Endeavour Group Limited (ASX:EDV), the operator of Dan Murphy's, BWS, and a network of Hotels across Australia, reported its financial results for the 52 weeks ended 28 June 2026 (F26) in a release dated 18 August 2026. Group sales reached $12.2 billion, up 1.3%, while underlying NPAT of $363 million declined 14.8% on the prior year, reflecting the deliberate Investment in lower shelf prices in the Retail segment and the impact of significant cost items. The Board declared a fully franked final Dividend of 1.2 cents per share and reaffirmed its $300 million cost-out target by F29.

About Endeavour Group

Endeavour Group Limited operates Australia's largest portfolio of liquor retail stores under the Dan Murphy's and BWS banners, as well as a Hotels division comprising 351 venues (including clubs) across the country. Spun off from Woolworths Group in 2021 and listed on the ASX under the ticker EDV, Endeavour serves millions of customers through its retail and hospitality operations. The company's headquarters are in Sydney, and its retail network of 1,739 stores generates the majority of group revenue.

F26 Results — Released 18 August 2026

F26 Retail sales were $10.0 billion, up 0.7%, driven by Dan Murphy's and BWS combined growth of 1.0% to $9.8 billion, with comparable store sales growth of 0.5%. Combined sales growth for Dan Murphy's and BWS accelerated from 0.7% in H1 to 1.4% in H2 as customers responded to the company's lower everyday shelf prices and improved promotional activity. Online sales grew 34.8% to $1.1 billion, representing 11.6% of combined Dan Murphy's and BWS sales. Underlying EBIT for Retail was $464 million, down 17.6% on F25, as gross Margin declined 86 basis points due to the investment in lower prices.

The Hotels segment delivered sales of $2.2 billion, up 4.2%, with comparable hotel sales growth of 4.4%. Hotels Underlying EBIT rose 4.1% to $462 million. Accommodation Revenue grew 9.3% and Gaming revenue rose 4.4%, with approximately 2,000 new Electronic Gaming Machines installed during the year. The Hotels segment completed 38 renewals during F26 and achieved an Underlying EBIT margin of 21.0%.

Group Underlying EBIT was $845 million, down 8.7% from $926 million in F25. The Group incurred $372 million (pre-tax) in Significant Items, including $40 million related to the Melbourne Liquor Distribution Centre provision, $58 million in restructuring and strategic review costs, $80 million in non-current asset write-downs, and $194 million in portfolio rationalisation and asset impairments. Statutory NPAT was $52 million, down 87.8% on the $426 million reported in F25. The Group's underlying Leverage Ratio was 1.9x on a pre-AASB 16 basis, with $990 million of undrawn committed Debt facilities remaining available.

As part of the F26 strategy execution, Endeavour introduced lower everyday shelf prices, increased promotional competitiveness, restructured its operating model, accelerated Hotel renewals and EGMs, and revised its dividend policy to target a Payout Ratio of 50–75% of underlying NPAT. The company also confirmed 70% of the F27 $100 million cost-out target has already been executed. The Group has announced its intention to exit the majority of its winery and vineyard portfolio, including Chapel Hill, Oakridge, and Josef Chromy.

Dividend

The Board declared a fully franked final dividend of 1.2 cents per share. Combined with the Interim Dividend of 10.8 cents per share, the full-year F26 dividend is 12.0 cents per share, representing a payout ratio of 59% of underlying NPAT. The revised dividend policy targets a payout ratio of between 50% and 75% of underlying NPAT, reflecting the Group's need for funding flexibility to execute its transformation strategy. The Record Date was 2 September 2026, with payment expected on 1 October 2026.

Industry Context

The Australian liquor retail market has been experiencing elevated competitive intensity, with consumers responding to cost-of-living pressures by seeking value across grocery and discretionary spending categories. The Hotels segment has benefited from sustained Demand for food, beverage, accommodation, and gaming across the domestic market, partially aided by one-off events including the FIFA World Cup in Q4. The company's investment in lower shelf prices is consistent with a sector-wide trend toward promotional and pricing intensity in retail, which is compressing gross margins across the industry.

Risks and Uncertainties

Endeavour's F27 outlook is subject to ongoing uncertainty around consumer spending, the potential impact of continuing Middle East conflict on fuel prices, the Wealth effect of a declining housing market, and the potential for higher interest rates. The Hotels division faces disruption to trading from accelerated renewal activity. The Group's net debt increased by $198 million to $1.9 billion in F26, driven by Capital Expenditure on store and venue renewals and lower earnings. Retail will begin cycling higher comparable sales in Q1 F27 following the introduction of lower shelf prices. The disposal of the winery portfolio and the closure of the Melbourne Liquor Distribution Centre are subject to execution and market conditions.