Get all your news in one place.
100’s of premium titles.
One app.
Start reading
AAP
AAP
Derek Rose

Higher interest rates hit on Endeavour Group's profit

Endeavour Group attributed its profit drop to increased costs on its nearly $2 billion in net debt. (Dan Himbrechts/AAP PHOTOS)

Australia's biggest alcohol retailer says sales were up but profit was down in 2023/24, as higher interest rates took their toll.

Dan Murphy's and BWS bottle shop and pub owner Endeavour Group said sales were up 3.6 per cent to $12.3 billion in the 53 weeks to June 30,  while profit dropped 3.2 per cent to $512 million.

Adjusting for the fact that Endeavour Group's 2023/24 financial year had one additional week than the previous one, sales were up 1.8 per cent while profit was down 4.3 per cent.

Endeavour Group attributed the drop in profit to increased finance costs on its nearly $2 billion in net debt.

It paid $306 million in finance costs in 2023/24, up from $250 million the previous year.

The group ended the financial year with $1.872 billion in net debt, down $55 million from the start of the financial year. Its leverage ratio stood at 3.5 times the top end of target.

Endeavour Group managing director and chief executive Steve Donohue said the group's financial results demonstrated the resilience of its brands and businesses in response to challenging trading conditions.

Endeavour Group saw $2.1 billion in sales at its 354 hotels and clubs around the country, up 2.3 per cent from 2022/23 on a 52-week basis, while retail sales were up 1.7 per cent to $10.2 billion.

BWS and Dan Murphy's saw same-store sales growth of 1.1 per cent, the company said.

Endeavour Group announced a 21.8 cent per share dividend, in line with the previous year.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.