Thank you for standing by, and welcome to Endeavour Group's FY 2022 first quarter trading update. All participants are in a listen-only mode. Endeavour CEO, Steve Donohue, will provide some opening remarks followed by a question-and-answer session. Participants will need to press star one to ask a question. Only one question per person will be permitted. However, if time permits, participants are welcome to rejoin the question queue. I'd now like to hand the conference over to Mr. Steve Donohue, CEO. Please go ahead. Thank you. Good afternoon, everyone, and welcome to Endeavour Group's first quarter trading update. I'd like to begin by acknowledging the traditional custodians of the land on which we're based here today in Surry Hills, the Gadigal people of the Eora Nation, and pay my respects to elders past, present, and future. I'd also like to welcome Shane Gannon, our CFO, who's also with us here today. I'll be providing a short overview of the trading results for the quarter, and then Shane and I will take a few questions. The first quarter of our financial year covers the period from the 28th of June through to the 3rd of October. As you're all aware, there's been significant COVID restrictions in place across this period, most notably lockdowns in New South Wales and Victoria, along with a variety of other trading restrictions across the country. Through the quarter on average, 40% of our hotels were closed. As a national hotel operator, this has had a significant impact on our business. Sales from our hotels were AUD 282 million in the quarter, which was down 9.9% when compared to the same quarter last year. You might remember that COVID also impacted on trading in Q1 of last year when Victoria experienced its extended lockdown. To provide some further context on the impact of COVID, our hotel sales were down almost 40% when compared to FY 2020. Despite these immediate challenges, we've continued to look to the future and have continued to invest in hotels. We've accelerated the rollout of our digital order and pay capability, which has actually had great customer take-up when our hotels are actually open, as well as having rolled out a new time and attendance system for our team. We're pleased to complete the acquisition of the Terrey Hills Tavern, which we referenced as part of our full-year results, and we've subsequently acquired the Manly Hotel in Queensland. These acquisitions included five accompanying retail stores that have been added to our BWS network in the quarter. Turning to retail, sales of AUD 2.654 billion were recorded in the quarter. This is in line with the very strong sales of Q1 in FY 2021 and up 21.4% on Q1 in FY 2020. Pleasingly, sales were strong in each state, indicating that our sales resilience has not entirely been a consequence of on-premise closures. Our retail team were able to deliver improved customer engagement even while navigating changing trading patterns. Customer engagement during the quarter, as measured by our VoC NPS scores, was up three points for both BWS and Dan Murphy's. Our online sales grew 34.4% when compared to the prior year, and this represents a penetration of 11.5% of retail sales in the quarter. Notably, the on-demand delivery services offered by Dan Murphy's and BWS saw heightened demand, particularly from customers seeking more premium products. During the quarter, 10 BWS stores were opened, including the five that I mentioned, and one store was closed, bringing the total BWS store network to 1,401 stores. Reaching that milestone of 1,400 BWS stores was really cause for celebration across the whole Endeavour Group. Dan Murphy's store network ended the quarter with 253 stores following the opening of two new stores, one at Fishermans Bend in Port Melbourne and the other at Batemans Bay in New South Wales. I want to acknowledge the enormous effort from our team during the quarter across all of our businesses. We've continued to support our teams with vaccination leave. We've also had vaccination hubs operating in New South Wales and Victoria, and we've supported team members who were required to isolate during the period. It was really fantastic to welcome patrons back to our New South Wales hotels last week, most of which had been closed for 105 days, and we look forward to similar celebrations in Victoria in the coming days as they too emerge from their extended lockdowns. We're also looking forward to operating with our entire network actually open, particularly as we come into summer and then through to the new year, which I'm sure everyone on the call is looking forward to. As we referenced in the Q1 announcement, we anticipate our trade will continue to be impacted by COVID restrictions. Additionally, there are some ongoing challenges in both team availability and supply of product, which we'll continue to monitor and respond to. Having said that, with our hotels open and opening and only 66 days until Christmas, there's definitely a renewed sense of excitement and optimism across our business. We're focused on delivering a social and safe experience for all of our customers over this important time for everyone. I really hope that we can welcome each of you back to enjoy our hotels, our