Endeavour Group has revealed its retail sales for the third quarter of FY24 were $2.4 billion, up 2.4% on the corresponding period last year.

On a comparable store basis, sales for BWS and Dan Murphy’s were flat compared to the same period last year.

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.

The company said customers were shopping more selectively and prioritising value.

Appetite for “convenience and discovery” was evident in the pre-mixed category, which again had the highest sales growth in the quarter.

Hotels sales for the third quarter increased by 1.5% to $487 million, or 1.7% when taking into account the timing of
Easter, with all drivers in growth.

Accommodation demand was supported by touring events from major international artists including Taylor Swift. Gaming returned to modest growth in the quarter, although revenue in Victoria continues to be impacted by the company’s early adoption of the Victorian government’s planned changes to trading hours ahead of the wider market. Comparable hotel sales grew by 1.5% for the quarter.

Endeavour Group Managing Director and CEO Steve Donohue said: “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.

“Our unparalleled value proposition continues to make Dan Murphy’s Australia’s leading destination for drinks, once again being named Liquor Store of the Year in Roy Morgan’s Annual Customer Satisfaction Awards.

“Our hotels continue to show their resilience in challenging economic conditions, with all drivers in growth during the
quarter. Our localised food and beverage offer continues to resonate strongly with customers looking to enjoy affordable social experiences with family and friends.”

Endeavour Group said market conditions have remained subdued to date in Q4 and trading is broadly consistent with Q3 in both the retail and hotels segments on a normalised basis. It said it continued to experience inflationary cost pressures.