Endeavour Group (EDV) investor relations material

Executive summary

• Group sales rose 1.3% year-over-year to $12.2 billion, with retail and hotels both delivering positive growth and retail sales momentum building.

• Strategic reset focused on retail value, price leadership, digital transformation, and foundational improvements in hotels, including operating model simplification and asset divestments.

• Cost reduction initiatives target $300 million by FY29, with 70% of FY27's $100 million target already executed.

• Leadership team strengthened and comprehensive transformation plan underway.

• Dividend policy revised to a 50–75% payout of underlying NPAT, with a full-year payout ratio of 59%.

Financial highlights

• Underlying group EBIT declined 8.7% to $845 million, mainly due to lower retail earnings and margin compression; hotels EBIT grew 4.1% to $462 million.

• Statutory NPAT dropped 87.8% to $52 million, impacted by $372 million in significant items (pre-tax), mainly non-cash asset write-downs and restructuring.

• Underlying NPAT fell 14.8% to $363 million; underlying EPS was 20.2c, down from 23.7c.

• Underlying operating cash flow was $933 million, with a cash realisation ratio of 93%.

• Net debt increased by $198 million to $1.9 billion, with leverage ratio at 1.9x pre-AASB 16.

• Total capital expenditure was $448 million, up $54 million from the prior year.

• Final dividend declared at 1.2 cents per share.

Outlook and guidance

• FY27 is positioned as a year of significant investment, with capex targeted at $550–$650 million and OpEx rising for transformation initiatives.

• Retail sales growth started strong in FY27 at 4.6%, hotels at 2.2%, but consumer spending outlook remains uncertain due to cost of living pressures and macroeconomic risks.

• Up to 75 hotel renewals and ~1,900–2,000 new EGMs targeted for FY27, with expected short-term margin impact.

• Finance costs projected to rise to $330–$340 million in FY27.