Endeavour Group (ASX:EDV): F26 Results, Significant Items and Cost Reset Across Retail and Hotels

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Endeavour Group (ASX:EDV): F26 Results, Significant Items and Cost Reset Across Retail and Hotels

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Highlights

Endeavour Group (ASX:EDV) reported F26 group sales of A$12.212 billion, up 1.3%, with underlying EBIT of A$845 million, down 8.7%.
Statutory net profit after tax was A$52 million after A$372 million of pre-tax significant items.
Hotels sales rose 4.2% to A$2.196 billion, while Retail sales increased 0.7% to A$10.016 billion.
The 2026 annual general meeting is scheduled for 30 October 2026.

Endeavour Group Limited operates a drinks and hospitality business in Australia, combining the Dan Murphy's and BWS liquor retail brands with a portfolio of pubs, bars, gaming rooms and accommodation venues. The company's F26 results, released in August, showed modest sales growth alongside lower underlying earnings and a large block of non-recurring charges, and a cost reduction program now frames its F27 plans.

Company Business

Endeavour Group reports through two main segments. Retail covers Dan Murphy's, BWS and a smaller specialty business, while Hotels covers venues that earn revenue from food, bar, gaming and accommodation. The economics differ: Retail reported a gross margin of 23.6%, while Hotels reported 84.9% with much higher venue operating costs.

For Endeavour Group (ASX:EDV), Retail accounts for the larger share of revenue, with A$10.016 billion of F26 sales, compared with A$2.196 billion from Hotels. Hotels nonetheless produced almost as much underlying EBIT as Retail, at A$462 million against A$464 million.

Recent Development

In late August 2026, the company reported results for the 52 weeks ended 28 June 2026. Group sales rose 1.3% to A$12.212 billion, while underlying EBIT fell 8.7% to A$845 million and underlying net profit after tax declined 14.8% to A$363 million. Statutory net profit after tax was A$52 million, compared with A$426 million in the prior year.

The gap between underlying and statutory profit reflects A$372 million of pre-tax significant items, or A$311 million after tax. These included A$194 million of portfolio rationalisation and asset impairments, A$80 million of non-current asset write-downs and A$58 million of restructuring and strategic review costs.

A May 2026 trading update had reported third-quarter sales growth of 2.9% in Retail and 3.7% in Hotels. The company has set a target of A$300 million in cost reductions by F29, including A$100 million in F27.

Financial Performance and Sector Context

Retail underlying EBIT was A$464 million, down 17.6%, with the EBIT margin falling to 4.6% from 5.7%. Dan Murphy's and BWS combined sales rose 1.0% to A$9.817 billion, while the Specialty business declined 14.6% to A$199 million.

Hotels delivered underlying EBIT of A$462 million, up 4.1%, on an EBIT margin of 21.0%. Accommodation sales rose 9.3% and bar sales 5.0%. The F26 dividend declared by Endeavour Group (ASX:EDV) totalled 12.0 cents per share, compared with 18.8 cents a year earlier. The final component of 1.2 cents is 30% franked and was paid on 1 October 2026.

Underlying operating cash flow was A$933 million, down from A$1,150 million. Net debt increased by A$198 million to A$1.883 billion, equal to underlying leverage of 1.9 times before lease accounting, with A$990 million of committed undrawn facilities.

Sector conditions remain mixed. Management described subdued consumer demand outside key events, elevated promotional activity in liquor retail and softer hospitality spending as cost-of-living pressures increased.

Risks to Consider

Endeavour Group (ASX:EDV) faces exposure to household spending on discretionary items, competitive pricing in liquor retail and wage inflation across stores and venues. Hotels earnings depend partly on gaming revenue, which the company said has moderated, and on renewal programs that can disrupt trading. The company expects renewal disruption to affect earnings in F27. The One Endeavour technology program, which separates systems from Woolworths Group, requires A$75 million to A$90 million of capital expenditure in F27. Finance costs are guided at A$330 million to A$340 million.

What to Watch Next

The 2026 annual general meeting is scheduled for 30 October 2026. Trading over the first seven weeks of F27 showed Retail sales up 4.6% and Hotels sales up 2.2%, although Retail growth begins cycling the lower shelf-price reset at the end of the first quarter. F27 guidance includes capital expenditure of A$550 million to A$650 million and up to 75 hotel renewals. Progress against the A$100 million F27 cost reduction target is another measurable milestone.

Key Insights

Endeavour Group (ASX:EDV) enters F27 with sales growth that has been modest, lower underlying earnings in Retail, higher earnings in Hotels and a balance sheet carrying more debt than a year earlier. The company is pursuing a reset of its retail brands, an expanded hotel renewal program and a multi-year cost plan. Monitoring points include Retail margins, Hotels sales momentum, the cost of the technology program, leverage and the pace of cost savings.

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