Endeavour Group (EDV) H2 2025 earnings summary

Executive summary

• Group revenue remained stable at $12.1 billion for FY2025, with strong Hotels momentum offsetting softness in Retail liquor sales on a 52-week comparable basis.

• Hotels sales grew 4.1% year-over-year, while Retail sales declined 1.2% due to subdued consumer spending and supply chain issues.

• Net profit after tax was $426 million, down 15.8% year-over-year, including $11 million post-tax restructuring costs.

• Strong operating cash flow over $1.1 billion enabled a reduction in net debt by $187 million.

• Strategic initiatives included business simplification, cost optimization, and a group-wide strategy refresh with a new CEO commencing January 2026.

Financial highlights

• Group sales were $12.1 billion, broadly flat year-over-year on a 52-week basis.

• Operating EBIT (excluding One Endeavour program) fell 7.3%, with hotel growth offset by retail decline.

• Free cash flow improved by $129 million, aided by disciplined capital investment and asset sales.

• Fully franked final dividend of 6.3c per share, full year payout of 18.8c per share (79% of NPAT).

• Leverage ratio at 3.6x, slightly above target range due to reduced earnings and one-off costs.

Outlook and guidance

• Focus for 1H FY2026 is on flawless execution during the event season, leveraging key social occasions.

• Retail market conditions expected to improve as inflation moderates and real wages rise.

• FY2026 capex guidance: $420–$470 million, including $90–$110 million for One Endeavour program.

• FY2026 finance costs expected to be broadly in line with FY2025.

• Strategy refresh outcomes to be shared in 2H FY2026.