Highlights

• Group sales rose 1.3% to $12.2 billion, while underlying EBIT declined 8.7%.
• Retail performance gained traction during the latter part of FY26, as combined sales growth across Dan Murphy’s and BWS rose to 1.4% in H2, compared with 0.7% in H1.
• Hotels delivered 4.2% sales growth as Endeavour accelerated venue renewals and technology investments.

Stronger Sales Despite Earnings Pressure

Endeavour Group Limited (ASX: EDV) released its FY26 results on 24 August 2026, outlining a year of improving sales momentum alongside pressure on profitability. The Group reported sales of $12.2 billion, up 1.3% from FY25, while underlying EBIT declined 8.7% to $845 million. Underlying NPAT decreased 14.8% to $363 million, while statutory NPAT was $52 million, reflecting $311 million in significant items after tax. The financial performance reflects contrasting trends across Endeavour’s key businesses. Retail sales increased 0.7% to approximately $10.0 billion, but underlying EBIT dropped 17.6% to $464 million. Management attributed the decline partly to lower gross profit margins following investment in lower shelf prices and heightened promotional competition.

Retail Momentum Begins to Build

Despite margin pressures, the Retail segment showed signs of improvement through FY26. Sales momentum strengthened across Dan Murphy’s and BWS during FY26, with combined growth rising to 1.4% in H2 from 0.7% in H1. Comparable store sales also recorded a 0.5% increase. The Group also reported stronger customer perceptions around value and price leadership. Digital engagement also remained an important growth driver, with Dan Murphy’s online sales rising 45% year-on-year and BWS online sales increasing 10%.

Hotels Deliver Consistent Growth

Hotels provided a stronger earnings contribution, with sales climbing 4.2% to $2.2 billion and underlying EBIT increasing 4.1% to $462 million. Accommodation revenue grew 9.3%, while gaming revenue increased 4.4%, supported by the installation of more than 2,000 electronic gaming machines. Endeavour completed 38 hotel renewals during FY26 and plans to increase this to as many as 75 in FY27.

FY27 Investment Outlook

Looking ahead, Endeavour expects FY27 capital expenditure of $550 million to $650 million, covering hotel renewals, digital initiatives, eCommerce and its One Endeavour transformation program. The Group is also targeting $300 million of cost savings by FY29, including $100 million in FY27. Overall, Endeavour enters FY27 with improving retail momentum and continued hotel investment, although elevated costs, consumer uncertainty and higher planned spending remain key factors to watch.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. 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. 

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