Endeavour Group (EDV) H1 2026 earnings summary

Executive summary

• Group sales rose 0.9% year-over-year to $6.7 billion, with underlying EBIT at $563 million, at the upper end of guidance, and statutory NPAT at $247 million, down 17.1% due to significant items.

• Retail momentum improved, especially in Dan Murphy's and BWS, with record December sales and 2.2% Q2 growth.

• Hotels segment delivered 4.4% sales growth, with 21 venues upgraded and over 800 new EGMs installed, benefiting from strong seasonal trading.

• Interim dividend declared at 10.8 cents per share, fully franked, with a 70% payout ratio.

• Retail focus on value and price leadership drove market share gains, despite margin compression and a highly competitive environment.

Financial highlights

• Underlying EBIT declined 5.4% year-over-year to $563 million; underlying NPAT fell 6.7% to $278 million; statutory NPAT was $247 million.

• Retail sales increased 0.2% to $5.5 billion; Hotels sales rose 4.4% to $1.2 billion; Dan Murphy's and BWS combined sales grew 0.7%.

• Online sales for Dan Murphy's and BWS surged 35.1%, now 11.3% of combined sales.

• Gross profit margin in retail declined 84 bps to 23.9% due to price leadership and promotions; hotel gross margin expanded 12–13 bps to 85%.

• Operating cash flow was $997 million, with a cash realisation ratio of 165%; free cash flow was $446 million, down from $599 million.

Outlook and guidance

• Retail sales grew 1.3% and Hotels 4.5% in the first seven weeks of H2 F26; growth moderated in February.

• Capital expenditure guidance raised to $460–500 million for F26, mainly for accelerated hotel renewals.

• Retail gross margin expected to reflect continued price leadership focus; finance costs to remain in line with F25.

• Consumer spending outlook remains uncertain due to inflation, interest rates, and global tensions.

• Management expects continued compliance with financial covenants and sufficient liquidity for the next 12 months.