Key Highlights

  • Endeavour Group Limited (ASX:EDV) reported preliminary FY26 group sales of $12.21 billion, up 1.3% from the previous financial year.
  • Underlying EBIT was $845 million, while underlying NPAT totalled $363 million.
  • The company expects to recognise $372 million in pre-tax significant items, primarily related to asset impairments and strategic restructuring.
  • Management said the portfolio review is intended to simplify operations and support the company's multi-year business transformation strategy.

Endeavour Group Limited (ASX:EDV) has released its preliminary unaudited financial results for the financial year ended 28 June 2026, together with details of significant items expected to be recognised in its FY26 financial statements.

The company reported total group sales of $12.21 billion, representing a 1.3% increase compared with the previous financial year. Retail sales increased 0.7% to $10.02 billion, while Hotels revenue rose 4.2% to $2.20 billion, reflecting continued contributions from both operating segments.

The preliminary results remain subject to completion of the external audit process, with audited full-year results scheduled for release on 24 August 2026.

Underlying Earnings Reflect Mixed Segment Performance

Endeavour reported Underlying Earnings Before Interest and Tax (EBIT) of $845 million, compared with $926 million in FY25.

Within the business, the Retail segment generated underlying EBIT of $464 million, while the Hotels division reported $462 million. The Group also recorded $81 million in other underlying costs, resulting in consolidated underlying EBIT of $845 million.

Underlying Net Profit After Tax (NPAT) was $363 million, compared with $426 million in the previous financial year.

The company noted that its dividend policy continues to be based on underlying NPAT, which excludes the impact of significant items.

Significant Items Total $372 Million Before Tax

Endeavour expects to recognise $372 million in pre-tax significant items during FY26, equivalent to $311 million after tax. The company indicated that most of these charges are non-cash and relate primarily to asset write-downs and implementation costs associated with its strategic review.

The largest component comprises $194 million of portfolio rationalisation and asset impairment charges, followed by $80 million in write-downs of non-current assets.

Restructuring and strategy review costs total $58 million, while a $40 million provision has been recognised in relation to the Melbourne Liquor Distribution Centre.

Portfolio Review Drives Asset Reassessment

The portfolio rationalisation includes carrying value adjustments across several parts of the business.

Within Pinnacle, the company has adjusted the carrying value of winery and vineyard assets following their reclassification as held for sale or closure and has written down inventory associated with product range rationalisation.

The Hotels division includes impairment charges relating to 25 hotel properties, while the Retail business includes impairments affecting 75 stores together with inventory rationalisation across parts of the retail product range.

Separately, the company recorded write-downs relating to legacy technology systems, intangible assets and property, plant and equipment that are no longer expected to contribute to future operations following the strategic review.

Restructuring Supports Business Transformation

The restructuring costs primarily relate to the establishment of a centralised Business Services function, including outsourcing selected back-office activities and broader organisational restructuring.

The company said these initiatives are intended to support future cost reduction objectives while improving operational efficiency. The restructuring expenses also include advisory and consulting costs associated with the development and execution of the broader group-wide strategy review.

Chief Executive Officer Jayne Hrdlicka said the reassessment of the company's asset base and portfolio positions Endeavour to focus future capital investment on its core businesses while progressing its multi-year business transformation strategy.

Melbourne Distribution Centre Provision Recognised

Endeavour also recognised a $40 million provision relating to the future cessation of warehouse operations at the Melbourne Liquor Distribution Centre.

The provision reflects the company's contractual obligation to reimburse Woolworths Group for one-off cessation costs after Woolworths' decision to close the facility in September 2028. The payment is expected to occur during that period.

Conclusion

Endeavour Group Limited's (ASX:EDV) preliminary FY26 results outline modest revenue growth alongside lower underlying earnings and a substantial package of significant items linked to its strategic portfolio review. The recognised asset impairments, restructuring initiatives and portfolio rationalisation reflect the company's efforts to simplify operations and reposition its business for long-term transformation. Further detail on the company's financial performance and strategic initiatives is expected when audited full-year results are released later this month.