
The fall against FY22 relates to the 50.3pc growth in online sales compared to pre COVID-19 levels.
This quarter saw EDG renew five Dan Murphy’s stores and 27 BWS stores, while also adding one new Dan Murphy’s store and a net seven new BWS stores.