Sluggish start to 2024 for Dan Murphy’s, BWS owner Endeavour Group

The owner of Dan Murphy’s and BWS has experienced a sluggish start to the year as consumers increasingly prioritise value and shift to cheaper drinks.

Endeavour Group — which also operates a network of hotels under the ALH banner — on Monday reported retail sales for its bottle shops hit $2.4 billion in the 13 weeks to the end of March, up 2.4 per cent FROM a year earlier. When taking into account the timing of New Year’s Day and Easter, sales were just up 0.9 per cent.

“After a slow start to the quarter in January, trading conditions improved slightly in February and March, but remained subdued relative to the first half,” Endeavour said in a statement.

“Customer trends towards value, convenience and discovery continue, with many customers shopping more selectively and prioritising value.

“The appetite for both convenience and discovery is evident in the pre-mixed category, which again had the highest sales growth in the quarter.”

Hotels sales for the third quarter grew 1.5 per cent to $487 million, or 1.7 per cent when taking into account the timing of Easter.

Total sales for the quarter for hit $2.9b, up 2.2 per cent, or one per cent on a normalised basis.

“Endeavour Group delivered a stable third quarter trading performance in a softer market, with both retail and hotels growing sales and our brand and customer metrics remaining strong,” chief executive Steve Donohue said.

“This reflects the strength of our diverse portfolio and the efforts of our 30,000 team members to deliver outstanding customer service and memorable experiences.”

Endeavour said market conditions have remained subdued to date in the fourth quarter and trading was broadly consistent with the third quarter in both the retail and hotels segments on a normalised basis

Endeavour shares are up 2.1 per cent at $5.34 in early trade on Monday.