stores, our wines, and our wineries over the coming festive period. Appreciate you joining the call today. Thank you for your time. I'd now like to hand over to questions for both Shane and I. Thank you. Your first question today comes from Michael Simotas with Jefferies. Please go ahead. Good afternoon, Steve and Shane. My question is on the data point you shared for the retail business outside of the lockdown states. You said up 17% on a two year basis. Can you talk about what your on-premise business did in those states? When I look at the numbers you've reported and the number that you had closed, it looks like it probably wasn't that far off normal to me. With that in mind, why do you think your retail sales are still so elevated in those states? Thanks, Michael. Appreciate the question. I might come to the second part and then see if we can bring any more color to the hotels on a state basis. We're just shuffling our papers to get to that. To answer the second part of your question, I think, a combination of the digital offer that we've been able to build over a long period of time, and the fact that customers now understand that there's multiple ways to shop us, and they've become more familiar with the more convenient options. As referenced in the announcement, our preferred or most popular shopping method for customers coming to our store is our contactless to boot pickup, and that's reflected in those NPS scores. Further to that, the most preferred shopping method from home is express or on-demand delivery. I think those two things are somewhat unique. There are other competitors doing them out there in the market, certainly, I think that our scale, and like to think that the quality of our offer, whilst we work hard on trying to continue to improve it, are two of the things that have kept customers coming back. The team's also done a lot of work on range in the last quarter, well, probably the last half, a lot of that's come to fruition in the last quarter. We're seeing some real pops in areas like seltzer, in areas like rosé, we've got relatively unique offerings in that regard in those categories. I think some of those fundamentals are playing out in our favor. I'm going to ask Shane if he's got some specifics that we'd be happy to provide on the hotel performance. Anything you'd add, Shane? Look, it may be better if we come back to you on that. I'm just looking at the stats, and there's probably a fair bit of detail there, if you don't mind, Steve. No, no worries. I'm not asking the question, Michael is, obviously. We might come back to you on that, Michael. Yep. Suffice to say that where hotels have been able to trade, they've been trading quite well in general terms. We've been pleased with the performance of hotels in Western Australia, for example. I think that points to the fact that there's no international travel, obviously, and people are very much enjoying the hotel experience. We can probably come back with a bit more color for everyone on that topic in due course. I think, in broad terms, people are continuing to enjoy the hotel experience. Thank you. Your next question comes from Grant Saligari with Credit Suisse. Please go ahead. Good afternoon, thanks. My question on the hotels business. Could you indicate with the reopening in New South Wales and the prospective reopening in Victoria, at what sort of level of capacity, utilization relative to sort of pre-COVID levels, you'll be able to operate those hotels in broad terms, please? We're still operating a 1 in 4 sq mi in New South Wales at the moment. However, pleasingly, you can now drink standing up, which does make a big difference. There is a variation of restrictions on a state-by-state basis, and as I've said before, each one of those restrictions does have a direct impact on our trade. It would be fair to say that people came back to New South Wales hotels with gusto last week. We saw very strong performance across all areas of the hotel offer, with perhaps the exception of accommodation because people are just not traveling yet. There was a real desire, particularly on the Monday, to get back to the pub, and we saw them very well attended right across the state. As has been the case for as long as COVID's been around now, there is a direct correlation, as I say, between a 2 sq mi versus a 4 sq mi, drink standing up, can only drink sitting down, can only have 20 people in the hotel, which is actually the case for us in Victoria at the moment, and consequently, results in us limiting the number of hotels that are economic for us to open, and that's of course going to change next week. As these restrictions change, so do the performance of the hotels that are affected by them. Thank you. Your next question comes from David Errington with Bank of America. Please go ahead. Hi, Steve. Hi, Shane. Steve, can I get back to Michael's point and draw it out a little bit more? I think it's a key point that, if we go back in time, your 2019 year was, to your, not so much yours, but certainly Brad's, I think that's when Brad brought you into the business, but your 2019 year was a very disappointing year for liquor retail in particular. You were misfiring on a lot of ranges. In 