Endeavour Q3: Retail Sales Down 3.1%, Hotels Up 5.1%, CEO Change Announced

Mixed Q3 Performance Amid Seasonal Timing Effects

Endeavour Group’s third quarter fiscal 2025 trading update reveals a tale of two segments. Retail sales fell 3.1% year-on-year to $2.33 billion, reflecting subdued consumer demand and the impact of Easter shifting from Q3 in the prior year to Q4 in the current period. On a comparable store basis, Dan Murphy’s and BWS sales declined 3.7%, underscoring ongoing headwinds in off-premise liquor retailing.

Conversely, the Hotels division demonstrated robust momentum, with sales rising 5.1% to $512 million. Growth was broad-based across food, bars, gaming, and accommodation, supported by key events such as Australia Day and the start of the footy season. Comparable hotel sales increased 4.3%, highlighting resilience in on-premise hospitality despite broader economic caution.

Strategic Leadership and Operational Highlights

The Group announced the appointment of Jayne Hrdlicka as Managing Director and CEO, effective 1 January 2026. Hrdlicka’s extensive leadership experience is expected to guide Endeavour through its next growth phase. Meanwhile, the current management continues to focus on driving sales momentum and optimising the Hotels portfolio.

Customer engagement metrics showed improvement, with My Dan’s membership growing to 5.5 million and pub+ app users surpassing 540,000. Dan Murphy’s maintained its market-leading Voice of Customer score, and online sales for Dan Murphy’s and BWS grew 6.7% in Q3, reflecting a strategic push into digital channels and partnerships such as the upcoming Uber Eats collaboration.

Capital Discipline and Portfolio Optimisation

Capital expenditure guidance remains steady between $375 million and $425 million for fiscal 2025, including the One Endeavour program. Finance costs are expected within the $305 million to $315 million range. The Group is advancing its property strategy with three hotel renewals completed and development applications lodged for The Morrison Hotel in Queensland, with further applications planned for New South Wales and Victoria.

Notably, Endeavour is closing its Prowine bottling facility in South Australia, anticipating a pre-tax impairment of up to $15 million, mostly non-cash, to be recognised in the full-year results. This move aligns with the Group’s focus on simplifying operations and optimising asset returns.

Outlook: Cautious Optimism Amid Inflationary Pressures

Looking ahead, Endeavour expects retail market conditions to gradually improve as inflation moderates and interest rate cuts become more likely. The Group targets flat to modest retail sales growth in Q4, cycling a slight decline in comparable store sales from the prior year. Hotels are forecast to deliver mid-single-digit sales growth, supported by ongoing strength in gaming and food and beverage.

Cost inflation remains a headwind for both segments, but the Group’s disciplined capital management and strategic initiatives aim to sustain shareholder returns. The refinancing of a $1 billion debt facility due in June 2026 is also on track, providing financial flexibility for future growth.