Endeavour Group (EDV) H1 2025 earnings summary

Executive summary

• Revenue was $6.62 billion, down 0.7% year-over-year, with strong Christmas trading offsetting supply chain disruptions, especially in Victoria.

• Net profit after tax was $298 million, down 15.1% from the prior year.

• Operating EBIT declined 6.6% to $634 million, impacted by $13 million in one-off restructuring costs and supply chain issues.

• Strong cash flow generation led to a 168% cash realisation ratio and net debt reduction of $273 million.

• Disciplined cost management and the EndeavourGO program delivered $40 million in H1 savings, with $230 million cumulative savings to date.

Financial highlights

• Retail sales declined 1.5% to $5.5 billion, while Hotels sales grew 3.3% to $1.1 billion year-over-year.

• Operating EBIT was $595 million, down from $661 million year-over-year; underlying EBIT down 4.7% excluding one-off costs.

• Net operating cash flow exceeded $1 billion, up from $914 million in the prior year; net debt reduced by $273 million.

• Interim dividend of 12.5 cents per share declared, fully franked, with a 75% payout ratio.

• Earnings per share was 16.7 cents, down from 19.6 cents in the previous half-year.

Outlook and guidance

• Retail sales in the first seven weeks of H2 declined 0.8%, while Hotels sales rose 4.7%.

• Focus remains on price leadership, cost management, and disciplined capital allocation.

• Up to six new Dan Murphy’s stores and 13 hotel renewals planned for H2; continued asset recycling and large-scale development planning.

• Full-year CapEx expected between $375 million and $425 million, including $45–55 million for One Endeavour, lower than previous guidance due to rephasing.

• Finance costs for FY25 expected at $305–315 million.