2020 and 2021, we couldn't really judge your performance that well because of COVID. The number that Michael called out, I think, the 17% growth over a two-year period, in the non-lockdown states, is certainly probably the cleanest number that we've got to see how your business is performing on a like for like, cleanish basis. To sort of like elaborate on what he was saying, is it hotels, people aren't going back to hotels in those areas? In other words, there's a reluctance to go to hotels. Consequently, retail sales are elevated, or are they going back to hotels at the rate that they were previously, but your sales in retail are just better because you're doing these things at a significantly better rate? What are these areas such as digitalization and customer traction that others can't do? I'm assuming very premium offers and higher margin. I know it's not a profit number, but it's a sales number. It seems to me that your business at Dan's and BWS has significantly stepped up. Your sales are better despite customers going back to hotels, and it's a lot better, higher quality business. Can you elaborate a bit further on that? I think that's a very, very important point out of this quarterly sales. Yeah. Thanks, David, for the question. I think the question itself just demonstrates how much complexity there is in looking back through the numbers. I guess I would say hotels, you look at markets like Tasmania up until the recent lockdowns in Western Australia. They've really came back after lockdowns had taken place, and I think that's because we've got customers confined to their states and confined in the numbers of experiences that they can have. You are spot on as it relates to premium in terms of customer experience and product demand. A lot of the growth that we're getting is coming from more premium products, put it that way. Certainly Dan Murphy's has the largest range of premium products in the market, that's probably been a beneficiary of that customer trend. It's also played out similarly inside hotels in terms of an expectation of a premium experience, let's say when it comes to a cocktail, for example. We're continuing to see significant increases in demand for cocktail. A lot of those increases are connected to the digitization of the experience or the convenience provided through the digital platforms we provide. By that I mean, as we've rolled out our order and pay at table capability in hotels, that's driven an increased demand for cocktails because you sort of lay out the cocktail menu in front of the customer, and they want to treat themselves and therefore do so. In the case of retail, I mentioned the ongoing significant increases that we're seeing in our digital demand, our e-commerce demand. The key driver behind that has been on-demand delivery services. That's our fastest growing segment of e-commerce. The fastest growing element of on-demand delivery has been premium products. By that I mean wines over AUD 50 a bottle, spirits in the vicinity of AUD 100 a bottle. What we're seeing is this real emergence of indulgence linked to immediacy. I want something really good, and I want it really quickly. That customer trend is very aligned with, I think, both the capabilities that we've instilled into the business from a digital and logistical standpoint, but also links back to the products that we've been able to offer our customers. It's quite a big trend. Thank you. Your next question comes from Shaun Cousins with UBS. Please go ahead. Thanks. Good afternoon. I guess just a question on the comments regarding labor availability. Can you just talk a little bit about the costs that you're having to incur? Are you having to pay more to staff to attract them? Have you had to pay staff while pubs have been closed so that you're confident of retaining them upon reopening there? I was curious around how this labor availability issue you've highlighted plays out on a cost basis to some degree, please. Yeah, thanks, Shaun. Appreciate the question. I think we were really proud actually to be in a position to be able to support every one of our hotel managers through all of the lockdowns and keep them on. That was, I think, important for them and important for us because they're key critical talent, and operating a hotel requires quite deep knowledge of the site itself and obviously the patrons therein. That's the first thing I'd say. We were very, very pleased that our hotel management team stuck by us, and they're now, in the markets we're operating, I think very pleased to be doing so. That's the first one. The second thing to say, I suppose, is that we're not necessarily seeing wage pressure. I think that's what you were kind of intimating or referring to. We're just finding it challenging to find people to fill the roles that we're talking about, there's a whole dearth of roles that need people to fill them, like cheffing roles or supervisory roles and so on and so forth. A lot of those require certification. They're sort of skilled roles. One of the consequences of COVID, I think, is that people have pursued other options or they're still in a position where they choose not to work. I think we look forward to seeing that come back to