Endeavour Group (ASX:EDV) expects to suffer an initial sales impact of roughly AU$25 million due to the strike-led closures of Woolworths Group's (ASX:WOW) distribution centers, according to a Tuesday filing with the Australian bourse.
The retail drinks and hospitality business said stock availability in Victoria, Tasmania, and southern New South Wales were hit by the shutdown of Woolworths' distribution centers as a result of the industrial action that started on Nov. 21 and lasted until Dec. 8.
To mitigate the impact, Endeavour rolled out contingency initiatives such as building inventory at stores and accepting direct-to-store deliveries, the filing said. The company warned that sales will continue to be impacted while stores are being replenished.
While the full financial impact remains unknown, the company expects its sales loss to be exacerbated given that the timing of the disruption is during the crucial December period. The one-off impact was not factored into Endeavour's existing guidance.
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