Endeavour Group (EDV) H1 2025 earnings summary

Executive summary

• H1 F25 sales were $6.6 billion, down 0.7% year-over-year, with strong Christmas trading offsetting significant supply chain disruptions, particularly in Victoria.

• Net profit after tax was $298 million, down 15.1% year-over-year, with EBIT declining 10% to $595 million, impacted by $13 million in one-off restructuring costs and supply chain issues.

• Strong operating cash flow led to a 168% cash realisation ratio and net debt reduction of $273 million.

• Disciplined cost management and the EndeavourGO program delivered $40 million in H1 savings, with $230 million cumulative savings to date.

• Interim dividend of 12.5c per share declared, fully franked, with a 75% payout ratio, down 12.6% year-over-year.

Financial highlights

• Group sales were $6.6 billion, down 0.7% year-over-year; Retail sales declined 1.5% to $5.5 billion, Hotels sales grew 3.3% to $1.1 billion.

• Operating EBIT margin: Retail 7.2% (within guidance, after $11 million restructuring and $8 million supply chain costs), Hotels 24.5% (up 2bps), with EBIT up 3.4%.

• Gross profit was $2,310 million, with gross margin improving to 34.9%.

• Operating cash flow increased to $1.04 billion, up $122 million from prior year.

• Earnings per share was 16.7c, down from 19.6c year-over-year.

Outlook and guidance

• Retail sales in the first seven weeks of H2 F25 declined 0.8%, while Hotels sales rose 4.7%.

• Full-year CapEx expected between $375 million and $425 million, including $45–55 million for One Endeavour, lower than previous guidance.

• Finance costs for FY25 expected at $305–315 million.

• Retail market conditions expected to improve as inflation moderates; focus remains on price leadership, efficiency, and disciplined capital allocation.

• Targeting $290 million+ cumulative cost savings by FY26.