Alcohol sales at liquor retailer Endeavour Group rose below expectations as shoppers switch to cheaper drinks amid rising cost-of-living pressure.
The company, which owns BWS, Dan Murphy's and licensed venues across Australia, posted a 2.1 per cent lift in sales revenue from June 26 to October 1 compared to the same period last year.
A 1.9 per cent increase in retail sales was driven by new products and comes despite a 1.2 per cent rise in inflation in the September quarter.
"Customers are searching for value and discovery, which is reflected in shifting category trends, including higher demand for mainstream beer, rosé and pre-mixed drinks," group chief executive Steve Donohue said on Monday.
Meanwhile, the national fervour surrounding the Matildas' enrapturing World Cup run helped lift sales 2.8 per cent at the group's 344 hotels, despite a drop in gaming revenue.
"The 'Matildas Effect' saw 1.2 kegs of beer sold every minute in our hotels during the semi-finals and final in August, and we welcomed a record 65,000-plus guests on Father's Day," Mr Donohue said.
Endeavour reduced gaming room hours in Victoria in August following the state government's announcement it would legislate tough new restrictions on poker machines, precipitating a "low single digit" decline in gaming revenue.
Sales also declined at Jimmy Brings as the group moves investment away from the alcohol delivery service.
Endeavour expects strong trading during the spring racing and festive seasons as revellers rush to secure reservations at venues hosting Christmas Day events.
Christmas bookings are already at 40 per cent of capacity, with close to 46,000 patrons anticipated.
Endeavour's board is bracing itself for a protest vote at the group's annual meeting on Tuesday as major shareholder Bruce Mathieson pushes to elect former Woolworths executive Bill Wavish as a director.
Mr Mathieson, the billionaire pub baron who controls 15 per cent of Endeavour shares, has criticised the company's leadership for its performance compared to rivals like hospitality group Australian Venue Co.
E&P Capital retail analyst Phillip Kimber said sales growth was below expectations for retail and hotels and decelerated over the quarter.
"Given ongoing commentary in relation to board appointments, investors will focus on growth rates relative to competitors/the market," he said in a note.
"Overall, a slightly disappointing sales result."
Shares in Endeavour had sunk 2.4 per cent to $4.90 by the afternoon, approaching its all time low of $4.89.