a degree of normality. Certainly in due course too, we'd like to think that some of the 457 visa holders that were able to participate in our business historically will be able to do so in the future. It's a question of, I guess, being patient and also helping people understand the positive career that you can have in both the hotels business and the retail business. Thank you. Your next question comes from Ben Gilbert with Jarden. Please go ahead. Good afternoon, Steve and Shane. Just one from me. Just from the inflation outlook, given a large portion of liquor is imported and sort of what we're seeing across other retail categories, just keen to get a bit of color on how you're seeing that environment over the next few months? Thanks, Ben. Appreciate the question. Yeah, I think, inflation will be what it will be, I suppose, but when you look at the challenges that anyone trying to import anything into Australia, let alone the products that we sell, is facing, then I think we can all recognize that costs in that regard are increasing. The percentage of the total drinks that are sold in Australia, I think we have a lower penetration of imported product than certainly some other categories if you look out across food and other segments. We'll have a balanced exposure in that respect, I suppose. I think the good news here is that if there are challenges getting imported products, then in highly substitutable categories like ours, where people have quite broad repertoires, you'll see them switch back into Australian products, which is arguably good news in that instance. It's very hard to tell with any sort of precision, what inflation's gonna look like. We just know that we are facing challenges on a few fronts with respect of international shipping and availability associated with that. Thank you. Your next question comes from Ross Curran with Macquarie. Please go ahead. Hi, team. Sorry to come back to this, I wanted to go back to Michael Simotas' point. Maybe, can you give us a bit of a color around when the hotels are reopening? Is the mix going through the hotel, the gaming/food/bev mix, is that the same as it was pre-COVID, or are you seeing gaming over trade, in those states now? Hi, Ross. Thanks for joining and thanks for the message. What we saw in New South Wales last week was significant elevation across gaming, bars, and food. I was actually thinking that food would be a slower catch-up, but I think by nature of the fact that people really wanted to spend a lot of time in hotels last week in New South Wales at least, there was a better pickup in food than we'd expected. The shift really comes when you take accommodation out. Now, accommodation will vary from anywhere from 1% to 4% of the mix, and once you take that out of the equation, because it's still, in the New South Wales context at least, in the first week, was running at very, very low occupancy rates. The shift really is a three to four percentage point gap that's washed out evenly back across the other drivers. The important point is that everything lifted with the exception of alcohol. Thank you. Your next question comes from Tom Kierath with Barrenjoey. Please go ahead. G'day, guys. My question's on Pinnacle Drinks. I'd just be interested in what growth you've experienced there, and with the oversupply Aussie wine market, what you're thinking, in terms of what your plans are in the near term to grow that business. Thanks, Tom. Appreciate the question. Yeah, look, our Pinnacle Drinks business has continued to resonate with customers, I suppose, in terms of the brand offerings that are provided through our retail stores, and somewhat through our hotels as well. I think what's been nice for us, and is clearly linked to the comments that I was sharing before about indulgence is that, nestled inside our Pinnacle Drinks business is a portfolio which we refer to as the Paragon Wine Estates, and they're the very best wines in our portfolio, and consequently, they are, generally speaking, the most expensive wines in our portfolio. They've benefited from that sort of trend that I was talking about before with indulgence. Having said that, they are a relatively small share of the overall business, but it does go to show that in areas where Pinnacle, and Paragon therein, has traditionally under-indexed in terms of our mix of business, customers have really sought them out. It's off the back of things like Oakridge 864 2019 Pinot winning James Halliday's best Chardonnay in Australia, alongside the likes of Penfolds Grange and Leeuwin Estate, both of which retail for over AUD 100 a bottle, whereas our Oakridge is in the sort of AUD 80-AUD 90 a bottle mark. It's somewhat recognized as affordable indulgence, if you like, in contrast to its peers there. That's really the Pinnacle story in the quarter. In terms of the other part of your question, as far as access to more premium products concerned, I did touch on that in our full year results. Not a lot has changed, obviously, given that we haven't really had vintage, if you like, and that's often the catalyst for the most change. 