An analyst expressed surprise Ari Mervis was not on the call. How will he maintain high corporate governance?
If you strip out New Year, the analyst said, EDV would be down 2.7 per cent in the first seven weeks of trading in retail. Does EDV have to go harder on price promotions? The CEO said it was softer than EDV would like. There's nothing else apart from supply chain disruptions. The first seven weeks is a minor period. The retail businesses remain formidable. Price, range, value and service.
Transactions in Dan's are holding OK. BWS has been affected more: Victoria has seen acute effects where BWS is attached to WOW supermarkets.
Re slide 12, tehre's been chatter (said an analyst) that One Endeavour had blown out in cost and time, refuted by slide 12 as the CEO says it's on time and on budget. New systems will roll out. A partner has been appointed and is working at EDV for the new retail and finance ERP. The store rollout should commence in FY 25 after a test laboratory is rolled out.
Refurbishments of hotels undertaken in FY 23 and FY 24 have been meeting the hurdle of 15 per cent return on the new invested capital. EDV has needed to catch up to competitors 'down the road'.
What EDV is seeing is a big increase in food and beverage (up to 30 per cent with refurbs) but gaming only uplifts in high single digits as EDV's performance with latter was already above competitors.
EDV Price at posting:
$4.26 Sentiment: Hold Disclosure: Held
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