ewsba.se
(RTTNews) - Endeavour Group (EDVGF, EDV.AX), an Australian retail drinks network & portfolio of licensed hotels, reported Monday higher total group sales in the third quarter.
Due to the pricing pressure throughout its supply chain amid increased fuel costs linked to the Middle East conflict, Endeavour estimates that it will incur additional fuel and freight related costs in fiscal 2026 of between A$6 million and A$8 million, which will primarily be reflected in Retail gross margin.
Further, the company is targeting A$100 million of cost savings to be delivered in fiscal 2027, mainly from initiatives focused on store cost optimisation, labour efficiencies, and support office headcount reduction, amid others.
In Australia, the shares were losing around 4.4 percent, trading at A$3.2700.
In the third-quarter, total Group Sales increased 3 percent to A$2.93 billion from last year's A$2.84 billion.
Retail sales were A$2.40 billion, up 2.9 percent from A$2.33 billion, mainly with Easter holiday trading delivering an increase in Retail sales than last year.
Hotels sales grew 3.7 percent year-over-year to A$531 million, while sales momentum in Hotels began to soften in March. Sales growth moderated across all drivers, including food, bar, gaming, and accommodation.
In light of the Middle East conflict, the company plans to increase inventory cover for key fast moving products, and to reach a maximum A$400 million of additional inventory compared to prior year.
The company plans to unveil the details of the broader strategy at its Investor Day on May 27.
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