Endeavour Group (ASX:EDV) reports 3.6% sales growth to $12.3B in FY24

Endeavour Group said group sales rose to $12.3 billion in FY42, a 3.6% increase compared to FY23, and a 1.8% increase on a 52-week basis.

Operating EBIT grew by 4.9% to $1.1 billion, while net profit after tax declined 3.2% to $512 million, mainly due to increased finance costs.

Cash realisation remained strong at 108%, bolstered by an improved working capital position, signalling strong cash generation capability.

"Endeavour Group's F24 financial results demonstrate the resilience of our brands and businesses in response to challenging trading conditions. Value-conscious consumers continue to seek out Dan Murphy's for its well-known lowest liquor price guarantee," said Steve Donohue, Endeavour Group managing director and CEO.

In the retail segment, Dan Murphy's and BWS saw a combined sales growth of 3.7%.

The MyDan's membership program reached 5.4 million active members, contributing to an 83% scan rate and increased member spending. Hotel sales grew 4.2% to $2.1 billion.

Although impacted by inflation, a focus on menu optimisation and accommodation upgrades resulted in improved gross profit margins.

Investments in gaming and new games also supported the growth trajectory.

Endeavour Group declared a fully franked final dividend of 7.5 cents per share, maintaining a full-year payout ratio of 76.3%, slightly above their target range.

The final dividend adds to the interim dividend for total FY24 dividend payments of 21.8 cents per share.

Shares will trade ex-dividend from Sept. 3.

The company noted an improvement in the group’s net tangible liabilities per ordinary share, with figures indicating an upgrade from (32.8) cents per share as of 25 June 2023 to (28.0) cents per share as of June 30.