Endeavour Group (EDV) H2 2024 earnings summary

Executive summary

• Achieved record sales and EBIT in both Retail and Hotels segments, supported by gross margin expansion, cost optimization, and disciplined capital management.

• Maintained full-year dividend at AUD 0.218 per share, with stable payout and strong cash generation.

• Continued progress on strategic priorities, including business simplification, digital engagement, and responsible operations.

• Progressed separation from Woolworths and execution of the One Endeavour technology program.

• Positioned for long-term shareholder value creation, targeting 10%+ annual growth from FY26.

Financial highlights

• Group sales reached $12.3b, up 3.6% year-over-year (1.8% on a 52-week basis); operating EBIT up 3.4% (52-week basis).

• Net profit after tax declined due to increased finance and lease costs, in line with guidance.

• Net operating cash flows were $1.2b, with a cash realization ratio of 108%; net debt reduced by $55m.

• Dividend payments totaled AUD 390m for the year; EPS was 28.6c, down 3.1%.

• Leverage ratio at 3.5x, within target range.

Outlook and guidance

• Early F25 trading shows improved sales momentum: Retail up 0.61% and Hotels up 2% in the first seven weeks.

• Focus on maximizing returns from existing assets, operational optimization, and unlocking $150m EBIT opportunity in Hotels by 2028.

• F25 finance costs expected between $310m and $325m; CapEx guidance set at $450–500m, including $60–80m for One Endeavour program.

• Targeting mid-to-high single digit EBIT growth, cash conversion ratio of 90–110%, and dividend payout ratio of 70–75%.

• Targeting 10%+ value creation (EPS and dividend growth) from FY26.