Highlights

  • Endeavour Group (ASX:EDV) reported Q1 FY27 group sales of $3.18 billion, up 2.8 per cent over the 14-week period.
  • Retail Revenue rose 3 per cent to $2.58 billion, outpacing the overall liquor market, led by a very strong July.
  • Hotel gaming revenue was flat on the prior year as cost-of-living pressures pushed customers toward value.
  • Retail added three Dan Murphy's and two BWS stores in the quarter; Pub+ loyalty scan rate reached a record 38 per cent.

Endeavour Group (ASX:EDV) opened its FY27 reporting season with a quarter that tells two stories. The first week of the period was strong; the weeks that followed were more measured, as shoppers watching their household budgets pulled back on spending. For the owner of Dan Murphy's and BWS, that meant solid headline growth — but also a reminder that the environment beyond a buoyant July remains cautious.

First-Quarter Sales

Over the 14 weeks of the first quarter, group sales rose 2.8 per cent to $3.18 billion. Retail revenue climbed 3 per cent to $2.58 billion, which the chief executive said continued to outpace the overall liquor market. Hotel revenue was $603 million; the source did not provide the year-on-year percentage change for this segment. Hotel gaming revenue was flat on the prior year. Comparable-sales figures were not reported in the source reviewed.

Management characterised spending as more moderate since July, with cost-of-living pressures pushing customers toward value purchases, and said it expects careful spending to continue through the holiday trading season. Shares were reported unchanged at $3.32 after the announcement.

Network and Operations

Retail added three net new Dan Murphy's stores and two net new BWS stores in the quarter. Endeavour plans to complete 34 venue refurbishments and renewals by the end of the first half. The Pub+ loyalty scan rate in hotel venues reached a record 38 per cent. Management is also working on operating model simplification and loyalty programme integration.

Full-Year Investment Programme

FY26 gave Endeavour a challenging backdrop: sales of $12.2 billion rose 1.3 per cent, but underlying net profit fell 14.8 per cent to $363 million and statutory net profit dropped 87.8 per cent to $52 million after significant items. Net Debt rose to $1.9 billion and the final Dividend was 1.2 cents per share. Management described FY27 as a year of investment, with Capital Expenditure guided at $550 million to $650 million, up to 75 hotel renewals, about 1,900 new gaming machines and a $300 million cost-out target by FY29.

Online retail grew 34.8 per cent in FY26 to $1.1 billion, representing 11.6 per cent of retail sales, though lower shelf prices and promotions weighed on margins. Hotel sales rose 4.2 per cent and hotel EBIT rose 4.1 per cent.

What to Watch

The principal risks are weaker consumer spending, continued price competition in liquor, regulatory and community scrutiny of gaming, and the cost of the investment programme against a $1.9 billion net debt position. The quarterly update did not include an Earnings guide, and comparable sales and Margin data were not available, so the profit trajectory for the first half cannot be inferred from sales alone. Key milestones include delivery of the 34 refurbishments, online growth momentum, the cost-out programme and Christmas trading. The interim result is expected in early 2027.