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Major beverages retailer Endeavor Group said it would accrue $9 million in additional costs in the third quarter of the financial year due to the impact of devastating floods in New South Wales and Queensland.
The company, which operates a number of pubs across the country alongside the businesses of BWS and Dan Murphy, told shareholders on Wednesday that flooding had caused “extensive damage” to its stores in the affected areas.
The total impact of cleanup costs, inventory write-offs and lost profits when stores were unable to open will reduce Endeavor’s earnings before interest and taxes by $9 million for the quarter. The company is currently working on an insurance claim.
Overall, Endeavor’s total sales for the first three months of the year fell 2.1% to $2.72 billion, but that improved slightly to a drop of just 0. 3% after adjusting for Easter, which was later this quarter compared to last year.
All of this decline in sales was fueled by the company’s retail division, with the company’s hotels and pubs seeing a 3.8% rise in sales.
However, chief executive Steve Donohue said COVID continued to hurt the business early in the quarter. “COVID-19 has continued to impact our operations.
This was particularly evident early in the quarter, when consumer hesitancy reduced footfall at our hotels, while team availability was a challenge across both businesses,” he said.
“In light of these challenges, it is encouraging to see the continued strength of our business performance. I want to thank everyone on our team for their incredible efforts and dedication during another volatile period. »