Endeavour Group’s net profit declined in the first half, impacted by the Victorian supply chain disruption during the peak end-of-year trading period.

The group’s net profit fell 15.1 per cent to $298 million while sales slid 0.7 per cent to $6.62 billion.

Retail sales declined 1.5 per cent to $5.5 billion, attributed to subdued consumer spending and an estimated $40 million to $50 million loss from the industrial action of Woolworths workers. Endeavour uses Woolworths’ warehousing facilities in Victoria.

On the other hand, hotel sales increased 3.3 per cent to $1.1 billion on the back of higher food, bars, gaming, and accommodation sales.

For the first seven weeks of the second half, retail sales decreased 0.8 per cent while hotel sales grew 4.7 per cent.

Endeavour Group names new executive chairman

Meanwhile, Endeavour Group has appointed Ari Mervis as executive chairman for up to 12 months from March 17, until a new CEO is recruited.

The board expects the new CEO to assume the position after current CEO and MD Steve Donohue’s 12-month resignation notice period expires. Endeavour Group announced the resignation of Donohue last September 27.

“As executive chairman, I look forward to working with the Endeavour team on improving the business’ performance to realise the full potential of Endeavour’s unmatched assets,” said Mervis.

The company said that its search for a new CEO is progressing well.

In addition to Mervis’ appointment, Endeavour Group designated Penny Winn and Peter Hardy as non-executive directors, effective March 3.