Endeavour Group Lifts First-Quarter Sales 2.8% to AU$3.18 Billion as Retail Growth Continues

Highlights:

• Group sales for the 14 weeks to 4 October 2026 rose 2.8% to AU$3,178 million, with Retail up 3.0% and Hotels up 1.9%.

• Retail has now recorded four consecutive quarters of sales growth, led by transaction growth at Dan Murphy’s.

• Management is targeting AU$300 million in cost savings by F29 while stepping up investment in Hotels, with 34 venue renewals due by the end of H1.

Endeavour Group Limited (ASX: EDV) shared its first-quarter F27 trading update at its Annual General Meeting in Sydney on 30 October 2026. Shares were last quoted at AU$3.345, up AU$0.095 or 2.923%.

Retail Outpaces the Liquor Market

Retail sales reached AU$2,575 million for the 14 weeks from 29 June 2026, up from AU$2,499 million a year earlier. Chief Executive Jayne Hrdlicka said the division continued to beat the broader liquor market in a difficult economic climate, helped by a very strong July and more subdued spending afterwards. Four consecutive quarters of growth were recorded after adjusting for the timing of Easter.

Dan Murphy’s added three net new stores and BWS added two, while promotional activity stayed elevated, particularly online. Retail has now begun lapping stronger prior-year sales, which followed lower shelf prices and heavier industry-wide promotions.

Hotels Slow Amid Cost-of-Living Pressure

Hotels sales rose 1.9% to AU$603 million. Management said higher fuel prices and wider cost-of-living pressure weighed on discretionary spending. Gaming revenue was flat on the prior period, in line with market trends, whereas food and beverage sales were supported by a record 38% scan rate among pub+ loyalty members. Renewals are tracking to plan, with 34 additional venues expected to be upgraded by the end of the first half.

Strategy and Full-Year Results Recap

Chair Tim Poole acknowledged the company has not delivered the performance expected since its ASX listing five years ago, but said a strategic review has put a customer-focused plan and renewed leadership in place. For F26, Group sales rose 1.3% to AU$12.2 billion, while underlying EBIT fell 8.7% to AU$845 million and underlying profit after tax dropped 14.8% to AU$363 million. Operating cash flow was AU$933 million, and the total dividend was 12 cents per share, fully franked. The targeted payout ratio now sits between 50% and 75% of underlying net profit.

Hrdlicka outlined three priorities: strengthening Retail by reinforcing Dan Murphy’s value leadership, lifting Hotels performance through simpler operations and greater investment, and simplifying the Group to release capital. These include the AU$300 million cost reduction program due by F29.

Board Changes and Outlook

Rod van Onselen and Joe Pollard retired at the close of the meeting. Mike Ihlein joined during the year, and Owen Wilson will become a director once regulatory approvals arrive. Looking ahead, Endeavour expects customers to keep budgets tight and favour value. The second quarter includes Spring Racing, Christmas and the start of summer holidays, and the company says it has plans in place to capture that demand.

Note: All data presented is based on information available at the time of writing.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial usezonly. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au