Endeavour Group, owner of Dan Murphy’s and one of Australia’s largest pub and hotel operators, faced significant shareholder dissent over executive remuneration amid ongoing operational challenges. The Mathieson family, which holds a 15.1 percent stake in the company, came close to triggering a shareholder strike against Endeavour’s remuneration report, citing excessive executive pay despite what they described as underwhelming company performance.

At the company’s annual general meeting, chair Bruce Mathieson Jr criticized the Endeavour board for continuing to reward executives amid what he characterized as weak financial results. Although he emphasized that the protest was not directed at CEO Jayne Hrdlicka, who joined Endeavour earlier this year, Mathieson argued the board had been insufficiently rigorous in holding management accountable. The remuneration report received a 24.4 percent protest vote, narrowly missing the 25 percent threshold required to force a remuneration strike.

Hrdlicka, the former chief executive of Virgin Australia, addressed shareholders for the first time since taking the helm, acknowledging the headwinds the company is facing. She pointed to a challenging macroeconomic environment marked by rising interest rates, higher fuel costs, and inflationary pressures that have reduced discretionary consumer spending across Endeavour’s retail and hospitality businesses.

The group’s latest trading update showed a further slowdown in its pubs and hotels division, with sales growth in that segment dropping to 1.9 percent in the first quarter—down from 4.2 percent growth in the previous quarter. Overall group sales increased 2.8 percent to AUD 3.18 billion, driven primarily by a 3 percent rise in revenue from retail outlets including Dan Murphy’s and BWS, which posted AUD 2.57 billion in sales. However, gaming revenues from poker machines remained flat year on year.

Hrdlicka outlined her strategy to revitalize Endeavour, focusing on cost-cutting measures and portfolio optimization, including plans to divest from wine and vineyard assets. The company has launched a AUD 300 million cost reduction program aimed at completion by 2029, alongside efforts to upgrade and better position its hotel network. She stressed the importance of maintaining a strong operational foundation while pursuing a turnaround that would enable sustainable growth.

Analysts noted that while Endeavour’s retail operations continue to outperform the broader liquor market, the overall business faces softness amid the tightening consumer environment. Citi analyst Sam Teeger commented that although retail sales growth remained solid, momentum in hotels was slowing, reflecting broader trends of constrained household spending.

Endeavour’s shares have declined sharply since the company’s demerger from Woolworths in 2021, falling about 60 percent from their late-2022 peak. Despite these challenges, Hrdlicka expressed confidence in the company’s future prospects, highlighting the “talented people” across Endeavour’s operations and the progress being made in implementing the turnaround plan.