Endeavour Group (EDV) H1 2025 earnings summary

Executive summary

• H1 F25 sales were $6.6 billion, down 0.7% year-over-year, with strong Christmas trading offsetting supply chain disruptions, especially in Victoria.

• Group EBIT declined 10% to $595 million and NPAT fell 15.1% to $298 million, impacted by supply chain issues and $13 million in restructuring costs.

• Cash realisation ratio improved to 168%, with net debt reduced by $273 million.

• Interim dividend of 12.5c per share declared, with a 75% payout ratio, down 12.6% year-over-year.

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

Financial highlights

• Operating cash flow reached $1.04 billion, up $122 million from H1 F24.

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

• Gross margin increased to 34.9%, with improvements in both Retail (+11bps) and Hotels (+16bps).

• Retail EBIT margin was 7.2% (within guidance), after $11 million in restructuring costs and $8 million supply chain impact; Hotels EBIT margin improved to 24.5%.

• Earnings per share was 16.7c, down from 19.6c year-over-year.

Outlook and guidance

• Retail sales in the first seven weeks of H2 F25 declined 0.8%, while Hotels sales rose 4.7%.

• Full-year finance costs expected at $305–315 million.

• Full-year capital expenditure now guided at $375–425 million, including $45–55 million for One Endeavour.

• Retail market conditions expected to improve as inflation moderates; focus remains on price leadership and efficiency.

• Targeting $290 million+ cumulative cost savings by FY26.