1 of the steps that we took in the last couple of years was to stop selling our most premium old vine fruit back into the market, and start producing wines ourselves, from that very old vine fruit, average age 60-100 years. You see that reflected in our Krondorf range. As wines like Krondorf and Riddoch have grown in popularity, we've been able to go back into the market and source very premium grade fruit, predominantly B and C grade fruit, in both the Coonawarra and Barossa regions, that have augmented the availability of the most premium products that are part of the Pinnacle and Paragon Wine Estates range. Thank you. Your next question comes from Craig Woolford with MST Marquee. Please go ahead. Afternoon, Steve. I was just gonna change tack a bit. There has been a bit of M&A activity in the hotel market over the last couple of months. It looks like a couple of the hotels would've been hotels that Endeavour would find appealing, large blocks of land, suburban hotels. You haven't been successful. Can you just comment on the activity in the hotel market and how you're approaching some of the potential sites that are up for sale? Yeah, thanks, Craig. Appreciate the question. You're right. There is obviously continuing activity in the hotel market at probably unforeseen levels. We, as I mentioned, have been able to secure two hotels in the quarter, and I said at the full year that last year we'd only managed to add about, well, we added five hotels to the portfolio, and a lot of those came late in the year. Our aspiration was to do considerably better this year. In context of the market, noting that we were always going to take a very disciplined approach to that, given that we've got in excess of 330 hotels in the network today. We've got continuing opportunities to reflect back into ourselves and determine whether we'd get more bang for our buck, given market conditions out of improving our network. We do participate, to your point, in any hotel that comes onto the market that would meet our expectations in terms of format. We've continued to do that, and we have been under bidders, if you like, or at least expressed interest in some hotels, which we haven't been able to secure. We actually feel okay about that because we know it's a very fluid market, and that there are other opportunities on the horizon that we continue to engage with the market on. I think it's a reflection of the discipline that we really do intend to continue to apply here to our capital management. It can be a bit of a heady category, the hotels category, whereas we're obliged to take a very circumspect perspective on it. Thanks. Thank you. Your next question comes from Phillip Kimber with Evans and Partners. Please go ahead. Hi, guys. My question just, I agree that online business in off-premise are very strong and in particular, you mentioned outside of New South Wales and Victoria, that penetration was strong in the non-lockdown states. Can you give us any sort of broad commentary around store versus online profitability? There's a whole spectrum from supermarkets, where it is different through to, and lower for online through to apparel, for example, where it's more profitable online. Just maybe any general comments you could mention in terms of where profitability sits for the online off-premise liquor business? Thanks, Phil. Appreciate the question. Yeah, look, it is still true that online profitability lags the profitability that we generate from customers who come to our stores, serve themselves from the shelves, and then take it away themselves. As I said at the full year, it is an area where we've put an enormous amount of focus and emphasis on understanding each element of the value chain, and then working through how we can re-engineer the costs and recovery of costs in those areas, and also improve our processes so that we can reduce the amount of time it takes to pick an order. We can route orders to carriers that are going to provide the most efficient and effective experience for our customers. It is a big part of the business today that is optimizing the ability to provide customers with that level of convenience. It is true that it continues to be at a lesser overall profit margin to the traditional come in and pick it off the shelf. Having said that, we continue to merchandise, if you like, in the digital space in a way that provides customers with more choice when it comes to premium product. As I touched on before, we are really seeing a consumer trend towards that indulgence and immediacy. It is still, even in that context, challenging for us, and we will continue to work on it. We have got more work to do there. Thank you. Your next question comes from Bryan Raymond with JP Morgan. Please go ahead. Good afternoon. Just back on the hotels business. Just interested in your investments you've been making on the gaming machine front. How the average age has changed over the quarter, maybe year-on-year. Are you seeing the ROI on that investment through the AUD going through the machines? Given on reopening, you've obviously seen all of the hotel recover pretty well. I would have thought gaming would have probably outperformed a bit given what you're doing on the investment side. Yeah, just interested in any comments around that. Thanks. Thanks, Bryan. Appreciate that. Yeah, look, we've