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.
