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Highlights

  • Endeavour Group is an Australian drinks retailers and operator of multiple licenced hospitality venues
  • In FY23, the company recorded a 2.5% YoY increase in revenue to AUD 11,884 million
  • In 3QFY24, EDV’s sales jumped 2.2% YoY to AUD 2,893 million

Endeavour Group Limited (ASX: EDV) is an ASX-listed company which operates a retail drinks network. The company produces and distributes exclusive brands through its specialty businesses. Additionally, Endeavour Group boasts a portfolio of licensed hotels across Australia.

In the financial year 2023 (FY23), the company recorded 2.5% YoY growth in revenue to AUD 11,884 million, 10.8% YoY rise in EBITDA to AUD 1,606 million and 6.9% YoY jump in net income to AUD 529 million.

Latest financial performance

The company’s sales increased by 2.5% YoY to AUD 6,667 million in 1HFY24, driven by both the Retail and Hotels segments. EDV's EBIT rose by 2.6% YoY to AUD 661 million in 1HFY24. However, the company's profit in 1HFY24 declined by approximately 3.6% YoYto AUD 351 million in 1HFY24.

In 3QFY24, the company recorded 2.2% YoY increase in sales to AUD 2,893 million and this growth was driven by higher sales in both the retail and hotel sectors. The group remains strategically positioned to operate effectively throughout the economic cycle, with strong customer advocacy and value propositions underpinning its resilience.

Outlook

In FY24, EDV’s capital expenditure remains within the previously mentioned target range of AUD 420-480mn, with the schedule of hotel acquisitions being the most significant variable.

Finance costs for FY24 are expected to remain within the previously guided range of AUD 300-310mn.

Share performance of EDV

EDV shares closed 0.40% higher at AUD 5.030 apiece on 10 July 2024. In the last one year, EDV’s share price has decreased by 18.48%, and in the last three months, it has fallen by 5.63%.

The 52-week high of EDV is AUD 6.28, recorded on 13 July 2023, and the 52-week low is AUD 4.76, recorded on 14 November 2023.

EDV Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 10 July 2024. The reference data in this report has been partly sourced from REFINITIV.