Endeavour Group (EDV) H2 2024 earnings summary

Executive summary

• Achieved record and resilient sales growth in both Retail and Hotels, supported by gross margin expansion, cost optimisation, and strong execution of strategic priorities despite challenging trading conditions.

• Maintained disciplined capital management, strong cash generation, and stable full-year dividend of 21.8 cents per share.

• Continued progress on business simplification, digital engagement, and technology separation from Woolworths, including the One Endeavour program.

• Delivered $100 million in cost savings through optimisation initiatives, with a target of $290 million+ by F26.

• Positioned for long-term shareholder value creation of 10%+ per year from FY26, despite near-term headwinds.

Financial highlights

• Group sales reached $12.3 billion, up 3.6% year-over-year (1.8% on a 52-week basis); operating EBIT grew 3.1% to $1.1 billion (1.8% 52W); NPAT declined 3.2% to $512 million due to higher finance costs.

• Operating cash flow was $1.2 billion, with a cash realisation ratio of 108%; net debt reduced by $55 million to $1.87 billion.

• Dividend payout ratio was 76.3%, slightly above the 70-75% target range; full-year dividend per share was 21.8c.

• Leverage ratio at 3.5x, within target range; weighted average debt maturity extended to 3.8 years; $670 million in undrawn debt facilities.

• EPS was 28.6c, down 3.1% year-over-year.

Outlook and guidance

• Early F25 trading shows improved sales momentum: Retail up 0.6%, Hotels up 2.0% in the first seven weeks.

• F25 finance costs expected between $310 million and $325 million; CapEx guidance set at $450–500 million, including $60–80 million for One Endeavour program.

• Targeting 10%+ value creation (EPS and dividend growth) from FY26, assuming stabilised interest rates and inflation.

• F25 growth rates will be impacted by the 53-week comparison in F24 versus 52 weeks in F25.

• Focus on price leadership, cost discipline, and unlocking $150 million EBIT opportunity in Hotels by 2028.