been working on bringing that average age down. Throughout the last 12 months it's probably come down in the vicinity of 12 months, the average age. Closer to seven than perhaps what it was a year ago. That's been good. I think what's been an interesting learning for us is that it's not just about the machines themselves. There is a variety of factors that need to be taken into account when you are improving your business, if you like, which is what we seek to do in hotels. Probably the Sunnybank Hotel in Brisbane is a good example of where we were able to create a whole new experience in the gaming room. We also invested a lot in the adjacent sports bar. That goes to the whole customer experience that people are looking for now. We also added a material number of new machines into that environment. It's not just the one thing, it's a combination of all. We've also continued to set up our gaming rooms as COVID-safe, i.e., spacing the machines out and providing customers with a safe playing environment, and that continued through the quarter as well. What I guess has also been interesting is that a number of the new machines that we've got are over-indexing in terms of performance. That's really encouraging because one of my reservations as we increased our investment in the EGM fleet was that we might pick machines that were less popular with customers than perhaps the ones we had previously. I think a credit to the manufacturers that we're working with, we've got an increase in trading performance out of those machines ahead of the rest of the fleet. In round numbers, you've got perhaps low teens of new machines, but they're operating at high teens in terms of contribution to the total turnover in gaming. That's given us a degree of encouragement, and as I say, is a credit to the operators. Probably first amongst them, to be honest, Aristocrat, whose offers continue to resonate with our players. Thank you. Your next question comes from Richard Barwick with CLSA. Please go ahead. Okay, thank you. Just following on from exactly that topic. When you're talking about the number of refurbs that you're doing within the pubs, how should we think about that in the context of upgrading the gaming fleet? They're two distinct things, but presumably, as you gave that Sunnybank example, if you are upgrading a whole bunch of machines, then are you classifying the rework of the gaming room as a refurb as well? Is that the catalyst for refurbing the whole pub? Just how do the two work together, if at all? Thanks, Richard. Look, they all are interconnected, I suppose. We always face this challenge of aggregating and disaggregating our efforts. It's even true across hotels and retail, which of course support one another, often on the same pad. That's true for Sunnybank. We've got both a renewed BWS drive-through, which is trading well, and a Dan Murphy's, which we're about to perform a renewal on, alongside a great pub with, actually, I think at the moment, often Brisbane's most popular gaming room and adjacent sports bar. It's always in the combination, and we try and apply a very forensic approach to understanding what has driven those outcomes. We know it's often in the mix. Now, having said that, we will go into a particular venue and only change machines, for example. We might also go into another venue and only upgrade the environment and not change the machines. There's a lot of light and shade in the approach that's taken. I think the important thing to know is that increasingly we're applying a very forensic financial lens and commercial lens to what sort of outcomes we're getting in pursuit of trying to improve what we're going to do next, if you like. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question is a follow-up question from Michael Simotas with Jefferies. Please go ahead. Thanks for taking another one. Look, I know it's a sales call, I appreciate that. You guys obviously had a fairly substantial announcement two weeks ago with the change in management that's impending for the hotels business. Is there any more commentary you can make around that, given the Mathiesons have been obviously involved in the hotels business for a long period of time, still have an equity stake. Just anything more you could add would be helpful. Thank you. Yeah. Thanks, Michael. Happy to talk to it. I’m personally, and I know that the whole organization’s very grateful for Bruce’s past and ongoing contribution, Junior, that is, to the business. It’s a heavy burden running a hotels business of the scale of Endeavour Group’s in ALH. He has done it with absolute commitment for a long period of time, and it is truly a seven-day-a-week proposition. Now he’s been able to do that because he’s so passionate about it, and I think that’s an enormous credit to him, and he has certainly worked his way all the way from being an air conditioning engineer to being the Managing Director of the group. It’s an enormous credit to his humility and modesty, I think, as an individual and a leader. We will continue to benefit from input from the Mathieson family, and that is hugely valuable for us, given their experience and understanding of how the hotel industry and in particular our hotel network operates. We're very pleased to have Senior as a director. We're very pleased to have the Mathieson family as investors because they do add a lot of value. It's also fair and reasonable for Junior to, at this stage of his life, take a break from what is a really challenging job. One that, as I say, he's very passionate about. I think a fair step for him to take a break. I'm very appreciative of the efforts that he's given us, and I'm also very appreciative of the ongoing relationship that we'll have. Thank you. Your next question is a follow-up question. It comes from Shaun Cousins with UBS. Please go ahead. Great. Thanks. Just a question, sorry, back on the labor availability. You called out 457 visas there. Are there issues around the absence of tourists as well that work in your pubs? Particularly, we're getting some feedback from retailers that access to labor is a little tricky, particularly in regional areas where vaccination rates of staff are less. You called out the efforts the company's trying to do to encourage vaccination or offer that, be it leave and the like there. Are you seeing an absence of tourists and then also different vaccination rates among your staff impacting the broader labor availability issues that you're facing, please? Thanks, Shaun Cousins. Yeah, well, I guess it goes without saying that there is a lack of tourists that are available to work in the business, and this is as true for our industry as it is many others and fruit growing, et cetera. That is a clear challenge. In terms of vaccination question, you're right. It has been a slower rate of uptake in regional areas, and we actually think, at least in our experience, that's relative to the access to the vaccines, or was at a point. Everything's changed and has changed very quickly. We certainly had some regional areas where the uptake had lagged some of the metro areas. That's also pretty well been caught up as well. In fact, despite some concerns we had, there has been a real fervor inside the Endeavour Group to get vaccinated and get back to work, and we saw that play out in the Victorian example last week. On balance, we've come out of that challenge relatively well, I would say. Although, we did have moments of concern in regional areas, they're long now past. If they feel as though they're long now past, it's probably only a matter of a month or two ago that we were a little worried about it. Thank you. Your next question is another follow-up. It comes from Bryan Raymond with JPMorgan. Please go ahead. Thanks for taking the follow-up. Just on those global supply chain issues you addressed earlier, just interested how you expect that to play out through inflation over the next 12 months, but also what sort of availability issues you're seeing at the moment. Is it impacting a material amount of your SKUs in terms of out of stocks and inability to get product? Do you think it's impacting sales? Thanks. Thanks, Bryan Raymond. Happy to take a follow-up. Inevitably, there will be some relatively minor impacts on sales due to availability. There's just no two ways about it because as much as I'd like to think that everybody will switch into an alternative product, that's not entirely true. Retail 101 is make sure you've got the stock to sell, and whenever we don't, we know we face challenges. We've had, in honesty, some challenges with our domestic supply chain as a result of COVID impacts in DCs, and everybody's working very hard to catch that up, and we're making good progress there. You will see in all of our stores some gaps as a result of that. We were last week about a day behind, and we're closing that gap down in terms of supply availability. Being one day behind makes your store feel like it's had one big day's trade, if you like. It's not empty, but you do have some gaps in the store. In terms of the international question, I think the thing to bear in mind is that generally speaking, our products are relatively high unit values when compared to, for example, food. I happen to be talking to a bread importer recently who said that given the percentage share of the COGS that is attributable to the shipping cost, that they had a much bigger exposure to these challenges than perhaps somebody that was importing, for example, French Champagne, which is selling for AUD 50 up a bottle compared to perhaps AUD 0.50 a bread roll, if you like. The relative impact on one item level is probably going to be less. Nonetheless, there is likely to be some impact. Thank you. There are no further questions at this time. I'll now hand back to Mr. Donohue for closing remarks. Thank you all for joining this update. We do appreciate the interest in Endeavour Group. As I said, we're feeling really pleased to actually be able to open our hotels again and serve everybody in this really important trading period for us, particularly in Victoria, where our team has really suffered quite extensive delays. Thank you for your attention, and we look forward to serving you in one of our pubs, our wineries, or over the counter in one of our stores before too long. Cheers. That does conclude our conference for today. Thank you for participating. You may now disconnect.